-  
 
                      -  
 
                      - Buddhist 
                        Economics
 
                    
                  
                   
                     
                      - A 
                        Middle Way for the Market Place
 
                    
                  
                   
                     
                      - ...Ven. 
                        P. A. Payutto...
 
                    
                  
                  -  
 
                 
                 
                Chapter 
                  Three
                  
                Buddhist 
                  Perspectives on Economic Concepts
                The 
                  basic model of economic activity is often represented in economic 
                  textbooks thus: unlimited wants are controlled by scarcity; 
                  scarcity requires choice; choice involves an opportunity cost 
                  (i.e., choosing one means foregoing the other); and the final 
                  goal is maximum satisfaction.[1] The fundamental 
                  concepts occurring in this model -- want, choice, consumption 
                  and satisfaction -- describe the basic activities of our lives 
                  from an economic perspective. These concepts are based on certain 
                  assumptions about human nature. Unfortunately, the assumptions 
                  modern economists make about human nature are somewhat confused. 
                    
                  Buddhism, on the other hand, offers a clear and consistent picture 
                  of human nature: a view which encompasses the role of ethics 
                  and the twofold nature of human desire. Let us now take a look 
                  at some economic concepts in the light of Buddhist thinking. 
                  
                
                In 
                  the previous chapter, we discussed the two kinds of desire, 
                  chanda and tanha. Given that there are two 
                  kinds of desire, it follows that there are two kinds of value, 
                  which we might term true value and artificial value. True value 
                  is created by chanda. In other words, a commodity's true value 
                  is determined by its ability to meet the need for well-being. 
                  Conversely, artificial value is created by tanha -- it is a 
                  commodity's capacity to satisfy the desire for pleasure. 
                    
                  To assess an object's value, we must ask ourselves which kind 
                  of desire -- tanha or chanda -- defines it. Fashionable clothes, 
                  jewelry, luxury cars and other status-symbols contain a high 
                  degree of artificial value because they cater to people's vanity 
                  and desire for pleasure. A luxury car may serve the same function 
                  as a cheaper car, but it commands a higher price largely because 
                  of its artificial value. Many of the pleasures taken for granted 
                  in today's consumer society -- the games, media thrills and 
                  untold forms of junk foods available -- are created solely for 
                  the purpose of satisfying tanha, have no practical purpose at 
                  all and are often downright detrimental to well-being. For the 
                  most part, advertising promotes this artificial value. Advertisers 
                  stimulate desires by projecting pleasurable images onto the 
                  products they sell. They induce us to believe, for example, 
                  that whoever can afford a luxury car will stand out from the 
                  crowd and be a member of high society, or that by drinking a 
                  certain brand of soft drink we will have lots of friends and 
                  be happy. 
                    
                  The true value of an object is typically overshadowed by its 
                  artificial value. Craving and conceit, and the desire for the 
                  fashionable and sensually appealing, cloud any reckoning of 
                  the true value of things. How many people, for instance, reflect 
                  on the true value or reasons for eating food or wearing clothes? 
                  
                
                The 
                  question of consumption is similar to that of value. We must 
                  distinguish which kind of desire our consumption is intended 
                  to satisfy: is it to answer the need for things of true value, 
                  or to indulge in the pleasures afforded by artificial value? 
                  Consumption is said to be one of the goals of economic activity. 
                  However, economic theory and Buddhism define consumption differently. 
                    
                  Consumption is the alleviation or satisfaction of desire, that 
                  much is agreed. Modern economics defines consumption as simply 
                  the use of goods and services to satisfy demand. Buddhism, however, 
                  distinguishes between two kinds of consumption, which might 
                  be termed "right" consumption and "wrong" 
                  consumption. Right consumption is the use of goods and services 
                  to satisfy the desire for true well-being. It is consumption 
                  with a goal and a purpose. Wrong consumption arises from tanha; 
                  it is the use of goods and services to satisfy the desire for 
                  pleasing sensations or ego-gratification. 
                    
                  While the Buddhist perspective is based on a wide view of the 
                  stream of causes and effects, the specialized thinking of economics 
                  identifies only part of the stream: demand leads to consumption 
                  which leads to satisfaction. For most economists that's the 
                  end of it, there's no need to know what happens afterwards. 
                  In this view, consumption can be of anything whatsoever, so 
                  long as it results in satisfaction. There is little consideration 
                  of whether or not well-being is adversely affected by that consumption. 
                    
                  Consumption may satisfy sensual desires, but its true purpose 
                  is to provide well-being. For example, our body depends on food 
                  for nourishment. Consumption of food is thus a requirement for 
                  well-being. For most people, however, eating food is also a 
                  means to experience pleasure. If in consuming food one receives 
                  the experience of a delicious flavor, one is said to have satisfied 
                  one's desires. Economists tend to think in this way, holding 
                  that the experience of satisfaction is the end result of consumption. 
                  But here the crucial question is: What is the true purpose of 
                  consuming food: satisfaction of desires or the attainment of 
                  well-being? 
                    
