Tuesday 6 January 2015

The Real Deal

If Keynes says that "foul is useful and fair is not," he propounds a statement of fact which may be true or false; or it may look true in the short run and turn out to be false in the longer run. Which is it?

I should think that there is now enough evidence to demonstrate that the statement is false in a very direct, practical sense. If human vices such as greed and envy are systematically cultivated, the inevitable result is nothing less than a collapse of intelligence. A man driven by greed or envy loses the power of seeing things in their roundness and wholeness, and his very successes become failures. If whole societies become infected by these vices, they may indeed achieve astonishing things but they become increasingly incapable of solving the most elementary problems of everyday existence. The Gross National Product may rise rapidly; as measured by statisticians but not as experienced by actual people, who find themselves oppressed by increasing frustration, alienation, insecurity, and so forth. After a while, even the Gross National Product refuses to rise any further, not because of scientific or technological failure, but because of a creeping paralysis of non-cooperation, as expressed in various types of escapism on the part, not only of the oppressed and exploited, but even of highly privileged groups.

Small is Beautiful, EF Schumacher

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