If the Human Population decreases, then cost of living will too?

[MiracleSurvivor]

We have seen a fall in human population in some countries, and in developed countries they have fewer children. If there are less humans, will cost of living decrease?

 

[00001001]

We have seen a fall in human population in some countries, and in developed countries they have fewer children. If there are less humans, will cost of living decrease?

Trade (or Capitalism if you want to get fancy) is based on supply and demand. While fewer people means fewer buyers/consumers (thus lower prices), fewer people also means fewer seller/producers (less competition). So in the end it doesn't have any effect at all.

There are two exceptions though:
- Mass production, the more products are produced the cheaper every unit gets. This is mainly because of the massive upfront cost of production (think the factory where cars are made).
- Land price, since land is finite and can't be created. It could mean that land becomes cheaper as fewer people exist on the planet.

 

[Misbah-Abd]

You posted this before. Population has little to do with cost of living, rather, government spending, inflation, money supply, interest rates, demand for certain goods has more to do with it.

 

[Karl]

You posted this before. Population has little to do with cost of living, rather, government spending, inflation, money supply, interest rates, demand for certain goods has more to do with it.

If you have a low enough population then you don't need a government. The cost of living would be nothing, only the work to gather food and build some shelter.

 

[Misbah-Abd]

If you have a low enough population then you don't need a government. The cost of living would be nothing, only the work to gather food and build some shelter.

We are talking 21st century economy not a Robinson Crusoe economy.

 

[MiracleSurvivor]

Why are people having less babies?

Before people use to bring 3-4, but some poor countries after being developed just bring at most 2. Why?