Before you rush headlong into a society where everybody fends for himself, you have to take into account that all societies are dynamic systems. They have make-break points above which social investments cause the population to grow, allowing the society to become self-sustaining, and below which the population becomes susceptible to disease, the population declines and the society collapses.
According to Epidemiological Transition Theory there are four main variables in these dynamic processes: 1) the health status of the population, 2) population growth, 3) population longevity, and 4) economic investment. These four variable are all interacting and define various “tipping” points which cause the society to sustain itself, flourish, or collapse.
Economic growth has a direct impact on the health and longevity of a population through increasing levels of income, consumption and health investments. In addition, there is a reverse mechanism through which the health status of a population affects longevity or life expectancy, which, in turn effects economic growth and further increase longevity, which, in turn, induces agents to spend more on capital investments, which in turn affects economic growth.
Mortality is a fundamental factor in population dynamics and at a certain “tipping point” there is an epidemiological transition represents a long term shift in mortality from a regime of mostly infectious diseases to a regime of mostly degenerative and man-made diseases. This transition is shown to favor the young over the old and females over males and to be closely associated with rising standards of living and improved nutrition in the basic patterns of the 19th Century, and improved medical and health practices in the 20th Century.
The theory predicts three basic models:
The Classical Model (England, most Western European countries). The mortality pattern follows three stages.
A pre-industrial age of pestilence and famine generates a cyclical population growth with frequent peaks in mortality. This is followed by an intermediate stage of receding pandemics in the middle or later part of the 19th Century giving way to a gradual mortality decline. And a final stage of degenerative and man made diseases in the 20th Century corresponds to more precipitous declines in mortality.
Economic factors (improvements in standards of living and in nutrition in the 19th Century) were the primary determinants of the classical transition, but were later augmented in the 20th Century by sanitary improvements, followed by medical and public health progress. The final stage closely parallels the demographic transitions of the Industrial Revolution, which was followed by a population explosion and sustained economic growth.
The Accelerated Model (Japan). The transition follows a similar patter as the Classical Model, but the changes in mortality occurred at a later stage of development and were more rapid. This corresponds to the endogenous transition taking place during the modern growth regime.
The Delayed Model (most countries in Africa, Latin America, and Asia). The substantial decreases in mortality in these economies are very recent. Public health measures have been a major component of a generally imported medical package that pulled mortality down while keeping fertility high, thus generating a population explosion.
When you propose going back to lower levels of economic investment, what you are essentially doing is running the Classical process in reverse. At some unforeseeable point, you will reach a tipping point and your society will collapse and you will end up back in the state described by the Delayed model. Everybody loses big time.
Whenever you start looking for excuses for social disinvestment, i.e., “I don’t want to fund free riders or people I don’t like.” You inevitably generate class conflict between the people who get the benefits of the society and those who don’t. This too can reach a tipping point where people want to make wholesale disinvestments in the “other” guy’s benefits until nobody wants to contribute anything in the way of social economic investment. Schools decline, technology stagnates, infrastructure falls apart, people become stressed and prone to disease, or they are subjugated by their more robust neighbors and have to put up with the inequitable bargains that tend to follow a decline in power. A more egalitarian society is a less conflict ridden society, and more productive and wealthy.
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