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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.” — Ernst F. Schumacher
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.