Resources for Industry Schumacher, E.F., Small Is Beautiful Economics as if People Mattered - Nothing is unlimited in this finite world.

This article relates the industrialization process, the economic-growth and the limits of the raw material consumption due to the process. It stresses the fact that modern economists view the consumption of the natural resources will not give up early. It was also stressed out in Schumachers previous article on the problems of production where energy (or the natural resources) is treated as income than as irreplaceable capital. The resources consumed through the process are limited, opposing to what modern economists say. One of the resources that had been abused until this day is energy. The consumption as it grows will also bring about high prices and although nuclear energy may replace fossil fuels, it is still costly and the whole development of industrialization is still dependent on fossil fuels. It is pointed out that assumptions are pernicious practice and lead to the most colossal planning errors, because it offers a bogus answer where, in fact, an entrepreneurial judgment is required. This error should be corrected and as a whole, there is no assurance to what the future holds because of unforeseen factors affecting the stability of the availability of the natural resources made essential to the development of economic growth. I will quote a phrase as it was stressed out also: If a high-growth economy is needed to fight the battle against pollution, which itself appears to be the result of high growth, what hope is there of ever breaking out of this extraordinary circle? In any case, the question needs to be asked whether the earths resources are likely to be adequate for the further development of an industrial system that consumes so much and accomplishes so little. If pollution was produced by economic growth, it is rather wrong to state it that way. Professor Heller have not internalized on that action-reaction fact since he have seen the problem differently. It is also unfair for a few to avail of so much when so many have so little. The gap causes the destruction of peace and permanence and this will lead to other problems and it all goes back in to the circle that leads production to decline and economic growth poor. What approach or method did the author use to convey the main points? Schumacher quoted the lectures and statements of prominent people in economics and technology. The disparity of their views to those that favor permanence shows the causes of further dilemma in economics. It all boils down to the same problem as any problem boiled from, greed and pride. There is a thin line between greed and economic growth and differs only in will and goals. The problem is that humans are susceptible to temptations because it is a material world after all. To keep ones composure and good-will will give time a chance to rid off greed and take care of peace and permanence and with that sustain economic growth and fix the problems of production.

Submitted by: Arda, Anamae S. BSEC-5