Tag Archives: economics

E.F. Schumacher on Natural Capital

To press non-economic values into the framework of the economic calculus, economists use the method of cost/benefit analysis. This is generally though to be an enlightened and progressive development, as it is at least an attempt to take account of benefits which might otherwise be disregarded altogether. In fact, however, it is a procedure by which the higher is reduced to the level of the lower and the priceless is given a price. It can therefore never serve to clarify the situation and lead to an enlightened decision. All it can do is lead to self-deception or the deception of others; for to undertake to measure the immeasurable is absurd and constitutes but an elaborate method of moving from preconceived notions to foregone conclusions…The logical absurdity, however, is not the greatest fault of the undertaking: what is worse, and destructive of civilisation, is the pretence that everything has a price or, in other words, that money is the highest of all values.

– Small Is Beautiful: A Study of Economics as if People Mattered (Page 31), E.F. Schumacher