Thursday, July 4, 2013

Boundaries of economics: Small is Beautiful

by E.F. Schumacher

A classic economics book published in 1973, Small is Beautiful has only become more relevant as globalization and pursuit of economic growth continues. His main point is that our current economy is unsustainable and he is particularly harsh on the field of economics. He brings about a great point regarding the capabilities and restriction of economic theory. 

If he remains unaware of the fact that there are boundaries to the applicability of the economic calculus, he is likely to fall into a similar kind of error to that of certain medieval theologians who tried to settle questions of physics by means of biblical quotations. Every science is beneficial within its proper limits but becomes evil and destructive as soon as it transgresses them.




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