Yes. You’re right that in terms of running out of resources and pollution, reducing the population can be a benefit.
The trouble with a shrinking population is more about the economy. If you have 10 million old people, with their pensions, living longer than ever thanks to medical advancements, it costs a lot of money. In theory, younger working people help pay for those social benefits. If there are less younger people than expected, due to the declining birth rates, it’s harder to sustain all the non working older people (and other non working people for different reasons). Less people paying the taxes that would go to those social benefits.
In the long run, a smaller population could have some benefits (more sustainable and so on) but in the short run there are other problems with the economy.
Edit: typo
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