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Economics Needs a Dose of Ancient Greek Wisdom

Authors
  • Name
    Callum van den Enden
    Twitter

Overview

Ancient Greek philosophy meets modern economics. This article explores how the Greeks' focus on eudaimonia can reshape our economic thinking, emphasizing individual and societal well-being over pure profit.

Introduction

We're taught economics is about numbers, graphs, and maximizing profit. It's the "dismal science," right? Well, maybe not. Etienne Helmer's work on ancient Greek economics has got me thinking. It turns out the Greeks had a different perspective – one that prioritized eudaimonia, often translated as "flourishing" or "living well." This isn't about money; it's about a fulfilling life within a thriving community. And that's something I think we've lost sight of.

The Ancient Greek Approach: Economics for a Good Life

The ancient Greeks didn't separate economics from ethics and societal well-being. Their economic activity was deeply intertwined with their values and overall goals for a good life. Imagine that! Their focus was on:

  • Individual Development: Cultivating virtues, pursuing knowledge, and realizing one's full potential. (Think Aristotle, not Amazon.)
  • Civic Engagement: Participating in the community, contributing to the common good, and upholding justice. (More agora, less Instagram.)
  • Harmony with Nature: Recognizing the interconnectedness of human society and the natural world, and living sustainably. (Sounds pretty relevant today, doesn't it?)

Our Modern Predicament: Profit Over Purpose?

Our modern economic system, in contrast, often prioritizes profit maximization above all else. This narrow focus can lead to some serious downsides:

  • Social Inequality: The relentless pursuit of profit can exacerbate existing inequalities and create new ones.
  • Environmental Degradation: Unsustainable practices driven by profit can damage the environment and threaten future generations. (We've all seen the headlines.)
  • Loss of Meaning: Focusing solely on material wealth can leave us feeling empty and unfulfilled, even if we're financially successful. (That "is this all there is?" feeling.)

Bridging the Gap: Lessons from the Greeks

So, how do we bridge the gap between our current economic reality and the ancient Greek ideal of eudaimonia? It's not about ditching capitalism and going back to bartering olives. It's about rethinking our priorities and asking some fundamental questions:

  • What kind of society do we want to create? One driven by profit, or one that values human flourishing and the common good?
  • How can economic activity contribute to individual and societal well-being? Can we create businesses and economic systems that prioritize purpose over profit, or at least find a better balance?
  • What role does ethics play in economics? Can we create ethical frameworks that guide economic decision-making and ensure that it serves the greater good?

Bhutan's fourth king coined the term "Gross National Happiness" in the 70's, and this feels like a step in the right direction for me. It certainly resonated when I was an edgy arts/economics student advocating for the triple-bottom line and sustainable development.

The GNH Index framework comprises nine integral domains, encompassing psychological wellbeing, health, balanced time use, education, cultural diversity and resilience, good governance, community vitality, ecological diversity and resilience, and living standards.

Stunning.

Reframing the Narrative: From Dismal Science to Flourishing Future

Economics doesn't have to be a dismal science. By incorporating the ancient Greek concept of eudaimonia, we can create a more holistic and humane economic system – one that prioritizes human flourishing, social justice, and environmental sustainability. It's a challenging but essential task. Let's rethink the narrative and build a future where economics serves the good life, not just the bottom line.