                  In the Buddhist view, when consumption enhances true well-being, 
                  it is said to be successful. On the other hand, if consumption 
                  results merely in feelings of satisfaction, then it fails. At 
                  its worst, consumption through tanha destroys its true objective, 
                  which is to enhance well-being. Heedlessly indulging in desires 
                  with no regard to the repercussions often leads to harmful effects 
                  and a loss of true well-being. Moreover, the compulsive consumption 
                  rampant in consumer societies breeds inherent dissatisfaction. 
                  It is a strange thing that economics, the science of human well-being 
                  and satisfaction, accepts, and indeed lauds, the kind of consumption 
                  that in effect frustrates the realization of its own objectives. 
                    
                  By contrast, right consumption always contributes to well-being 
                  and forms a basis for the further development of human potentialities. 
                  This is an important point often overlooked by economists. Consumption 
                  guided by chanda does much more than just satisfy one's desire; 
                  it contributes to well-being and spiritual development. This 
                  is also true on a global scale. If all economic activities were 
                  guided by chanda, the result would be much more than just a 
                  healthy economy and material progress -- such activities would 
                  contribute to the whole of human development and enable humanity 
                  to lead a nobler life and enjoy a more mature kind of happiness. 
                  
                
                At 
                  the very heart of Buddhism is the wisdom of moderation. When 
                  the goal of economic activity is seen to be satisfaction of 
                  desires, economic activity is open-ended and without clear definition 
                  -- desires are endless. According to the Buddhist approach, 
                  economic activity must be controlled by the qualification that 
                  it is directed to the attainment of well-being rather than the 
                  "maximum satisfaction" sought after by traditional 
                  economic thinking. Well-being as an objective acts as a control 
                  on economic activity. No longer are we struggling against each 
                  other to satisfy endless desires. Instead, our activities are 
                  directed toward the attainment of well-being. If economic activity 
                  is directed in this way, its objectives are clear and its activities 
                  are controlled. A balance or equilibrium is achieved. There 
                  is no excess, no overconsumption or overproduction. In the classical 
                  economic model, unlimited desires are controlled by scarcity, 
                  but in the Buddhist model they are controlled by an appreciation 
                  of moderation and the objective of well-being. The resulting 
                  balance will naturally eliminate the harmful effects of uncontrolled 
                  economic activity. 
                    
                  Buddhist monks and nuns traditionally reflect on moderation 
                  before each meal by reciting this reflection: 
                 
                  "Wisely 
                    reflecting, we take alms food, not for the purpose of fun, 
                    not for indulgence or the fascination of taste, but simply 
                    for the maintenance of the body, for the continuance of existence, 
                    for the cessation of painful feeling, for living the higher 
                    life. Through this eating, we subdue old painful feelings 
                    of hunger and prevent new painful feelings (of overeating) 
                    from arising. Thus do we live unhindered, blameless, and in 
                    comfort." [M.I.10; Nd. 496] 
                 
                    
                  The goal of moderation is not restricted to monastics: whenever 
                  we use things, be it food, clothing, or even paper and electricity, 
                  we can take the time to reflect on their true purpose, rather 
                  than using them heedlessly. By reflecting in this way we can 
                  avoid heedless consumption and so understand "the right 
                  amount," the "middle way." 
                    
                  We also come to see consumption as a means to an end, which 
                  is the development of human potential. With human development 
                  as our goal, we eat food not simply for the pleasure it affords, 
                  but to obtain the physical and mental energy necessary for intellectual 
                  and spiritual growth toward a nobler life. 
                  
                Non-consumption
                Lacking 
                  a spiritual dimension, modern economic thinking encourages maximum 
                  consumption. It praises those who eat the most -- three, four 
                  or more times a day. If someone were to eat ten times a day, 
                  so much the better. By contrast, a Buddhist economics understands 
                  that non-consumption can contribute to well-being. Though monks 
                  eat only one meal a day, they strive for a kind of well-being 
                  that is dependent on little. 
                    
                  On Observance days, some Buddhist laypeople also refrain from 
                  eating after midday and, in so doing, contribute to their own 
                  well-being. Renunciation of the evening meal allows them to 
                  spend time in meditation and reflection on the Buddha's teachings. 
                  The body is light and the mind easily calmed when the stomach 
                  is not full. Thus Buddhism recognizes that certain demands can 
                  be satisfied through non-consumption, a position which traditional 
                  economic thinking would find hard to appreciate. Refraining 
                  from eating can play a role in satisfying our nonmaterial, spiritual 
                  needs. 
                    
