Environmental Quality and Economic Development

Abstract

In recent years, considerable progress has been made in reducing both air and water pollution in the United States. The cost of clean-up was not critical during this period, when large gains could be made at relatively low cost; but the Law of Diminishing Returns is at work. We have entered the phase where small incremental improvements are inordinately costly. Government estimates indicated that in 1977 the environmental laws cost each American family $600, and that by 1986 the cost per family will be $1300 (in 1977 dollars). The family will receive little or no health benefit from this additional money, but will have less to spend for food, shelter, and medical care. Today we see a growing awareness in both Congress and the Administration that the billions of dollars spent on environmental overcontrol will add to inflation, retard economic development, and inhibit job formation. The urgent need is for the people—the families who must carry the cost burden—to communicate their concern to their representatives in Washington.