I am
an ordinary human being, I am no genius and I am completely anonymous. There
are thousands or millions of people like me who aspire for a better financial
freedom in their life, a good life, free to do whatever we please within the
boundaries of our own morality and culture. So in a way, our aspiration of good
life, achieved by economic well-being needs to be within our framework of our
own religion. Sometimes a narrow framework developed from misinterpretation of
religious sayings restricts our economic activity but mostly, in the context of
modern 21st century it
is not. While at a personal level there is no dialectics between economics and
religion it is there at a macro level. If a religion is organized one with a
mandate to convert and spread, then economic power might become very useful in
achieving that objective. After all, morality and culture can only have a
meaning when one survives. The fundamental instinct of every human being to
survive can only be appeased by economic success, but all these attainment
loses significance if there is no morality and culture to give it a meaning. In
a way, economy is needed to pull a man out of poverty but not enough to
dissolve his wretchedness. It is also not self-sustaining as an unhappy man
will not perform well enough to climb into high echelons of economics and endure
there.
On
our planet there are multiple religions and each having many followers choosing
to live their life in one way or the other. It is their religion; their belief
is what gives meaning to their life. The economic judgments that these
individuals make to live their life according to their faith is what micro
decisions are about. A company doing business need to be cognizant about these
and act accordingly so that it can achieve its mission, whatever may be, profit
maximization or social welfare. Collected together these micro decisions become
broad economic behavior. For centuries, we have seen various religions
endeavoring to spread their faith, and increase the number of followers, which
was the indicator of that religion’s power or influence level. All these
lead to dynamics of macro demand for goods and services, say certain product
maybe of high demand in Saudi Arabia but may not be worth that much in England.
Presently world religion are either organized (like Christianity, Islam) or
personal (like Hinduism), this fragmentation also have a profound effect on the
individuals behavior and thus in turn macro demand/supply curve. Also
throughout history, we have seen many cases where the society – not only
internationally, but also domestically - is under dispute among polarized rival
religions, sometimes they lead to holy war and destroy the economy. At the
other extreme, a tolerant society promoting diversity, at an international or
national level can lead to a happy ending with a synergy effects. Economic growths
is either, about increasing the size of the Roti via higher productivity or
make a new roti with a different taste so that there are two roti’s instead of
one. So yes, religions do have a deep impact on economics and that is
manifested by defining an individual’s morality framework that subsequently
influences the culture and behavior.
Religious
practices impose an immediate trade-off, as they require time and resources
that are then unavailable for an alternative way. However there are many
alternative ways, each and every religion have their own chosen way. For every
opinion there is route. Also for the atheist, there is a way, the way to find
the meaning of life and live in joy, fulfillment and freedom. The fundamental
aspect that is common to all forms of religion or no religion is that they
prescribe rules of behavior, or practices, which constrain followers, with
varying degrees of strictness. All of them have a common goal, which is to give
a better life to an individual. This is also the very reason for the existence
of the subject of study of economics. Its approach is not through prescriptions
on human morality but through efficient allocation of resources. This work best
when there exists diversity, increased choices provides numerous ways to
arrange resources for higher productivity or building a new economic engine.
This, I think is the cause of affluence of the modern society. Twenty first
century society is much more multicultural, multi religious than in any other
in known human history.
The
other side of the argument is that if the world had only one religion, can we
say we would have been economically better off. My answer to it will be ‘no’
simply because we will be ignoring the all the other possibilities. Diversity
is the key, while choosing a particular way to live a life brings coherence,
along with it, it is also important to be aware of multiplicity of evolution
and ready to absorb newer, different ideas (be it religious or economic) that
might enhance our way to live life.