The increase in productivity that result from the larger scale of industry, and from the additional knowledge contributed by additional people, are very important in analyzing the population and economic development. Developed countries with faster rates of population growth initially fall behind in per capita income, but only very slightly. Later they do better than those with lower rates of population growth, usually in 30 to 80 yrs. Though an increment of population initially has a small negative effect upon economic welfare, after a few decades the effect becomes positive, and large.
Immigrants pay much more in taxes than the cost of the welfare services and schooling that they use. In fact, the average immigrant family uses less welfare services and pays more taxes than the average native family. This is because immigrants are not old, tired and without skills. Rather, they are on average in the early prime of their work lives. And they are about as well educated as the native labor force, with a much larger proportion of professional and technical persons such as doctors and engineers.
Immigrants directly raise productivity with the new scientific and technical ideas they invent. Immigrants not only take jobs, but with their earnings which they then spend, they make as many jobs as they take. Furthermore, they make additional new jobs with the new businesses that they open.
Additional children influence the lower developed countries economy by inducing people to work longer hours and invest more, as well as by causing an improvement in the social infrastructure, such as better roads and communication systems. Additional population also induces economies of scales in other ways. The upshot us that although additional children cause additional costs in the short run, a moderate rate of population growth in poor countries is more likely to lead to a higher standard of living in the long run rather than either zero population growth or a high rate of population growth.
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