On the Need to Revisit the Ethical Structure of Economics in the Light of Advaita VedÄ nta

The ethical structure of economics, based on the standard of economic maximization of satisfaction, explains all kinds of behaviour in terms of maximization of self-interest. This paper shows that interventions from the philosophy of Advaita VedÄ nta would enable economics to recognize and accommodate, within its ethical structure, the important role played by altruistic and moral commitments in the decision-making deliberations of individuals. The concept-based paper deduces the primary or basic causes for the limitations in the ethical structure of economics and, in this background, expounds the ethical philosophy of Advaita VedÄ nta, its important takeaways and implications for the ethical structure of economics. The ethical ideal offered by Advaita VedÄ nta, unlike that of economics, is based on the standard of self-purification through intention/duty. The ideal is neither committed to the naturalistic fallacy (the identification of the ‘good’ with ‘satisfaction/pleasure’) nor upholds a position of maximization of consequences. By incorporating the perspectives of Advaita VedÄ nta into the ethical structure of economics, we may evolve an ethical standard that would exhibit, among other factors, the following implications: (a) the ethical standard would enlarge the scope of economics, without dismantling the present ethical structure of economics; (b) economic models built based on such an ethical standard would not only be comprehensive theoretical models and empirically- verifiable practical models, but more importantly, ethically-validated holistic models as well; and (c) the ethical standard and the models build upon it would also enrich other disciplines like management science, commerce, etc., which also share the strategies and models of economics.