Question

• What are "market externalities," including "positive externalities" and "negative externalities? Give two examples of positive externalities and two of negative externalities. Discuss negative externalities in view of "The story of stuff" • What is "Karl Polanyi's Paradox" (not his brother "Michael Polanyi's Paradox")? Give an example. What is the "Malthusian" theory of population, and what is its underlying ideology? What are the general arguments against Malthusian theory? What is the concept of "the carrying capacity of the Earth"? What is problematic about this concept? • What is the "demographic transition" theory and the 'wealth flows" theory of population? How do they specifically argue against the Malthusian theory? How does the article "Too many Africans?" critique mainstream ideas about overpopulation (especially Malthusian and neo-Malthusian ideas) and coincide with wealth flows theory? How does the critique also coincide with the documentary video "King Leopold's Ghost"? • In summary, does the textbook author regard overpopulation as a principal cause of global poverty, environmental degradation, and social/political conflict? Why or why not?

Answer 1

1. An externality is a cost or benefit to a third party who did not play an active role in creating that cost or benefit. Externalities can be positive and negative. Positive is when third party receives benefits without actually doing anything similarly negative is when third party has to bore the brunt of activities done by any other party.

Example: positive 1 Effect of a well educated labour to a company

2. Walking to work will reduce congestion on road and reduce pollution ..ultimately beneficial to all.

Example: Negative 1. Cigarette smoking by one will result passive smoking

2.noise pollution

B Negative externalities in the story of stuff could be the excessive usage of earth's resources by a few handful countries not just their own but the so called third world countries resources also.

C Polanyi paradox shows the difficulty of automating a task that is easy to carry out for us but difficult to explain. In other words "we know more than we can tell". Eg... Dextrous physical movements (climbing a hilly terrain)

D Malthusian theory is a theory of exponential population growth and limited food supply

The arguments against the theory states that it does not always stands true for example In western Europe population was rising at a rapid rate and at the same time the food supply was also rising due to increased technological advancement.

Another argument of theory is that limited supply of food is due to non availability of land but since globalisation came into picture the scenario has changed.

E. Carrying capacity of earth is the maximum size of the species that the earth can sustain indefinitely considering the amount of food, water and other amenities in the environment.

The problem with this concept is that increased human population is not a result of rising fertility but decreasing mortality due to advancements. As society becomes better it does not produce more but less and ultimately the human population will Begin a slow decline.

F. Demographic transition theory refers to a population cycle where it all begins with decline in death rate continues with rapid population growth and ends with a decline in birth rate.

Caldwell's wealth flows theory of population explains decline in fertility rate as a rational decision by parents based on the data transmitted through generations. There are two context 1. High fertility context - children produce more than they consume and therefore bring wealth to the parents 2. In low fertility context- parents spend a huge amount on children thus resulting in children being net economic cost.

The demographic theory in the last stage argues that the growth rate of population is very low in the last stage which refutes the argument done by Malthusian theory that population grows exponentially all the time.  

Under the wealth flows theory when children become expensive parents desire few of them which is again against the concept given in the Malthusian theory.