It is bad policy long term, and this policy has been around for a long time. At some point we need to address bad policy.
And yes, over and over this was the desireded goal, I remember the election campaigns, the speeches, the white papers, the think tanks.
This has mostly been a success, looking at many such countries. The standard of living has gone up, for example China now has a "middle class" of sorts.
Environmental concerns were not on the radar at the time, not 50 years ago, not like today.
The intentions were reasonably positive and well founded. Of course, I agree reassessment is necessary, and it really should always be.