E.F. Schumacher on “Buddhist economics”:
While the materialist is mainly interested in goods, the Buddhist is mainly interested in liberation. But Buddhism is “The Middle Way” and therefore in no way antagonistic to physical well-being. It is not wealth that stands in the way of liberation but the attachment to wealth; not the enjoyment of pleasurable things but the craving for them. The keynote of Buddhist economics, therefore, is simplicity and non-violence. From an economist’s point of view, the marvel of the Buddhist way of life is the utter rationality of its pattern–amazingly small means leading to extraordinarily satisfactory results.
For the modern economist this is very difficult to understand. He is used to measuring the “standard of living” by the amount of annual consumption, assuming all the time that a man who consumes more is “better off” than a man who consumes less. A Buddhist economist would consider this approach excessively irrational: since consumption is merely a means to human well-being, the aim should be to obtain the maximum of well-being with the minimum of consumption. […] The ownership and consumption of goods is a means to an end, and Buddhist economics is the systematic study of how to attain given ends with the minimum means.
Modern economics, on the other hand, considers consumption to be the sole end and purpose of all economic activity, taking the factors of production–land, labour, and capital–as the means. The former, in short, tries to maximise human satisfactions by the optimal pattern of consumption, while the latter tries to maximise consumption by the optimal pattern of productive effort. It is easy to see that the effort needed to sustain a way of life which seeks to attain the optimal pattern of consumption is likely to be much smaller than the effort needed to sustain a drive for maximum consumption. (Small Is Beautiful, pp. 57-58)