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Ernst F. Schumacher Biography

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“It is quite wrong to assume that poor people are generally unwilling to change; but the proposed change must stand in some organic relationship to what they are doing already, and they are rightly suspicious of, and resistant to, radical changes proposed by town-based and office-bound innovators who approach them in the spirit of: "You just get out of my way and I shall show you how useless you are and how splendidly the job can be done with a lot of foreign money and outlandish equipment.”

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“It is an uncomfortable feeling, because the scientists never tire of telling us that the fruits of their labours are 'neutral': whether they enrich humanity or destroy it depends on how they are used. And who is to decide how they are used? There is nothing in the training of scientists and engineers to enable them to take such decisions, or else, what becomes of the neutrality of science?”

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“An industrial system which uses forty per cent of the world’s primary resources to supply less than six per cent of the world’s population could be called efficient only if it obtained strikingly successful results in terms of human happiness, well-being, culture, peace, and harmony. I do not need to dwell on the fact that the American system fails to do this, or that there are not the slightest prospects that it could do so if only it achieved a higher rate of growth of production, associated, as it must be, with an even greater call upon the world’s finite resources.”

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“Development does not start with goods; it starts with people and their education, organisation, and discipline. Without these three, all resources remain latent, untapped potential. . . . Here, then. lies the central problem of development. If the primary causes of poverty are deficiencies in these three respects, then the alleviation of poverty depends primarily on the removal of these deficiencies. Here lies the reason why development cannot be an act of creation. why it cannot be ordered, bought, comprehensively planned: why it requires a process of evolution.”

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“The beginning of wisdom is the admission of one’s own lack of knowledge. As long as we think we know, when in fact we do not, we shall continue to go to the poor and demonstrate to them all the marvellous things they could do if they were already rich. This has been the main failure of aid to date.”

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“No-one can start at [the modern] level. This means that no-one can do anything at this level unless he is already established. . . . At this level no creations are possible, only extensions, and this means that the poor are more dependent on the rich than ever before in human history.”

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“Centralisation is mainly an idea of order; decentralisation, one of freedom. . . . Order requires intelligence and is conducive to efficiency; while freedom calls for. and opens the door to, intuition and leads to innovation. The larger an organisation, the more obvious and inescapable is the need for order. But if this need is looked after with such efficiency and perfection that no scope remains for man to exercise his creative intuition, for entrepreneurial disorder, the organisation becomes moribund and a desert of frustration.”

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“It is no accident that successful businessmen are often astonishingly primitive; they live in a world made primitive by this process of [reducing everything to the question of profit]. They fit into this simplified version of the world and are satisfied with it. And when the real world occasionally makes its existence known and attempts to force upon their attention a different one of its facets, one not provided for in their philosophy, they tend to become quite helpless and confused. They feel exposed to incalculable dangers and ‘unsound’ forces and freely predict general disaster. As a result, their judgments on actions dictated by a more comprehensive outlook on the meaning and purpose of life are generally quite worthless. It is a foregone conclusion for them that a different scheme of things, a business, for instance, that is not based on private ownership, cannot possibly succeed. If it succeeds all the same, there must be a sinister explanation.”

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“The strength of the idea of private enterprise lies in its terrifying simplicity. It suggests that the totality of life can be reduced to one aspect—profits. The businessman, as a private individual, may still be interested in other aspects of life—perhaps even in goodness, truth and beauty—but as a businessman he concerns himself only with profits. . . . It is no accident that successful businessmen are often astonishingly primitive; they live in a world made primitive by this process of reduction. They fit into this simplified version of the world and are satisfied with it. And when the real world occasionally makes its existence known and attempts to force upon their attention a different one of its facets, one not provided for in their philosophy, they tend to become quite helpless and confused. They feel exposed to incalculable dangers and ‘unsound’ forces and freely predict general disaster. As a result, their judgments on actions dictated by a more comprehensive outlook on the meaning and purpose of life are generally quite worthless. It is a foregone conclusion for them that a different scheme of things, a business, for instance, that is not based on private ownership, cannot possibly succeed. If it succeeds all the same, there must be a sinister explanation.”

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“The modern private enterprise system ingeniously employs the human urges of greed and envy as its motive power. . . . Greed and envy demand continuous and limitless economic growth of a material kind, without proper regard for conservation, and this type of growth cannot possibly fit into a finite environment.”

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“If the Gross National Product of the United Kingdom grew by, say, five per cent . . . could we then use all or most of this money, this additional wealth. to fulfil our nation’s aspirations? Assuredly not; for under private ownership every bit of wealth, as it arises, is immediately and automatically privately appropriated.”

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“In the current vocabulary of condemnation there are few words as final and conclusive as the word ‘uneconomic’. If an activity has been branded as uneconomic, its right to existence is not merely questioned but energetically denied. Anything that is found to be an impediment to economic growth is a shameful thing, and if people cling to it, they are thought of as either saboteurs or fools. Call a thing immoral or ugly, soul- destroying or a degradation of man, a peril to the peace of the world or to the well-being of future generations: as long as you have not shown it to be ‘uneconomic’ you have not really questioned its right to exist, grow, and prosper.”

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“It is a great error to assume . . . that the methodology of economics is normally applied to determine whether an activity carried on by a group within society yields a profit to society as a whole. Even nationalised industries are not considered from this more comprehensive point of view. Every one of them is given a financial target—which is, in fact, an obligation—and is expected to pursue this target without regard to any damage it might be inflicting on other parts of the economy.”

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“To the extent that economic thinking is based on the market, it takes the sacredness out of life, because there can be nothing sacred in something that has a price. Not surprisingly, therefore, if economic thinking pervades the whole of society, even simple non-economic values like beauty, health, or cleanliness can survive only if they prove to be ‘economic’.”

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