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.
“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.”
Meaning Behind This Quote
The quote critiques the common practice in economics of prioritizing financial targets without considering the broader societal impacts. Schumacher argues that even state-run industries focus narrowly on profit obligations, often overlooking the negative effects these pursuits can have on the overall economy. This approach leads to a fragmented view of economic activity, where the interconnectedness of various sectors is ignored. Profit is pursued at the expense of social and environmental well-being. As a result, the quote emphasizes the need for a more holistic understanding of economic activities that considers their implications for society as a whole. It challenges us to rethink how we measure success in economic terms, advocating for a mindset that values sustainability and social responsibility alongside financial gain.
How to Apply This Quote in Your Life
💡 Reflect: Take a moment to consider how “It is a great error to assume . . . that the metho...” by Ernst F. Schumacher relates to your current situation.
📝 Journal: Write down one specific way you can embody this happiness quote today. Setting an intention makes it actionable.
🔄 Share: Inspire someone else by sharing this quote. Meaningful words multiply when passed on.