                  It's not that getting down to eating one meal a day is the goal, 
                  of course. Like consumption, non-consumption is only a means 
                  to an end, not an end in itself. If abstinence did not lead 
                  to well-being, it would be pointless, just a way of mistreating 
                  ourselves. The question is not whether to consume or not to 
                  consume, but whether or not our choices lead to self-development. 
                  
                Overconsumption
                Today's 
                  society encourages overconsumption. In their endless struggle 
                  to find satisfaction through consuming, a great many people 
                  damage their own health and harm others. Drinking alcohol, for 
                  instance, satisfies a desire, but is a cause of ill-health, 
                  unhappy families and fatal accidents. People who eat for taste 
                  often overeat and make themselves ill. Others give no thought 
                  at all to food values and waste money on junk foods. Some people 
                  even become deficient in certain vitamins and minerals despite 
                  eating large meals every day. (Incredibly, cases of malnutrition 
                  have been reported.) Apart from doing themselves no good, their 
                  overeating deprives others of food. 
                    
                  So we cannot say that a thing has value simply because it provides 
                  pleasure and satisfaction. If satisfaction is sought in things 
                  that do not enrich the quality of life, the result often becomes 
                  the destruction of true welfare, leading to delusion and intoxication, 
                  loss of health and well-being. 
                    
                  A classic economic principle states that the essential value 
                  of goods lies in their ability to bring satisfaction to the 
                  consumer. Here we may point to the examples given above where 
                  heavy consumption and strong satisfaction have both positive 
                  and negative results. The Buddhist perspective is that the benefit 
                  of goods and services lies in their ability to provide the consumer 
                  with a sense of satisfaction at having enhanced the quality 
                  of his or her life. This extra clause is essential. All definitions, 
                  whether of goods, services, or personal and social wealth, must 
                  be modified in this way. 
                  
                
                While 
                  not technically an economic concern, I would like to add a few 
                  comments on the subject of contentment. Contentment is a virtue 
                  that has often been misunderstood and, as it relates to consumption 
                  and satisfaction, it seems to merit some discussion. 
                    
                  The tacit objective of economics is a dynamic economy where 
                  every demand and desire is supplied and constantly renewed in 
                  a never-ending and ever-growing cycle. The entire mechanism 
                  is fueled by tanha. From the Buddhist perspective, this tireless 
                  search to satisfy desires is itself a kind of suffering. Buddhism 
                  proposes the cessation of this kind of desire, or contentment, 
                  as a more skillful objective. 
                    
                  Traditional economists would probably counter that without desire, 
                  the whole economy would grind to a halt. However, this is based 
                  on a misunderstanding of the nature of contentment. People misunderstand 
                  contentment because they fail to distinguish between the two 
                  different kinds of desire, tanha and chanda. We lump them together, 
                  and in proposing contentment, dismiss them both. A contented 
                  person comes to be seen as one who wants nothing at all. Here 
                  lies our mistake. 
                    
                  Obviously, people who are content will have fewer wants than 
                  those who are discontent. However, a correct definition of contentment 
                  must be qualified by the stipulation that it implies only the 
                  absence of artificial want, that is tanha; chanda, the desire 
                  for true well-being, remains. In other words, the path to true 
                  contentment involves reducing the artificial desire for sense-pleasure, 
                  while actively encouraging and supporting the desire for quality 
                  of life. 
                    
                  These two processes -- reducing tanha and encouraging chanda 
                  -- are mutually supportive. When we are easily satisfied in 
                  material things, we save time and energy that might otherwise 
                  be wasted on seeking objects of tanha. The time and energy we 
                  save can, in turn, be applied to the development of well-being, 
                  which is the objective of chanda. When it comes to developing 
                  skillful conditions, however, contentment is not a beneficial 
                  quality. Skillful conditions must be realized through effort. 
                  Too much contentment with regards to chanda easily turns into 
                  complacency and apathy. In this connection, the Buddha pointed 
                  out that his own attainment of enlightenment was largely a result 
                  of two qualities: unremitting effort, and lack of contentment 
                  with skillful conditions. [D.III.214; A.I.50; Dhs. 8, 234] 
                  
                
                Buddhist 
                  and conventional economics also have different understandings 
                  of the role of work. Modern Western economic theory is based 
                  on the view that work is something that we are compelled to 
                  do in order to obtain money for consumption. It is during the 
                  time when we are not working, or "leisure time," that 
                  we may experience happiness and satisfaction. Work and satisfaction 
                  are considered to be separate and generally opposing principles. 
                    
                  Buddhism, however, recognizes that work can either be satisfying 
                  or not satisfying, depending on which of the two kinds of desire 
                  is motivating it. When work stems from the desire for true well-being, 
                  there is satisfaction in the direct and immediate results of 
                  the work itself. By contrast, when work is done out of desire 
                  for pleasure-objects, then the direct results of the work itself 
                  are not so important. With this attitude, work is simply an 
                  unavoidable necessity to obtain the desired object. The difference 
                  between these two attitudes determines whether or not work will 
                  directly contribute to well-being. In the first case, work is 
                  a potentially satisfying activity, and in the second, it is 
                  a necessary chore. 
                    
