The Buddha did not take life out of the context of its social and economic background; he looked at it as a whole, in all its social, economic and political aspects. His teachings on ethical, spiritual and philosophical problems are fairly well known. But little is known, particularly in the West, about his teaching on social, economic and political matters. Yet there are numerous discourses dealing with these scattered throughout the ancient Buddhist texts. Let us take only a few examples.

The Cakkavattisīhanāda-sutta of the Digha-nikāya (No. 26) clearly states that poverty (dāḷiddiya) is the cause of immorality and crimes such as theft, falsehood, violence, hatred, cruelty, etc. Kings in ancient times, like governments today, tried to suppress crime through punishment. The Kūṭadanta-sutta of the same Nikāya explains how futile this is. It says that this method can never be successful. Instead, the Buddha suggests that, in order to eradicate crime, the economic condition of the people should be improved: grain and other facilities for agriculture should be provided for farmers and cultivators; capital should be provided for traders and those engaged in business; adequate wages should be paid to those who are employed. When people are thus provided for with opportunities for earning a sufficient income, they will be contented, will have no fear or anxiety, and consequently the country will be peaceful and free from crime.

Because of this, the Buddha told lay people how important it is to improve their economic condition.