3.1.3 Buddhist 'economics'
Buddhism without Hinduism
It is significant that the context of the Hakone discussions was the rapidly spreading culture of  'a modernising invasive industrialism' based on capitalist economics. Many of the delegates were no doubt pondering what a modern Buddha would have to say about this and were searching for a practice more suitable for a scientific and democratic society.  Indeed, some Buddhist scholars have set aside such crucial elements of traditional Buddhism as rebirth and karma.  Whilst not denying that the founder taught these doctrines, they attribute them to the Hindu world in which the Buddha had grown up arguing that they aren't necessary to Buddha's genius as expressed in the  "four noble truths." Their aim therefore is to get at the core of Buddhist practice, free of "accretions" imposed by various Asian traditions. Of course, most westerners are still attracted to Buddhism by the rich Baroque trappings of the Tibetans, the subtle Theravada traditions of southeast Asia or the spare paradoxes in Zen cultures. 
From a Buddhist perspective, an economic system that sustains itself by stoking  desire and reinforcing the notion that acquiring things will not make us happier. We aquire entertaining consumer products that soon end up in landfills, but we fail to provide for some basic human needs, like health care for everyone.
Perhaps the economic lessons to be learned from Buddhism relate to the interactions between capitalism and consumerism, and their financial basis in our modern societies.  To a Buddhist these are indicators of greed in our practices of year by year increases in consumption and lack of self-discipline in our accumulation of wealth.  Something more fundamental needs to be changed, and it is not merely the ruling party or an economic system. What needs to be changed is the perspective of happiness. Buddha's happiness can be attained by the virtue of right livelihood, including righteous means of earning wealth, which includes the ethics and wisdom of sharing and giving. He pointed out more than 2500 years ago that satisfying the boundless desires cannot attain true happiness. Therefore, economic development must consider and include reduction of inequalities of poverty and wealth inequality first, before true economic growth can prevail for all those in society.
E. F. Schumacher
In the early 1950s E. F. Schumacher became interested in Asian philosophies. He was influenced by Mohandas Ghandi and G.I. Gurdjieff, and also by his friend, the Buddhist writer Edward Conze. In 1955 Schumacher went to Burma to work as an economic consultant. While he was there, he spent weekends in a Buddhist monastery learning to meditate. The meditation, he said, gave him more mental clarity than he had ever had before.  While in Burma he wrote a paper called "Economics in a Buddhist Country" in which he argued that economics does not stand on its own feet, but instead "is derived from a view of the meaning and purpose of life -- whether the economist himself knows this or not." In this paper, he wrote that a Buddhist approach to economics would be based on two principles:
  • The ideal is sufficiency, not surfeit. "Economic 'progress' is good only to the point of sufficiency, beyond that, it is evil, destructive, uneconomic." 
  • A Buddhist economy distinguishes between renewable and non-renewable resources. A civilization built on renewable resources is superior to one built on non-renewable resources.
Schumacher wrote that western economics measures "standard of living" by "consumption" and assumes a person who consumes more is better off than one who consumes less. He also discusses the fact that employers consider their workers to be "cost" to be reduced as much as possible, and that modern manufacturing uses production processes that require little skill. And he pointed to discussions among economic theories about whether full employment "pays," or whether some amount of unemployment might be better "for the economy."
"From a Buddhist point of view," Schumacher wrote, "this is standing the truth on its head by considering goods as more important than people and consumption as more important than creative activity. It means shifting the emphasis from the worker to the product of work, that is, from the human to the subhuman, a surrender to the forces of evil."
In short, Schumacher argued that an economy should exist to serve the needs of people. But in a "materialist" economy, people exist to serve the economy.
He also wrote that labour should be about more than production. Work has psychological and spiritual value also (see " Right Livelihood"), and these should be respected.
Buddhist refuges
James E. Burroughs in a 2002 paper in the Journal of Consumer Research (Vol. 29, No. 3), concludes that the unhappiest materialists are those whose materialistic and higher-order values are most conflicted.  The team first gauged people's levels of stress, materialistic values and prosocial values in the domains of family, religion and community--in keeping with the theory that some values unavoidably conflict with one another. Then in an experimental study, they ascertained the degree of conflict people felt when making a decision between the two value domains.
The unhappiest people were those with the most conflict--those who reported high prosocial and high materialistic values, says Burroughs. The other three groups--those low in materialism and high in prosocial values, those low in prosocial values and high in materialism, and those lukewarm in both arenas--reported similar, but lower levels of life stress.
Taken together, social surveys indicate that when facing a stressful event, materialistic people will experience high level of stress and will try to cope with it, unsuccessfully, using maladaptive consumption behaviors which are harmful by nature. In other words, materialism makes bad situations even worse! 
These results may extend to a wide variety of contexts, as post-traumatic stress arises from a host of events such as car accidents, criminal attacks and natural disasters. Future research should address the relationship between stress and materialism in different contexts.
Buddha offers three refuges from the life stress, which has been described as the dark side of consumerism. These refuges are the Three Jewels, also called the Three Treasures; the Buddha, the Dharma, and the Sangha.  The formal ceremony of Ti Samana Gamana (Pali), or "taking the three refuges," is performed in nearly all schools of Buddhism. However, anyone who sincerely wants to follow the Buddha's path may begin that commitment by reciting these lines:
I take refuge in the Buddha. 
I take refuge in the Dharma.
I take refuge in the Sangha
The English word refuge refers to a place of shelter and protection. In the context of life stress the Three Jewels offer shelter from feeling distressed and broken, from pain and suffering, from the fear of death.
The meaning of taking refuge in the Three Jewels is explained somewhat differently by the various schools of Buddhism. Taking the refuges will not summon supernatural spirits to come and save you. The power of the vow comes from your own sincerity and commitment. Robert Thurman, a Tibetan Buddhist and Professor of Indo-Tibetan Buddhist studies at Columbia University, said of the Three Jewels,
"Remember that awakening, freedom from suffering, salvation, if you will, liberation, omniscience, buddhahood, all come from your own understanding, your insight into your own reality. It cannot come just from the blessing of another, from some magical empowerment, from some sort of secret gimmick, or from membership in a group."
Ch'an Master Sheno-Yen said. "The genuine Three Jewels, in essence, are none other than the enlightened Buddha nature that is already inside you."
"Taking refuge in the Buddha, we learn to transform anger into compassion; taking refuge in the Dharma, we learn to transform delusion into wisdom; taking refuge in the Sangha, we learn to transform desire into generosity." (Red Pine, The Heart Sutra: The Womb of Buddhas, p. 132)