00:01
So we are analyzing the way that countries grow over time.
00:06
And again, we're thinking here about per capita output, right? and remember that per capita output is equal to output over the number of people.
00:19
So population growth here is actually bad for per capita output.
00:24
Everything else equal, everything else equal, more people is going to decrease the amount of output per worker.
00:33
So population growth is never really a force to make the individual richer.
00:38
Population growth makes the country grow and makes the total size of the economy grow, but it doesn't make the individual person better off.
00:48
So population growth is not going to be right for either of these.
00:53
But number one, we're thinking specifically about growth in per capita output during a country's transition to a long run steady state equilibrium.
01:00
So what does this mean by a long -run study -state equilibrium, right? normally, when we're thinking about long -run, we usually are thinking about capital per worker being constant in some sense, right? when we are, when i say long run, i'm thinking about that the capital dynamics have played out.
01:23
This is what economists mean.
01:25
There's no more traction in capital.
01:27
So almost by definition, this is going to be a short -run -only effect, right? by definition, if capital accumulation is happening that's causing people to get a whole lot richer, this capital accumulation must be happening in the short run, right? that's strictly an example.
01:45
And a really good example of this is asian countries post -world war ii...