How does the economic theories impact on the social welfare development?

Answer:
Generally, economic theories of all types and ideology have three principle effects on social welfare: 1) the total amount of wealth in that society; 2) the institutions, methods, and production which that wealth is invested in; 3) the distribution of that wealth amongst society's members. Economic theories propose and define how resources are organised to produce desired outcomes. With these outcomes, theories define what powers or methods will control or invest this wealth. Finally, the theories determine what obligations society has to its members and how these obligations are met. In terms of development, theories differ greatly because they advocate different methods, institutions, and distributions of income - all of which affect how a society develops economically.
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