                  As an example of these two different attitudes, let us imagine 
                  two research workers. They are both investigating natural means 
                  of pest control for agricultural use. The first researcher, 
                  Mr. Smith, desires the direct fruits of his research -- knowledge 
                  and its practical application -- and takes pride in his work. 
                  The discoveries and advances he makes afford him a sense of 
                  satisfaction. 
                    
                  The second, Mr. Jones, only works for money and promotions. 
                  Knowledge and its application, the direct results of his work, 
                  are not really what he desires; they are merely the means through 
                  which he can ultimately obtain money and position. Mr. Jones 
                  doesn't enjoy his work, he does it because he feels he has to. 
                    
                  Work performed in order to meet the desire for well-being can 
                  provide inherent satisfaction, because it is appreciated for 
                  its own sake. Achievement and progress in the work lead to a 
                  growing sense of satisfaction at every stage of the work's development. 
                  In Buddhist terminology, this is called working with chanda. 
                  Conversely, working out of desire for pleasure is called working 
                  with tanha. Those working with tanha are motivated by the desire 
                  to consume. But since it is impossible to consume and work at 
                  the same time, the work itself affords little enjoyment or satisfaction. 
                  It should also be pointed out that work in this case postpones 
                  the attainment of satisfaction, and as such will be seen as 
                  an impediment to it. When work is seen as an impediment to consumption 
                  it can become intolerable. In developing countries this is readily 
                  seen in the extent of hire-purchase debt and corruption, where 
                  consumers cannot tolerate the delay between working and consuming 
                  the objects of their desires. 
                    
                  In modern industrial economies, many jobs preclude satisfaction, 
                  or make it very difficult, by their very nature. Factory jobs 
                  can be dull, undemanding, pointless, even dangerous to health. 
                  They breed boredom, frustration, and depression, all of which 
                  have negative effects on productivity. However, even in menial 
                  or insignificant tasks, there is a difference between working 
                  with tanha and working with chanda. Even in the most monotonous 
                  of tasks, where one may have difficulty generating a sense of 
                  pride in the object of one's labors, a desire to perform the 
                  task well, or a sense of pride in one's own endeavors, may help 
                  to alleviate the monotony, and even contribute something of 
                  a sense of achievement to the work: even though the work may 
                  be monotonous, one feels that at least one is developing good 
                  qualities like endurance and is able to derive a certain enthusiasm 
                  for the work. 
                    
                  As we have seen, the fulfillment of tanha lies with seeking 
                  and obtaining objects which provide pleasant feelings. While 
                  this seeking may involve action, the objective of tanha is not 
                  directly related in a causal way to the action undertaken. Let's 
                  look at two different tasks and examine the cause and effect 
                  relationships involved: (1) Mr. Smith sweeps the street, and 
                  is paid $500 a month; (2) If Little Suzie finishes the book 
                  she is reading, Daddy will take her to the movies. 
                    
                  It may seem at first glance that sweeping the street is the 
                  cause for Mr. Smith receiving his wage; that is, sweeping the 
                  street is the cause, and money is the result. But in fact, this 
                  is a mistaken conclusion. Correctly speaking, one would say: 
                  the action of sweeping the street is the cause for the street 
                  being cleaned; the cleanness of the street is a stipulation 
                  for Mr. Smith receiving his wage, based on an agreement between 
                  employer and employee. 
                    
                  All actions have results that arise as a natural consequence. 
                  The natural result of sweeping the street is a clean street. 
                  In the contract between employer and employee, a stipulation 
                  is added to this natural result, so that sweeping the street 
                  also brings about a payment of money. This is a man-made, or 
                  artificial, law. However, money is not the natural result of 
                  sweeping the street: some people may sweep a street and get 
                  no money for it, while many other people receive wages without 
                  having to sweep streets. Money is a socially contrived or artificial 
                  condition. Many contemporary social problems result from confusion 
                  between the natural results of actions and the human stipulations 
                  added to them. People begin to think that a payment of money 
                  really is the natural result of sweeping a street, or, to use 
                  another example, that a good wage, rather than medical knowledge, 
                  is the natural result of studying medicine. 
                    
                  As for Little Suzie, it may seem that completing the book is 
                  the cause, and going to the movies with Dad is the result. But 
                  in fact finishing the book is simply a stipulation on which 
                  going to the movies is based. The true result of reading the 
                  book is obtaining knowledge. 
                    
