Net Economic Welfare

Net Economic Welfare (NEW):

Samuelson has coined the notion of Net Economic Welfare. “According to Samuelson, “Net Economic Welfare (i.e., NEW) is an adjusted measure of net national output which comprises only consumption and investment items which contribute directly to the economic welfare”.

Since we become rich, usually, we prefer leisure to income. Whenever we allocate more time for leisure, gross national product (i.e., GNP) might come down. However welfare goes up. Therefore whenever we estimate GNP, we should include satisfaction, derived from leisure by providing it a value in Net Economic Welfare.

Women do a lot of work at home and it is not taken into account while computing GNP. However we should comprise that while estimating GNP. Only then, we will get an accurate picture of NEW.

In any society, there will be several illegal activities. (Example, drug trade). We must not comprise it in NEW. They are “social bads”

There are some underground activities. Those who earn enormous incomes (Example lawyers, accountants, & actors) might not report real income for tax purposes.

This unaccounted money (i.e., black money) should somehow be involved in GNP estimates. Or else, we will acquire a lower figure for GNP.

During the procedure of economic growth, there will be ecological pollution. To acquire NEW, we must deduct the cost of pollution from G.N.P.

The idea of Net Economic Welfare has become very significant in the study of National Income.

 

Latest technology based Economics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Nature and Scope of Economics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Nature and Scope of Economics, project ideas and tutorials. We provide email based Nature and Scope of Economics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Nature and Scope of Economics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of the Economics assignments, which may help you to solve your complex issues of Nature and Scope of Economics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.