Population and Growth

Wealth was increasing exponentially during the baby boomers years because of a rise in world population that increases aggregate demand. Currently, the world population is peaking with an increasing numbers of greying population.

Looking at Japan, with its ageing population and low birth rates, it is clearly not growing. A bet can be made if birth rate increases enough to grow the population, economic growth will happen.

Currently, the reason for the optimism of commodities is because the current availability of resources are not enough to sustain everyone. Why is Africa so poor? It may be that countries exploit their resources, leaving the African people to poverty. Scarce resources is the main reason.

As there are economic cycles, I'm sure there are population cycles. Once the baby boomers die, the population cycle will be at its trough and a new upswing will happen. It may take 50 - 100 years depending on the cost of living.

Cost of living is rising, which may mean that resources are getting scarcer and scarcer.