conclusive as the word 'uneconomic'."
Looking at historical aspects of economics. Dr. Schumacher explains how economics has come to assume the dominant position that it has in our society, and how this overlooks the partial and fragmentary nature of economic judgements. In particular, he criticises the aversion of modern economic theory to any acknowledgement of qualitative differences.
As an example of this, he gives an analysis of the "fundamental and vital differences between various categories of 'goods'" which current economic theory persists in treating as being of equal significance; his analysis is given in the following diagram:
goods
primary secondary
non-renewable renewable manufactures services
(1) (2) (3) (4)
The importance of such a qualitative distinction can be seen if we take the case of fossil fuels ( category 1 ). Because of a refusal of economists to accept any qualitative distinctions, fossil fuels are just another commodity; it is overlooked that "we are treating them as income items although they are undeniably capital items".
Other chapters of the book deal with the economics of size, the proper use of land, nuclear energy, social and economic problems in the Third World, and aspects of organisation and ownership.
This book is, in my opinion, a welcome refutation of the often exaggerated claims made of economics; it seriously questions the pervasive reduction of values to economic worth; it shows how economics can be restored to the status of a useful tool, once we have ceased to ascribe to economic judgements the impartial objectivity of an unseen god.