Small is Beautiful Buchzusammenfassung - das Wichtigste aus Small is Beautiful

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Zusammenfassung von Small is Beautiful

Name: Small is Beautiful
Rating: 4 (58 reviews)
Author: E. F. Schumacher

E. F. Schumacher

A Study of Economics as if People Mattered

4 (58 Bewertungen)

17 Min.

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Internationale Wirtschaft

Inhaltsübersicht

Small is Beautiful
in 8 Kernaussagen verstehen

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Kernaussage 1 von 8

What’s in it for me? Discover how economics would look if people were taken into account.

In economic terms, is bigger really always better? Not according to the world-renowned economic thinker, E.F. Schumacher. On the contrary, he posited that “small is beautiful” and that economists should value life on earth over income and profit.

In these blinks, you’ll be presented with his critique of our modern Western economic system, which, according to him, depletes our resources and sucks the meaning out of our lives. Arguing that our economic system legitimizes greed and values money above all else, Schumacher’s essays are as relevant today as they ever were.

In these blinks, you’ll also learn

why universal prosperity wouldn’t lead to peace;
how growth can be destructive; and
that nuclear energy can spell ruination instead of salvation.

The modern economic system relies on depleting the Earth's natural resources.

Modern economic systems have brought great prosperity to the Western world; however, that prosperity came with a big price tag. Our lives are now so removed from nature that we constantly destroy it without compunction.

For instance, thanks to the global industrial system, we squander a great deal of our precious natural resources – such as fossil fuels. The modern economy treats fossil fuels as income, a constant stream of goods, rather than capital, a finite supply of goods. To thus regard them is a way of justifying waste.

If we viewed fossil fuels as capital rather than income we'd be much more concerned with their conservation. However, we use them as if they'll never run out – which, of course, they will.

It's not possible for humans to manufacture or recycle fossil fuels, so once they're gone, they're gone. And running out of them too quickly would threaten the very foundation of our modern economy, which requires a steady energy supply.

The modern economic system itself also threatens two types of natural capital: the tolerance margins of nature and the human substance.

Since World War II, the world has seen a dramatic increase in industrial production, which threatens the tolerance margins of nature. Our actions are harming the environment at a rate much greater than its natural rate of regeneration.

The economic system also devalues humans, who are reduced to little more than cogs in the economic machine. For instance, most people in the world don't find their work fulfilling and many spend their lives doing back-breaking labor.

Such problems threaten the foundation of the modern economy, too, because they threaten society as a whole. The economic machine can't sustain itself if the people who run it can't live.

Universal prosperity alone can't ensure lasting peace.

An examination of the history of economics and political stability reveals an interesting pattern: the rich tend to be more peaceful than the poor. So it would follow that economic equality and prosperity could provide the foundations for a peaceful world, right?

Let's consider this idea by examining three points:

The prevailing economic mentality values most highly those actions that are economic, at the expense of people and the environment.

There are a lot of common misconceptions about economic growth. Most people assume that it's always good if the GDP rises – but there is such a thing as unhealthy growth.

Those who think that economic growth is always good would have it that anything uneconomic is negative. Something is uneconomic if it doesn't generate a profit – and unprofitability is generally regarded as bad.

Education is the greatest of all resources – but only if it instills the right values.

History tells us that education is a key factor in economic development, that it's much more important than having access to natural resources. Furthermore, the belief in the power of education is deeply embedded in modern societies.

Today, a lot of people assume that societal progress relies on education. That's partly true, depending on what we teach. Education shouldn't just be about preparing young people to enter the job market – we have to instill in them the right values, too.

Nuclear energy could be mankind's most dangerous invention, but it's only debated in economic terms.

Fossil fuels are a limited resource, so we're soon going to need an alternative energy source. Many people felt that nuclear energy was the answer when it was first developed, especially because it seemed to have arrived just in time. Few understood, however, what nuclear energy could really do.

Nuclear radiation has become the greatest threat to life on earth, and the effects of nuclear radiation are well known. Radiation particles are like tiny bullets that tear into an organism; the damage they do depends on their nuclear dosage and the types of cells they hit.

Modern technology has deprived humans of the work we find most satisfying.

We tend to assume that further technological advances will always make our lives better. But modern technology has caused a number of societal crises, forcing us to call the value of technological progress into question.

In many ways, technology has deprived humans of the joys of work. After all, the purpose of technology is to make our lives easier. We've developed tools to help us survive, ostensibly so we can focus on other, more enjoyable tasks, but a lot of our technology has taken away the work we enjoy the most, such as crafting.

Developmental aid shouldn't consist of money alone, and it needs to be given primarily to rural areas.

Throughout the world, the poor are getting poorer and the rich are getting richer. That's part of the reason that wealthier countries send developmental aid to poor countries. True economic development, however, is a major challenge.

Why?

Large-scale organizations have to foster loyalty and find a healthy balance between order and creative freedom.

The business world has seen a trend toward more huge companies of scale. The deeper these mega-corporations penetrate into our society, the more individual people are devalued and reduced to pawns.

All organizations need some degree of structure, whether they're big or small, but they also need to be unstructured enough to allow room for creative freedom. If an organization falls into disorder, it won't accomplish any of its goals; if the rules are too strict, however, it will also suffer.

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Worum geht es in Small is Beautiful?

Small is Beautiful (1973) is a collection of essays by renowned British economist E. F. Schumacher outlining his critique of the Western economic system. First published in 1973, this classic collection, which is now considered to be one of the most influential books published since World War II, is as relevant today as it was in the ‘70s.

Bestes Zitat aus Small is Beautiful

Radioactive pollution is an evil of an incomparably greater dimension than anything mankind has known before.

—E. F. Schumacher

Wer Small is Beautiful lesen sollte

People interested in politics and economics
Mindful citizens who want to understand how our economic system affects the earth

Über den Autor

Ernst Friedrich Schumacher, the protégé of John Maynard Keynes, was a famed economist. From 1950 to 1970, he served as the Chief Economic Advisor to the UK National Coal Board.

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