It's not dumb.
Overpopulation is not the biggest threat to mankind in the movie. It's the destruction of the environment, which is killing off the food supply. The only food supply left for the masses is plankton. The earth was overpopulated at the time of the movie, but it was going to reverse course. People would die off from lack of food (because the plankton was dying) and the human race would be extinct in a matter of decades.
The elites realized this and came up with a plan. To reduce the population, encourage people to commit assisted suicide, then use those people as a food resource to replace plankton as a food source and save the human race from extinction.
I guess the confusion about this movie lies in this idea that the human population is being sustained on soylent green. It's not. It's being sustained on plankton, the last real food supply left. We are catching it just as plankton is dying.
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