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Small Is Beautiful, by E F Schumacher
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The classic of common-sense economics. "Enormously broad in scope, pithily weaving together threads from Galbraith and Gandhi, capitalism and Buddhism, science and psychology."-- The New Republic
- Sales Rank: #1855318 in Books
- Published on: 1973
- Number of items: 1
- Binding: Paperback
- 290 pages
Most helpful customer reviews
6 of 35 people found the following review helpful.
Fantasy Economics
By Acute Observer
I received this book as a gift, and found it unreadable. For example, EFS says cost/benefit analysis "is a procedure by which the higher is reduced to the level of the lower and the priceless is given a price". This is meaningless rhetoric to me. It also assumes that only economics provides a guide to human behavior. Or that all economic analysis is totally rational. Schumacher questioned every assumption of "economic science" using theories from the anarchist tradition. Schumacher claimed neocolonialism is the result of politics, not economic principles. But doesn't class and sectional interests drive politics? His advocacy of a search for inward spiritual space, and a rejection of the real world of politics and economics, makes this book part of the problem and not part of the solution.
The 'Introduction' says Gandhi wanted to use "labor-intensive manufacture and handicrafts" (p.5). Milovan Djilas said it was important for newly liberated countries to use mass production ("The New Class"). The historical record over the past centuries should tell you who was right or wrong. Liberating revolutions result in more production and other benefits for the people; else they're not liberating. Unlimited economic growth overlooks the availability of basic resources and the capacity of the environment. But there's always some natural problem that causes a correction.
This is a very verbose book whose arguments rest on unquestioned assumptions. Since it was published in 1973 Thatcher's regime destroyed Britain's coal industry to make them dependent on imported oil and gas. We've seen what happened after they divided and privatized the railroads. But who benefited from these political decisions?
Part II Chapter 3 notes that western Europe "deliberately destroyed nearly half of their coal industries". But the economy in neocolonialist countries will always suffer to benefit the imperialist ruling country. American was a net petroleum exporter until 1967, and influenced Saudi Arabia and Iran (just like Great Britain did previously). You can also consider the actions of Jimmy Carter against nuclear reactors. France and Japan use nuclear power, they have no oil. Saudi Arabia uses nuclear power so they can profitably sell their oil abroad. Those who criticized this book showed good judgment and wisdom. You can read this book and judge its worth for yourself.
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