                  Expanding on these examples, if Mr. Smith's work is directed 
                  solely by tanha, all he wants is his $500, not the cleanness 
                  of the street. In fact, he doesn't want to sweep the street 
                  at all, but, since it is a condition for receiving his wage, 
                  he must. As for Little Suzie, if her true desire is to go to 
                  the movies (not to read the book), then reading will afford 
                  no satisfaction in itself; she only reads because it is a condition 
                  for going to the movies. 
                    
                  When people work solely out of tanha, their true desire is for 
                  consumption, not action. Their actions -- in this case, sweeping 
                  and reading -- are seen as means of obtaining the objects of 
                  desire -- the salary and a trip to the movies. When they work 
                  with chanda, on the other hand, Mr. Smith takes pride in (i.e., 
                  desires) the cleanness of the street and little Suzie wants 
                  the knowledge contained in the book. With chanda, their desire 
                  is for action and the true results of that action. Cleanness 
                  is the natural result of sweeping the street and knowledge is 
                  the natural result of reading the book. When the action is completed, 
                  the result naturally and simultaneously arises. When Mr. Smith 
                  sweeps the street, a clean street ensues, and it ensues whenever 
                  he sweeps. When Little Suzie reads a book, knowledge arises, 
                  and it arises whenever she reads the book. With chanda, work 
                  is intrinsically satisfying because it is itself the achievement 
                  of the desired result. 
                    
                  Thus, the objective of chanda is action and the good result 
                  which arises from it. When their actions are motivated by chanda, 
                  Mr. Smith applies himself to sweeping the street irrespective 
                  of his monthly wage, and little Suzie will read her book even 
                  without Daddy having to promise to take her to the movies. (In 
                  reality, of course, most people do work for the wages, which 
                  are a necessity, but we also have the choice to take pride in 
                  our work and strive to do it well, which is chanda, or to do 
                  it perfunctorily simply for the wage. Thus, in real life situations, 
                  most people are motivated by varying degrees of both tanha and 
                  chanda.) 
                    
                  As we have seen, actions motivated by chanda and actions motivated 
                  by tanha give rise to very different results, both objectively 
                  and ethically. When we are motivated by tanha and are working 
                  simply to attain an unrelated object or means of consumption, 
                  we may be tempted to attain the object of desire through other 
                  means which involve less effort. If we can obtain the objective 
                  without having to do any work at all, even better. If it is 
                  absolutely necessary to work for the objective, however, we 
                  will only do so reluctantly and perfunctorily. 
                    
                  The extreme result of this is criminal activity. If Mr. Smith 
                  wants money but has no desire (chanda) to work, he may find 
                  working for the money intolerable and so resort to theft. If 
                  Little Suzie wants to go the movies, but can't stand reading 
                  the book, she may steal money from her mother and go to the 
                  movies herself. 
                    
                  With only tanha to get their salary but no chanda to do their 
                  work, people will only go about the motions of performing their 
                  duties, doing just enough to get by. The result is apathy, laziness 
                  and poor workmanship. Mr. Smith simply goes through the motions 
                  of sweeping the street day by day until pay day arrives, and 
                  Little Suzie reads the book simply to let Daddy see that she 
                  has finished it, but doesn't take in anything she has read, 
                  or she may cheat, saying she has read the book when in fact 
                  she hasn't. 
                    
                  When sloppiness and dishonesty of this type arise within the 
                  work place, secondary checks must be established to monitor 
                  the work. These measures address the symptoms but not the cause, 
                  and only add to the complexity of the situation. For example, 
                  it may be necessary to install a supervisor to inspect Mr. Smith's 
                  work and check his hours; or Little Suzie's brother may have 
                  to look in and check that she really is reading the book. This 
                  applies to employers as well as employees: workers' tribunals 
                  must be established to prevent greedy or irresponsible employers 
                  from exploiting their workers and making them work in inhumane 
                  conditions or for unfair wages. When tanha is the motivating 
                  force, workers and employers are trapped in a game of one-upmanship, 
                  with each side trying to get as much for themselves as they 
                  can for the least possible expense. 
                    
                  Tanha is escalated to a considerable extent by social influences. 
                  For instance, when the owners of the means of production are 
                  blindly motivated by a desire to get rich for as little outlay 
                  as possible, it is very unlikely that the workers will have 
                  much chanda. They will be more likely to follow the example 
                  of their employers, trying to get as much as they can for as 
                  little effort as possible. This tendency can be seen in the 
                  modern work place. It seems, moreover, that the more affluent 
                  a society becomes, the more this tendency is produced -- the 
                  more we have, the more we want. This is a result of the unchecked 
                  growth of tanha and the lack of any viable alternative. Meanwhile, 
                  the values of inner contentment and peace of mind seem to have 
                  been all but lost in modern society. 
                    
