Buddhist Economics: Creating a Sustainable and Compassionate Economy

Abstract

Our global economy faces two major economic threats—inequality and climate change—along with the political threat of nuclear war. The mainstream free market economic model does not address these problems, and it incorrectly assumes that markets can take care of the problems and deliver a high standard of living to all. History has demonstrated that the free market economic model is not correct, as inequality and climate change have grown worse over the past four decades and threaten human existence as we know it. Wars along with climate change have decimated people’s homes and communities, and created millions of refugees seeking a safe place to live.

Here an alternative, holistic economic model, termed Buddhist Economics, provides a framework for creating an economy that delivers shared prosperity in a sustainable world where the human spirit flourishes. This approach is transdisciplinary and interreligious, and is compatible with teachings across major religions and disciplines. After a brief comparison of the Buddhist economic approach with the free market model, the core assumptions of Buddhist economics are explored in more detail. Then the chapter discusses what creates prosperity and happiness in Buddhist economics, before turning to community and national actions that create a sustainable Buddhist economy for the well-being of all.