Small is Beautiful |
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Small is Beautiful - A study of economics as if people mattered, by Ernst F. Schumacher (1973)
Small is Beautiful deals with many of the metaphysical assumptions of economic theory that are usually neglected. The basic points of the book can be described as the fault of assumed universality of knowledge and the single-mindedness in pursuing certain values. To begin with the single-mindedness: Schumacher describes the way in which companies pursue wealth and progress without taking into account other values. The focus is on economic activity which deals with the short term instead of long term, quantities instead of qualities, means instead of ends, and market values instead of intrinsic values. These 19th century principles are not capable of dealing with present-day challenges. In a world where many problems consist of trying to reconcile opposites, of dealing with dilemmas, the so-called divergent problems, one cannot use principles that are intended to solve convergent problems, problems that can be solved by one answer, one solution, one truth. Furthermore, the problem is that the boundaries to the applicability of these economic principles are neglected, they are taken to be universal. When the principles are learned and used, one should be aware of the underlying assumptions and presuppositions, the meaning they have and their place in reality. This knowledge is often lacking according to Schumacher. One of the solutions he carries forward is education. Not education as transmission of know-how, of how to do things, but as transmission of values, of knowledge about to what ends this know-how should be used. We know how to do many things, but do we know what to do? People need more knowledge and values for making the world more intelligible and meaningful.
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