In his classic work The Protestant Ethic and the Spirit of Capitalism, Max Weber argued that the values of Protestant Christianity — particularly Calvinist asceticism, discipline, and the concept of work as a religious calling — helped give rise to modern capitalism. He claimed that these values fostered a reinvestment mentality and rational economic behavior that drove European economic growth between the 16th and 18th centuries.
Weber contrasted this with the major Asian religions of his time — including Buddhism — which, he said, lacked two crucial ingredients: a disciplined, this-worldly asceticism, and the idea of work as a spiritual vocation .
Weber viewed Buddhism as emphasizing other-worldliness, especially in its monastic ideal, which he saw as detached from the world and its drives. He believed that Buddhism’s rational focus was confined to meditation, and that its guidance for laypeople was too vague to support a coherent work ethic or economic rationalism. While he acknowledged that lay Buddhists did engage in economic activity to earn merit, he saw this as oriented toward religious giving, not reinvestment in productive enterprise .
However, this view has been criticized. Scholars like Padmasiri De Silva argue that Weber’s perspective was limited by his focus on ancient texts and orthodox forms of Buddhism known in his time. Modern scholars point out that Buddhism has long held a genuine social ethic, especially in its teachings to laypeople. Far from being fatalistic, the Buddhist doctrine of karma encourages ethical responsibility and active compassion in this life .
Contrary to Weber’s assumptions, Buddhism does not oppose material prosperity. It teaches lay followers to earn wealth ethically, live simply, and share generously. While it may not promote capitalism in the Protestant sense, it supports values — like diligence, honesty, and frugality — that can thrive within a capitalist framework, as long as wealth is used for the greater good.
Indeed, history shows that Buddhist societies have engaged in forms of economic activity resembling capitalism. Monasteries in Tang China ran markets, lent grain, and reinvested income. Tibetan monasteries managed land, trade, and herds. These examples reflect a kind of “communal capitalism,” where wealth is reinvested not for personal gain, but for the benefit of the religious community and society .
In modern Asia, Buddhism has both adapted to and resisted capitalism. In Japan, for instance, Buddhist values of frugality and devotion helped ease the transition to industrial modernity. In Thailand and Sri Lanka, Buddhist thinkers have responded to the rise of consumerism by calling for a “Buddhist economics” — one that rejects materialism and prioritizes human well-being, sustainability, and moral integrity .
In conclusion, while Buddhism may not have birthed capitalism as Protestantism arguably did, it offers a moral framework that can guide and critique capitalist practice. It asks not whether a society is productive, but whether it is compassionate. Not how much wealth is made, but how wisely it is used.