                  In rare cases, however, we hear of employers and employees who 
                  do work together with chanda. This happens when the employer 
                  is responsible, capable and considerate, thus commanding the 
                  confidence and affection of employees, who in return are harmonious, 
                  diligent, and committed to their work. There have even been 
                  cases of employers who were so caring with their employees that 
                  when their businesses failed and came close to bankruptcy, the 
                  employees sympathetically made sacrifices and worked as hard 
                  as possible to make the company profitable again. Rather than 
                  making demands for compensation, they were willing to take a 
                  cut in wages. 
                  
                
                The 
                  word "production" is misleading. We tend to think 
                  that through production new things are created, when in fact 
                  it is merely changes of state which are effected. One substance 
                  or form of energy is converted into another. These conversions 
                  entail the creation of a new state by the destruction of an 
                  old one. Thus production is always accompanied by destruction. 
                  In some cases the destruction is acceptable, in others it is 
                  not. Production is only truly justified when the value of the 
                  thing produced outweighs the value of that which is destroyed. 
                  In some cases it may be better to refrain from production. This 
                  is invariably true for those industries whose products are for 
                  the purpose of destruction. In weapons factories, for example, 
                  non-production is always the better choice. In industries where 
                  production entails the destruction of natural resources and 
                  environmental degradation, non-production is sometimes the better 
                  choice. To choose, we must distinguish between production with 
                  positive results and production with negative results; production 
                  that enhances well-being and that which destroys it. 
                    
                  In this light, non-production can be a useful economic activity. 
                  A person who produces very little in materialistic terms may, 
                  at the same time, consume much less of the world's resources 
                  and lead a life that is beneficial to the world around him. 
                  Such a person is of more value than one who diligently consumes 
                  large amounts of the world's resources while manufacturing goods 
                  that are harmful to society. But modern economics could never 
                  make such a distinction; it would praise a person who produces 
                  and consumes (that is, destroys) vast amounts more than one 
                  who produces and consumes (destroys) little. 
                    
                  In the economics of the industrial era the term production has 
                  been given a very narrow meaning. It is taken to relate only 
                  to those things that can be bought and sold -- a bull fight, 
                  where people pay money to see bulls killed, is seen as contributing 
                  to the economy, while a child helping an elderly person across 
                  the street is not; a professional comedian telling jokes on 
                  stage, relaxing his audience and giving them a good time, is 
                  taken to be economically productive because money changes hands, 
                  while an office worker with a very cheerful disposition is not 
                  considered to have produced anything by his cheerfulness toward 
                  those around him. Nor is there any accounting of the economic 
                  costs of aggressive action and speech that continually create 
                  tension in the work place, so that those affected have to find 
                  some way to alleviate it with amusements, such as going to see 
                  a comedian. 
                  
                
                Modern 
                  economics is based on the assumption that it is human nature 
                  to compete. Buddhism, on the other hand, recognizes that human 
                  beings are capable of both competition and cooperation. 
                    
                  Competition is natural: when they are striving to satisfy the 
                  desire for pleasure -- when they are motivated by tanha -- people 
                  will compete fiercely. At such times they want to get as much 
                  as possible for themselves and feel no sense of sufficiency 
                  or satisfaction. If they can obtain the desired object without 
                  having to share it with anyone else, so much the better. Inevitably, 
                  competition is intense; this is natural for the mind driven 
                  by tanha. 
                    
                  This competitive instinct can be redirected to induce cooperation. 
                  One might unite the members of a particular group by inciting 
                  them to compete with another group. For example, corporate managers 
                  sometimes rally their employees to work together to beat their 
                  competitors. But this cooperation is based entirely on competition. 
                  Buddhism would call this "artificial cooperation." 
                    
                  True cooperation arises with the desire for well-being -- with 
                  chanda. Human development demands that we understand how tanha 
                  and chanda motivate us and that we shift our energies from competition 
                  towards cooperative efforts to solve the problems facing the 
                  world and to realize a nobler goal. 
                  
                
                "Whether 
                  a given want is a true need, a fanciful desire, or a bizarre 
                  craving is of no matter to economics. Nor is it the business 
                  of economics to judge whether such wants should be satisfied,"[2] 
                  say the economics texts, but from a Buddhist perspective the 
                  choices we make are of utmost importance, and these choices 
                  require some qualitative appreciation of the options available. 
                  Choice is a function of intention, which is the heart of kamma, 
                  one of Buddhism's central teachings. The influence of kamma 
                  affects not only economics but all areas of our lives and our 
                  social and natural environment. Economic decisions, or choices, 
                  which lack ethical reflection are bad kamma -- they are bound 
                  to bring undesirable results. Good economic decisions are those 
                  based on an awareness of the costs on the individual, social 
                  and environmental levels, not just in terms of production and 
                  consumption. These economic decisions are kamma. Every time 
                  an economic decision is made, kamma is made, and the process 
                  of fruition is immediately set in motion, for better or for 
                  worse, for the individual, for society and the environment. 
                  Thus it is important to recognize the qualitative difference 
                  between different courses of action and to make our choices 
                  wisely. 
                  
