Man's failure to recognize capital provided by nature is resulting in reckless economic policy

Insights from the economist EF Schumacher's book,"Small is Beautiful"

Insight #1: The problem of production has NOT really been solved in our leading economies?

Schumacher points out that most economists and planners are delusional in concluding that mankind has come of age because it can produce almost everything it needs.

Man's Attitude to Nature has changed: He points out that this delusion emerges from a shift in mans attitude to nature over the last three or four hundred years. "Man no longer sees himself as part of nature" but rather as an outside force destined to dominate it. Man has forgotten that if he wins the battle with nature he will find his own existence threatened.

This illusion of power and technology has resulted in the belief that man can produce whatever he wants.

We fail to distinguish between income and capital. We are not paying attention to the loss of irreplaceable capital provided by mother nature. The economies of our developed nations are consuming environmental capital, often to produce items of little consequence to human well being.

Our enterprises and governments treat fossil fuels, minerals etc. as income items even though they should be seen as irreplaceable capital. Money realized from these assets should really be set aside to develop production methods and living patterns that reduce reliance on these capital assets.