Buddhist thought offers a radical rethinking of the purpose of economics. While conventional economics often seeks to maximize production and consumption, Buddhist economics seeks to maximize human well-being with minimal consumption. It is not about generating more, but about needing less — and living better.
At the heart of this approach is a clear purpose: economics should develop human character and foster genuine well-being, not just satisfy superficial desires. E. F. Schumacher, who helped bring the concept of Buddhist economics to the West, described it as aiming for the “purification of human character” rather than the multiplication of wants .
Ven. Payutto, a leading Thai scholar-monk, distinguishes between “right consumption” and “wrong consumption.” Right consumption supports the growth of human potential and promotes inner and outer harmony. Wrong consumption, by contrast, is driven by ego and sensual craving — it feeds greed and delusion while eroding contentment .
Padmasiri De Silva echoes this, arguing that national development should be evaluated by its contribution to optimal human development, not just by output or income growth. He and others criticize modern consumer economies for fostering endless desire, a condition Buddhism identifies as the root of suffering .
Sulak Sivaraksa, a prominent Thai activist and Buddhist writer, calls consumerism a “religion” — one that encourages greed, hatred, and delusion. It teaches people to abandon self-reliance and wisdom in pursuit of status and comfort. According to him, this modern obsession with material goods creates dependency, restlessness, and deep dissatisfaction, even among those who have “everything” .
Modern Buddhist critics argue that the global economy mistakes craving for fulfillment. It assumes desires are fixed and infinite — to be met, not questioned. In contrast, Buddhism teaches that by reducing unnecessary desires, one becomes freer and more satisfied. Simplicity becomes strength.
Schumacher put it succinctly: modern economics tries to “maximize consumption by the optimal pattern of productive effort,” but Buddhist economics “tries to maximize human satisfaction by the optimal pattern of consumption.” That is, the goal is well-being, not accumulation .
In practice, this means rejecting growth for growth’s sake and resisting the idea that happiness lies just beyond the next purchase. It means designing economic systems not to chase cravings but to support dignity, balance, and compassion — for individuals, communities, and the planet.