                
                I 
                  would now like to take a step back and look at economics from 
                  a somewhat wider perspective. We have discussed the various 
                  economic activities. We may now ask: what is the purpose of 
                  these activities? What are we striving for in all this buying 
                  and selling, producing and consuming? Or we may ask an even 
                  grander question: What indeed is the purpose of life? 
                    
                  Everybody holds views on these matters, although most of us 
                  are unconscious of them. Buddhist teachings stress that these 
                  views exert a tremendous influence on our lives. The Pali word 
                  for view is ditthi. This term covers all kinds of views 
                  on many different levels -- our personal opinions and beliefs; 
                  the ideologies, religious and political views espoused by groups; 
                  and the attitudes and world-views held by whole cultures and 
                  societies. 
                    
                  Views lead to ramifications far beyond the realm of mental states 
                  and intellectual discourse. Like ethics, views are linked to 
                  the stream of causes and conditions. They are "subjective" 
                  mental formations that inevitably condition events in "objective" 
                  reality. On a personal level, one's world-view affects the events 
                  of life. On a national level, political views and social mores 
                  condition society and the quality of day-to-day life. 
                    
                  The Buddha warned that views are potentially the most dangerous 
                  of all mental conditions. Unskillful views can wreak unimaginable 
                  damage. The violence of the Crusades, Nazism and Communism, 
                  to name just three disastrous fanatical movements, were fueled 
                  by extremely unskillful views. Skillful views, on the other 
                  hand, are the most beneficial of mental conditions. As the Buddha 
                  said: "Monks, I see no other condition which is so much 
                  a cause for the arising of as yet unarisen unskillful conditions, 
                  and for the development and fruition of unskillful conditions 
                  already arisen, as wrong view ..." [A.I.30] 
                    
                  This begs the question: what view of life is behind modern economics? 
                  Is it a skillful or an unskillful one? At the risk of oversimplifying, 
                  let us say that the goal of modern life is to find happiness. 
                  This view is so pervasive in modern societies that it is rarely 
                  even recognized, let alone examined or questioned. The very 
                  concept of "progress" -- social, economic, scientific 
                  and political -- assumes that society's highest goal is to reach 
                  a state where everyone will be happy. The United States Declaration 
                  of Independence poetically embodies this ideal by asserting 
                  mankind's right to "life, liberty and the pursuit of happiness." 
                    
                  While certainly a good-hearted aspiration, the view that happiness 
                  is the goal of life betrays a fundamental confusion about the 
                  truth of life. "Happiness" is never more than an ill-defined, 
                  elusive quality. Many people equate happiness with sense pleasure 
                  and the satisfaction of their desires. For these people, happiness 
                  remains a remote condition, something outside themselves, a 
                  future prize that must be pursued and captured. But happiness 
                  cannot be obtained through seeking, only through bringing about 
                  the causes and conditions which lead to it, and these are personal 
                  and mental development. 
                    
                  From the Buddhist point of view, people often confuse tanha 
                  -- their restless craving for satisfaction and pleasure -- with 
                  the pursuit of happiness. This is indeed an unskillful view, 
                  because the craving of tanha can never be satisfied. If the 
                  pursuit of happiness equals the pursuit of the objects of tanha, 
                  then life itself becomes a misery. To see the consequences of 
                  this unfortunate view, one need only witness the depression 
                  and angst of the citizens in so many modern cities filled with 
                  limitless distractions and pleasure centers. Rather than leading 
                  to contentment and well-being, the pursuit of happiness so often 
                  leads to restlessness and exhaustion in the individual, strife 
                  in society and unsustainable consumption of the environment. 
                    
                  By contrast, the Buddhist view of life is much less idealistic 
                  but much more practical. The Buddha said simply, "There 
                  is suffering." [Vin.I.9; S.V.421; Vbh.99] This was the 
                  first of his Four Noble Truths, the central tenets of Buddhism. 
                  He went on to describe what suffering is: "Birth is suffering; 
                  old age is suffering; sickness is suffering; death is suffering; 
                  sorrow, lamentation, pain, grief and despair are suffering; 
                  separation from the loved is suffering; getting what you don't 
                  want is suffering; not getting what you want is suffering ..." 
                    
                  There is little question that these things exist in life and 
                  they are all unpleasant, but the tendency of our society is 
                  to deny them. Death, in particular, is rarely thought or spoken 
                  about as a personal inevitability. Denying these things, however, 
                  does not make them go away. This is why the Buddha said that 
                  suffering is something that should be recognized. The first 
                  Noble Truth is the recognition that all things must pass and 
                  that ultimately there is no security to be had within the material 
                  world. This is the kind of truth the Buddha urged people to 
                  face -- the painfully obvious and fundamental facts of life. 
                    
