Contrary to this view, the Buddha recognizes that there are many interdependent spheres of human activity. These cannot be subjected to any simplistic reduction, but must be seen as interrelated and mutually efficacious. The Buddha took note of the importance of economics in human life and he held that for people to be capable of personal and spiritual progress, the economic foundation has to be secure.

In many sutta?s the Buddha has pointed out that poverty can lead to the decline of moral values - to stealing, lying, murder, etc., and eventually to complete social chaos. He teaches not only that economics largely determines man?s moral condition, but also that the government has a responsibility to correct any extreme economic injustice. He advises the king to look after the economic well being of his subjects. He says that the king has to give seed to the farmers for their crops and feed for their cattle, capital to the merchants and businessman to conduct their business, and jobs to the civil servants, etc.

Generosity

Buddhism promotes economic well being in society by its stress on the virtue of generosity. The Buddha teaches all his disciples, whether monks or laymen, to practice giving, to be generous and bountiful. The wealthy in particular have an obligation to give to the poor, to help and assist the poor.

The things that can be given have been minutely classified as follows:

The basic requirements are:

1. Food
2. Clothing
3. Dwelling places
4. Medicine
   

Secondary objects:

1. Vehicles
2. Books
3. Utensils, lights, seats etc.

The Buddha especially praises, the giving of food. He says that if people knew the benefits of giving food, they would not sit down to a single meal without sharing it with someone if there is an opportunity for them to do so. He says one who gives food gives the following five things and in return receives these five as its karmic result.

He gives :

1. Life (long life )
2. Beauty (good complexion)
3. Happiness
4. Strength (physical health)
5. Intelligence (mind is able to function properly)

Specific advice to laymen

The Buddha gave the following advice to a group of lay people as conducive to their happiness here and now.

(a) Energy and diligence
You have to be energetic and diligent in performing your job whether it is farming, a trade, business or a profession.

(b) Security
You have to protect your wealth.

(c) Good friendship
Associate with true friends, with wise and virtuous people who will help you and protect you, and guide you in Dhamma.

(d) Balanced livelihood
You should not be too bountiful, spending more than your means allow, and you should not be niggardly, clinging to your wealth. Avoid these extremes and spend in proportion to your income.

Then he gave them advice for their long term benefit: as (a) faith and confidence in spiritual values, (b) generosity, (c) moral discipline and (d) wisdom.

Right Livelihood
The Buddha laid down four standards of right livelihood to which a lay follower should conform.

1. He should acquire wealth only by legal means.
2. He should acquire it without violence.
3. He should acquire it honestly.
4. He should require it in ways which do not harm others.

Use of one?s wealth
The Buddha says that having acquired wealth by the proper means one should spend it for five purposes.

1. To provide for one?s own household, one?s relatives and children.
2. To make gifts to friends, to entertain them, to give them presents.
3. To protect and repair one?s property and dwelling.
4. To pay taxes and make obeisance to the deities.
5. To offer alms and requisites to the monks and brahmins.