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Ernst F. Schumacher

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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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
There are poor societies which have too little: but where is the rich society that says: ‘Halt! We have enough’? There is none.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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?
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Private enterprise is not concerned with what it produces but only with what it gains from production.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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’.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
The future counts as nothing compared with the slightest economic gain now.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Never has science been more triumphant; never has man’s power over his environment been more complete nor his progress faster. It cannot be a lack of know-how that causes [our] despair. . . . We know how to do many things, but do we know what to do?
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Man cannot live without science and technology any more than he can live against nature. What needs the most careful consideration, however, is the direction of scientific research. We cannot leave this to the scientists alone.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
The prestige carried by people in modern industrial society varies in inverse proportion to their closeness to actual production.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
A man is destroyed by the inner conviction of uselessness. No amount of economic growth can compensate for such losses.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
There are poor societies which have too little: but where is the rich society that says: ‘Halt! We have enough’? There is none.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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?
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Private enterprise is not concerned with what it produces but only with what it gains from production.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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’.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
The future counts as nothing compared with the slightest economic gain now.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Never has science been more triumphant; never has man’s power over his environment been more complete nor his progress faster. It cannot be a lack of know-how that causes [our] despair. . . . We know how to do many things, but do we know what to do?
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Man cannot live without science and technology any more than he can live against nature. What needs the most careful consideration, however, is the direction of scientific research. We cannot leave this to the scientists alone.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
The prestige carried by people in modern industrial society varies in inverse proportion to their closeness to actual production.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
A man is destroyed by the inner conviction of uselessness. No amount of economic growth can compensate for such losses.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
There are poor societies which have too little: but where is the rich society that says: ‘Halt! We have enough’? There is none.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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?
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Private enterprise is not concerned with what it produces but only with what it gains from production.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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’.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
The future counts as nothing compared with the slightest economic gain now.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Never has science been more triumphant; never has man’s power over his environment been more complete nor his progress faster. It cannot be a lack of know-how that causes [our] despair. . . . We know how to do many things, but do we know what to do?
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
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.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
Man cannot live without science and technology any more than he can live against nature. What needs the most careful consideration, however, is the direction of scientific research. We cannot leave this to the scientists alone.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
The prestige carried by people in modern industrial society varies in inverse proportion to their closeness to actual production.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness
A man is destroyed by the inner conviction of uselessness. No amount of economic growth can compensate for such losses.
From Small Is Beautiful: Economics as if People Mattered
NOT YET RATING ▼
Topic: Happiness