The real problems of our planet are not economic or technical, they are philosophical. The philosophy of unbridled materialism is being challenged by events.
Economic policies absorb almost the entire attention of government, and at the same time become ever more impotent. The simplest things, which only fifty years ago one could do without difficulty, cannot get done any more. The richer a society, the more impossible it become to do worthwhile things without immediate payoff.
Interpretation
What this quote means
Economic policies often dominate government focus, leading to inefficiencies and an inability to accomplish simple tasks as society becomes wealthier.
E. F. Schumacher's quote reflects on how the focus of government on complex economic policies can lead to a paradox where, despite the wealth of a society, simple and worthwhile tasks become increasingly difficult to achieve. He suggests that as societies grow richer, they often lose sight of the intrinsic value of actions that do not yield immediate financial returns, leading to a disconnect between economic success and meaningful progress.
Themes
In practice
Example use cases
In a discussion about the challenges faced by modern governments in addressing simple societal needs.
More from E. F. Schumacher
All quotes →The substance of man cannot be measured by Gross National Product.
The printing press is either the greatest blessing or the greatest curse of modern times, sometimes one forgets which it is.
By means of trees, wildlife could be conserved, pollution decreased, and the beauty of our landscapes enhanced. This is the way, or at least one of the ways, to spiritual, moral, and cultural regeneration.
We still have to learn how to live peacefully, not only with our fellow men but also with nature and, above all, with those Higher Powers which have made nature and have made us; for, assuredly, we have not come about by accident and certainly have not made ourselves
The heart of the matter, as I see it, is the stark fact that world poverty is primarily a problem of two million villages, and thus a problem of two thousand million villagers.
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Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion - the technique of the army and of the modern totalitarian state. The other is voluntary cooperation of individuals - the technique of the marketplace.
If you want a simple model for predicting the unemployment rate in the United States over the next few years, here it is: It will be what Greenspan wants it to be, plus or minus a random error reflecting the fact that he is not quite God.
It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with 'free banking.' The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.
You have to remember: what are incomes to banks are outgoes to families.
We can no longer prosper by increasing human productivity. The more we try to do, the more poverty we will create.
Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.