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MENTAL MODEL · M2707

Malthusian Trap

Malthusian Trap
BusinessHigh supportEconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Before the Industrial Revolution, productivity gains from technological progress did not translate into improved living standards but into population growth. The additional population consumed the additional food, keeping per capita income at the edge of subsistence. -

SCAFFOLDING EFFECT

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The fate of growth being diluted. - This explains why some companies' businesses grow larger, yet employees become more tired and wages do not rise. Because the dividends from 'efficiency gains' are eaten up by 'scale expansion' (hiring more people / taking on more trivial tasks). To escape the trap, a 'paradigm revolution' must occur (like the Industrial Revolution for humanity, AI for companies), achieving an exponential leap in per capita output.

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The Malthusian trap refers to when productivity gains create a surplus, population grows accordingly until per capita resources fall back to subsistence levels, causing the fruits of growth to be diluted by population, leading to a long-term low-level equilibrium.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/MalthusianismZH · Explicit
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