Small Is Beautiful: A Study of Economics as if People Mattered (3 page)

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Authors: E F Schumacher

Tags: #MacRoeconomics, #Economics, #Political Science, #Philosophy, #Aesthetics, #Environmental Policy, #Microeconomics, #Public Policy, #Business & Economics

BOOK: Small Is Beautiful: A Study of Economics as if People Mattered
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'haves' and 'have-nets' along entirely novel lines. The specially favoured areas, such as the Middle East and North Africa, would attract envious attention on a scale scarcely imaginable today, while some high consumption areas, such as Western Europe and Japan, would move into the unenviable position of residual legatees. Here is a source of conflict if ever there was one.

As nothing can be proved about the future - not even about the relatively short-term future of the next thirty years - it is always possible to dismiss even the most threatening problems with the suggestion that something will turn up. There could be simply enormous and altogether unheard-of discoveries of new reserves of oil, natural gas, or even coal. And why should nuclear energy be confined to supplying one-quarter or one-third of total requirements? The problem can thus be shifted to another plane, but it refuses to go away. For the consumption of fuel on the indicated scale -

assuming no insurmountable difficulties of fuel supply - would produce environmental hazards of an unprecedented kind, Take nuclear energy. Some people say that the world's re sources of relatively concentrated uranium are insufficient to sustain a really large nuclear programme - large enough to have a significant impact on the world fuel situation, where we have to reckon with thousands of millions, not simply with millions, of tons of coal equivalent. But assume that these people are wrong. Enough uranium will be found; it will be gathered together from the remotest corners of the earth, brought into the main centres of population, and made highly radioactive. It is hard to imagine a greater biological threat, not to mention the political danger that someone might use a tiny bit of this terrible substance for purposes not altogether peaceful.

On the other hand, if fantastic new discoveries of fossil fuels should make it unnecessary to force the pace of nuclear energy, there would be a problem of thermal pollution on quite a different scale from anything encountered hitherto.

Whatever the fuel, increases in fuel consumption by a factor of four and then five and then six... there is no plausible answer to the problem of pollution.

I have taken fuel merely as an example to illustrate a very simple thesis: that economic growth, which viewed from the point of view of economics, physics, chemistry and technology, has no discernible limit. must necessarily run into decisive bottlenecks when viewed from the point of view of the environmental sciences. An attitude to life which seeks fulfilment in the single-minded pursuit of wealth - in short, materialism - does not fit into this world, because it contains within itself no limiting principle, while the environment in which it is placed is strictly limited. Already, the environment is trying to tell us that certain stresses are be coming excessive.

As one problem is being 'solved'. ten new problems arise as a result of the first 'solution'. As Professor Barry Commoner emphasises, the new problems are not the consequences of incidental failure but of technological success.

Here again, however, many people will insist on discussing these matters solely in terms of optimism and pessimism, taking pride in their own optimism that 'science will find a way out'. They could be right only, I suggest, if there is a conscious and fundamental change in the direction of scientific effort The developments of science and technology over the last hundred years have been such that the dangers have grown even faster than the opportunities. About this, I shall have more to say later Already, there is overwhelming evidence that the great self- balancing system of nature is becoming increasingly unbalanced in particular respects and at specific points. It would take us too far if I attempted to assemble the evidence here. The condition of Lake Erie, to which Professor Barry Commoner, among others, has drawn attention, should serve as a sufficient warning. Another decade or two, and all the inland water systems of the United Stats may be in a similar condition. In other words, the condition of unbalance may then no longer apply to specific points but have become generalised. The further this process is allowed to go, the more difficult it will be to reverse it, if indeed the point of no return has not been passed already.

We find, therefore, that the idea of unlimited economic growth, more and more until everybody is saturated with wealth, needs to be seriously questioned on at least two counts: the availability of basic resources and, alternatively or additionally, the capacity of the environment to cope with the degree of interference implied. So much about the physical-material aspect of the matter. Let us now turn to certain non-material aspects.

There can be no doubt that the idea of personal enrichment has a very strong appeal to human nature. Keynes, in the essay from which I have quoted already, advised us that the time was not yet for a 'return to some of the most sure and certain principles of religion and traditional virtue - that avarice is a vice, that the exaction of usury is a misdemeanour, and the love of money is detestable'.

Economic progress, he counselled, is obtainable only if we employ those powerful human drives of selfishness, which religion and traditional wisdom universally call upon us to resist. The modern economy is propelled by a frenzy of greed and indulges in an orgy of envy, and these are not accidental features but the very causes of its expansionist success. The question is whether such causes can be effective for long or whether they carry within themselves the seeds of destruction. If Keynes says that 'foul is useful and fair is net', he propounds a statement of fact which may be true or false; or it may look true in the short run and turn out to be false in the longer run.

Which is it?

I should think that there is now enough evidence to demonstrate that the statement is false ill a very direct, practical sense. If human vices: such as greed and envy are systematically cultivated, the inevitable result is nothing less than a collapse of intelligence. A man driven by greed or envy loses the power of seeing things as they really are, of seeing things in their roundness and wholeness, and his very successes become failures. If whole societies become infected by these vices, they may indeed achieve astonishing things but they become increasingly incapable of solving the most elementary problems of everyday existence. The Gross National Product may rise rapidly: as measured by statisticians but not as experienced by actual people, who find themselves oppressed by increasing frustration, alienation, insecurity, and so forth. After a while. even the Gross National Product refuses to rise any further, not because of scientific or technological failure, but because of a creeping paralysis of non-co-operation, as expressed in various types of escapism on the part, not only of the oppressed and exploited, but even of highly privileged groups.

