Demand & Supply
According to the Western school of economics, supply is limited whereas demand is believed to be almost infinite. However, in Buddhism or Buddhist Economy, people are taught and trained to control or limit their ‘demand.’ This is the fundamental difference between modern economics and the ideal Buddhist economy which transforms all other principles in Buddhist economics or ‘Dhammonomics’ (Dhamma + Economics).
Considering our equation where demand in Dhammonomics comprises of Need and Want, the shortage occurs when Supply is less than Need + Want. This can be solved by eliminating or lessening the unnecessary Want (caused by Sensual Desire and Craving) to still create the utility of satisfaction in the form of equilibrium or surplus during the condition of limited supply.
In addition, as Demand is mainly dominated by ‘need’ and less ‘want,’ the Demand graph will shift to the left and form a radius that meets with lowered scope of supply.
By Pittaya Wong
1 August 2018