Social common capital provides members of society with those
services and institutional arrangements that are crucial in
maintaining human and cultural life. The term "social common
capital" is comprised of three categories: natural capital, social
infrastructure, and institutional capital. Natural capital consists
of all natural environment and natural resources including the
earth's atmosphere. Social infrastructure consists of roads,
bridges, public transportation systems, electricity, and other
public utilities. Institutional capital includes hospitals,
educational institutions, judicial and police systems, public
administrative services, financial and monetary institutions, and
cultural capital. This book attempts to modify and extend the
theoretical premises of orthodox economic theory to make them broad
enough to analyze the economic implications of social common
capital. It further aims to find the institutional arrangements and
policy measures that will bring about the optimal state of affairs
in which the natural and institutional components are blended
together harmoniously to realize the sustainable state as suggested
by John Stuart Mill.
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