                  The second Noble Truth explains the cause of suffering. The 
                  Buddha said that suffering is caused by craving based on ignorance 
                  (that is, tanha). In other words, the cause of suffering is 
                  an internal condition. We may ask, "Does craving cause 
                  old age?": it is not craving that causes old age, but rather 
                  craving for youth which makes old age a cause of suffering. 
                  Old age is inevitable; craving is not. The Buddha said that 
                  craving can be eliminated, which brings us to the third Noble 
                  Truth, which concerns the cessation of suffering. With the complete 
                  and utter abandonment of craving, suffering ceases. But how 
                  to do that? In the fourth Noble Truth the Buddha tells how. 
                  It is the Noble Eightfold Path for the cessation of suffering, 
                  through training of body, speech and mind in accordance with 
                  the Buddhist code of Right View, Right Thought, Right Speech, 
                  Right Action, Right Livelihood, Right Effort, Right Mindfulness 
                  and Right Concentration. 
                    
                  It is fairly obvious from the Four Noble Truths that the Buddhist 
                  view of life is very much at odds with the view common to modern 
                  societies. Whereas Buddhism says "There is suffering," 
                  modern societies say, "There is happiness, and I want it 
                  now!" The implications of this simple shift in perception 
                  are enormous. A society that views the purpose of life as the 
                  pursuit of happiness is one that is recklessly pursuing some 
                  future dream. Happiness is seen as something that is inherently 
                  lacking and must be found somewhere else. Along with this view 
                  comes dissatisfaction, impatience, contention, an inability 
                  to deal with suffering, and a lack of attention to the present 
                  moment. 
                    
                  On the other hand, with a view of life that appreciates the 
                  reality of suffering, we pay more attention to the present moment 
                  so that we can recognize problems when they arise. We cooperate 
                  with others to solve problems, rather than competing with them 
                  to win happiness. Such a view also influences our economic choices. 
                  Our production and consumption are geared less toward the pursuit 
                  of sense gratification (tanha) and more toward relieving suffering 
                  (chanda). If this Buddhist view were taken up on a national 
                  or global scale, rather than seeking to satisfy every demand, 
                  our economies would strive to create a state free of suffering, 
                  or a state which is primed for the enjoyment of happiness (just 
                  as a healthy body is one which is primed to enjoy happiness). 
                    
                  Only through understanding suffering can we realize the possibility 
                  of happiness. Here Buddhism makes a distinction between two 
                  kinds of happiness: dependent happiness and independent happiness. 
                  Dependent happiness is happiness that requires an external object. 
                  It includes any happiness contingent on the material world, 
                  including wealth, family, honor and fame. Dependent happiness, 
                  being dependent on things that can never be ours in an ultimate 
                  sense, is fickle and uncertain. 
                    
                  Independent happiness, on the other hand, is the happiness that 
                  arises from within a mind that has been trained and has attained 
                  some degree of inner peace. Such a happiness is not dependent 
                  on externals and is much more stable than dependent happiness. 
                    
                  Dependent happiness leads to competition and conflict in the 
                  struggle to acquire material goods. Any happiness arising from 
                  such activity is a contentious kind of happiness. There is, 
                  however, a third kind of happiness which, while not as exalted 
                  as the truly independent kind, is nevertheless more skillful 
                  than the contentious kind. It is a happiness that is more altruistically 
                  based, directed toward well-being and motivated by goodwill 
                  and compassion. Through personal development, people can appreciate 
                  this truer kind of happiness -- the desire to bring happiness 
                  to others (which in Buddhism we call metta). With this 
                  kind of happiness, we can experience gladness at the happiness 
                  of others, just as parents feel glad at the happiness of their 
                  children. This kind of happiness might be called "harmonious 
                  happiness," as distinct from the contentious kind of happiness. 
                  It is less dependent on the acquisition of material goods and 
                  arises more from giving than receiving. Although such happiness 
                  is not truly independent, it is much more skillful than the 
                  happiness resulting from selfish acquisition. 
                    
                  The most assured level of happiness is the liberation resulting 
                  from enlightenment, which is irreversible. But even to train 
                  the mind, through study and meditation practice, to achieve 
                  some inner contentment is a powerful antidote to the dissatisfaction 
                  of the consumer society. And with the clarity of inner calm 
                  comes an insight into one of life's profound ironies: striving 
                  for happiness, we create suffering; understanding suffering, 
                  we find peace. 
                Footnotes: 
                1. 
                  From  "Economics '73-'74," Various Contributors, 
                  1973, The Dushkin Publishing Group, Inc., Guildford, Connecticut. 
                  [Back to text] 
                2. 
                  From  "Economics '73-'74," Various Contributors, 
                  1973, The Dushkin Publishing Group, Inc., Guildford, Connecticut. 
                  [Back to text] 
                  
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