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Costs of Economic Growth (Increase in National Income)
1. People living in industrial towns suffer from the effects of a polluted atmosphere.
2. The manufacture of intoxicants together with urbanization and urban housing problems leads to an increase in crimes. This creates for the state the additional costs of the maintenance of prisons and a large police force to maintain law and order. Thus social welfare would be increased if the production and sale of intoxicants are curtailed.
3. While the expansion of the National Income owes a great deal to scientific research the application of research to new means of destruction add nothing to social welfare.
4. It leads to employment of women in industry leading to children being left without care or simply maternal care.
Neoclassical Theory The neoclassical theory of economic growth began its career in the fifties and since the mid fifties a sizeable literature has developed. The theory largely
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