Optimum Theory of Population

This theory has been offered by Dr. Cannan. According to Dr. Cannan, there is direct relationship between the size of population and the existing resources of a country. He divides the world into three categories.

1. OVER POPULATED.
2. UNDER POPULATED.
3. OPTIMUM SIZE OF POPULATION.


1. OVER POPULATED :- If during a period of time the per capita income beings to fall due to increase in population, the country is said to be over populated.

2. UNDER POPULATED :- If the number of people are less than the resources of the country and they are unable to make full use of these resources, the country is said to be under populated.

3. OPTIMUM SIZE OF POPULATION :- When the size of population is according to the size of natural resources are fully utilized. In this case the per capita out put will be maximum and the country is said to have an ideal size of population or optimum population. Thus optimum population is the size of population at which per capita income is the highest, at any given time. The mid point between over population and under population as is shown in the following diagram :


EXPLANATION :- In this diagram population is measured along OX and output along OY. OL size of population is an optimum size population, because resources of the country are fully utilized and out put per capita is maximum ( PL ). If the size of population is less than OL, the country is said to be under populated and if it exceeds than OL the country is said to be over populated. The optimum population and stock of capital both are not static to these changes.

CRITICISM ON OPTIMUM THEORY

This theory has been criticized on the following grounds :

1. NO PRACTICAL VALUE :- It is not possible in practice to find the size of population less than or greater than optimum population.

2. NOT AN INDEX OF ECONOMIC DEVELOPMENT :- The size of population can not be an index of economic development. If there is a continuous increase adverse effect on the economy.

3. QUALITY OF PEOPLE IGNORED :- This theory does not throw the light on the quality of people. An honest and educated society per capita out put will be more than others.

4. OTHER FACTORS IGNORES :- This theory ignores the social political and historical accident which are also essentials for economic development.

5. CONSTANT CHANGES :- The size of population is related to the national resources. Since the state of technology and resources are subject to constant changes. So its become very difficult to find out the optimum size of population.