— 
The environmental problems and the problem of raw materials 
and energy are indeed new , having arisen from the 
unprecedented growth rates of the post-war decades. 
There are two possible reactions to them:The first is 
the reduction of growth. This will, in fact,not be 
adequate, nor is it necessary. The second is the 
operation of xountermeasures ( based on norms for 
emission etc ) which cost money in form of investment as well 
as current cost. This second method will not impair 
t 
the maintenance of adequate effective demand and wpll 
impair growth of capacity and standard of living only 
to the extent to which investment funds and resources are 
absorbed by the environmental protection. 
These measures in the U.S. cost already a few percent of G.D,P. 
There is finally the problem of a growth of household 
saving which presses on profits and on the budget deficit, 
as I have already repeatedly argued elsewhere. It is 
connected with the distribution of personal income 
and with the fact that these savings do not in most cases 
find their way into the channel of direct investment 
in new businesses. 
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