One can go on for a long time deploring the irrationality and stupidity of men and women in high positions or low - 'if only people would realise where their real interests lie!' But why do they not realise this? Either because their intelligence has been dimmed by greed and envy, or because in their heart of hearts they understand that their real interests lie somewhere quite different, There is a revolutionary saying that 'Man shall not live by bread alone but by every word of God'.

Here again, nothing can be 'proved'. But does it still look probable or plausible that the grave social diseases infecting many rich societies today are merely passing phenomena which an able government - if only we could get a really able government! - could eradicate by simply making faster use of science and technology or a more radical use of the penal system?

I suggest that the foundations of peace cannot be laid by universal prosperity, in the modem sense. because such prosperity, if attainable at all.

is attainable only by cultivating such drives of human nature as greed and envy, which destroy intelligence, happiness, serenity, and thereby the peacefulness of man. It could well be that rich people treasure peace more highly than poor people. but only if they feel utterly secure - and this is a contradiction in terms. Their wealth depends on making inordinately large demands on limited world resources and thus puts them on an unavoidable collision course - not primarily with the poor (who are weak and defenceless) but with other rich people,

In short we can say today that man is far too clever to be able to survive without wisdom. No-one is really working for peace unless he is working primarily for the restoration of wisdom. The assertion that 'foul is useful and fair is not' is the antithesis of wisdom. The hope that the pursuit of goodness and virtue can be postponed until we have attained universal prosperity and that by the single minded pursuit of wealth, without bothering our heeds about spiritual and moral questions. we could establish peace on earth is an unrealistic, unscientific. and irrational hope, The exclusion of wisdom from economics, science. and technology was something which we could perhaps get away with for a little while. as long as we were relatively unsuccessful; but now that we have become very successful. the problem of spiritual and moral truth moves into the central position.

From an economic point of view, the central concept of wisdom is permanence. We must study the economics of permanence. Nothing makes economic sense unless its continuance for a long time can be projected without running into absurdities. There can be 'growth' towards a limited objective. but there cannot be unlimited. generalised growth. It is more than likely, as Gandhi said, that 'Earth provides enough to satisfy~ every man's need, but not for every man's greed'. Permanence is incompatible with a predatory attitude which rejoices in the fact that 'what were luxuries for our fathers have become necessities for us',

The cultivation and expansion of needs is the antithesis of wisdom. It is also the antithesis of freedom and peace, Every increase of needs tends to increase one's dependence on outside forces over which one cannot have control, and therefore increases existential fear. Only by a reduction of needs can one promote a genuine reduction in those tensions which are the ultimate causes of strife and war.

The economics of permanence implies a profound reorientation of science and technology, which have to open their doors to wisdom and, in fact, have to incorporate wisdom into their very structure. Scientific or technological

'solutions' which poison the environment or degrade the social structure and man himself are of no benefit, no matter how brilliantly conceived or how great their superficial attraction. Ever bigger machines, entailing ever bigger concentrations of economic power and exerting ever greater violence against the environment, do not represent progress: they are a denial of wisdom.

Wisdom demands a new orientation of science and technology towards the organic. the gentle, the non-violent, the elegant and beautiful. Peace, as has often been said, is indivisible - how then could peace be built on a foundation of reckless science and violent technology? We must look for a revolution in technology to give us inventions and machines which reverse the destructive trends now threatening us all.

What is it that we really require from the scientists and technologists? I should answer: We need methods and equipment which are

- cheap enough so that they are accessible to virtually everyone:

- suitable for small-scale application; and

- compatible with man's need for creativity.

Out of these three characteristics is tom non-violence and a relationship of man to nature which guarantees permanence. If only one of these three is neglected, things are bound to go wrong. Let us look at them one by one, Methods and machines cheap enough to be accessible to virtually everyone

- why should we assume that our scientists and technologists are unable to develop then? This was a primary concern of Gandhi: 'I want the dumb millions of our land to be healthy and happy, acid I want them to grow spiritually.... If we feel the need of machine, we certainly will have them.

Every machine that helps every individual has a place,' he said, ‘but there should be no place for machines that concentrate power in a few hands and turn the masses into mere machine minders, if indeed they do not make them unemployed.'

Suppose it becomes the acknowledged purpose of inventors and engineers, observed Aldous Huxley, to provide ordinary people with the means of

'doing profitable and intrinsically significant work, of helping men and women to achieve independence from bosses, so that they may become their own employers, or members of a self-governing, co-operative group working for subsistence and a local market ... this differently orientated technological progress (would result in) a progressive decentralisation of population, of accessibility of land, of ownership of the means of production, of political and economic power'. Other advantages, said Huxley, would be 'a more humanly satisfying life for more people, a greater measure of genuine self-governing democracy and a blessed freedom from the silly or pernicious adult education provided by the mass producers of consumer goods through the medium of advertisements'.'

If methods and machines are to be cheap enough to be generally accessible, this means that their cost must stand in some definable relationship to the level of incomes in the society in which they are to be used. I have myself come to the conclusion that the upper limit for the average amount of capital investment per workplace is probably given by the annual earnings of an able and ambitious industrial worker. That is to say, if such a man can normally earn, say, 5,000 a year, the average cost of establishing his workplace should on no account be in excess of $5,000. If the cost is significantly higher, the society in question is likely to run into serious troubles, such as an undue concentration of wealth and power among the privileged few: an increasing problem of 'drop-outs' who cannot be integrated into society and constitute an ever-growing threat; 'structural'

unemployment: mal- distribution of the population due to excessive urbanisation; and general frustration and alienation, with soaring crime rates.

and so forth.

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