Small Is Beautiful - E F Schumacher

Small is Beautiful - E F Schumacher
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SMALL IS BEAUTIFUL
E. F. SCHUMACHER
Few can contemplate without a sense of exhilaration the splendid achievements of practical energy and technical skill, which, from the latter part of the seventeenth century, were transforming the face of material civilisation, and of which England was the daring, if not too scrupulous, pioneer. if however, economic ambitions are good servants, they are bad masters. The most obvious facts are most easily forgotten. Both the existing economic order and too many of the projects advanced for reconstructing it break down through their neglect of the truism that, since even quite common men have souls, no increase in material wealth will compensate them for arrangements which insult their self-respect and impair their freedom. A reasonable estimate of economic organisation must allow for the fact that, unless industry is to be paralysed by recurrent revolts on the part of
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Part One THE MODERN WORLD
One The Problem of Production One of the most fateful errors of our age is the belief that 'the problem of production' has been solved. Not only is this belief firmly held by people remote from production and therefore professionally unacquainted with the facts - it is held by virtually all the experts, the captains of industry, the economic managers in the governments of the world, the academic and notso-academic economists, not to mention the economic journalists. They may disagree on many things but they all agree that the problem of production has been solved; that mankind has at last come of age. For the rich countries, they say, the most important task now is 'education for leisure' and, for the poor countries. the 'transfer of technology', That things are not going as well as they ought to be going must be due to human wickedness. We must therefore construct a political system so perfect that human wickedness disappears and everybody behaves well, no matter how much wickedness there may be in him or her. In fact, it is widely held that everybody is born good; if one turns into a criminal or an exploiter, this
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possibility of total victory into view. This has now come into view, and many people, albeit only a minority, are beginning to realise what this means for the continued existence of humanity. The illusion of unlimited power, nourished by astonishing scientific and technological achievements, has produced the concurrent illusion of having solved the problem of production. The latter illusion is based on the failure to distinguish between income and capital where this distinction matters most. Every economist and businessman is familiar with the distinction, and applies it conscientiously and with considerable subtlety to all economic affairs - except where it really matters - namely, the irreplaceable capital which man had not made, but simply found, and without which he can do nothing. A businessman would not consider a firm to have solved its problems of production and to have achieved viability if he saw that it was rapidly consuming its capital. How, then, could we overlook this vital fact when it comes to that very big firm, the economy of Spaceship Earth and, in particular. the economies of its rich passengers? One reason for overlooking this vital fact is that we are estranged from reality and inclined to treat as valueless everything that we have not made ourselves. Even the great Dr Marx fell into this devastating error when he formulated the so-called 'labour theory of value'. Now, we have indeed laboured to make some of the capital which today helps us to produce - a large fund of scientific, technological, and other knowledge; an elaborate
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Small Is Beautiful - E F Schumacher

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What are some of the main arguments made in the book?

What are some of the main arguments made in the book?

What is the author's view on the problem of production?

What is the author's view on the problem of production?

Small is Beautiful - E F Schumacher

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