Question

Explain the economic issues that Confucius and Kautilya (Indian ancient Philosopher) discussed.

Answer 1

---> Confucius thoughts on economy :--- according to him, Social production is the material base on which humans live. Attaching importance to production is basic to economic thought. Confucius was not an empty talker. He advocated an active participation in business and social activities, and always attached importance to production. Being 'populous, rich and educated', together with having 'sufficient food, sufficient military equipment and the confidence of the people in the ruler' constituted another plank on the economic thought of Confucius.He held that,the quality of your population is more important than the quality of your armaments; good governance comes before 'economic miracles'. According to him, the economy does not benefit from the profit motive alone. If we are to follow Confucius, it benefits from a society which values morality.

----> Kautilya's thoughts on economy:-- according to Kautilya's Arthashastra, material well being is supreme.spiritual good and sensual pleasure all depend on material well being. To Kautilya, the state was to promote the economic welfare of the people and fully regulate its economic life. The state had to give subsidies for the development of trade; agriculture/ irrigation, mines, cattle welfare etc. Economic Functions of State: his concept of state is founded on Industrial edifice. According to him, there are guiding principles for the state, first, the state should undertake those industries which help directly in making the nation self-sufficient and self-reliant, and e.g., gold, silver, diamonds and iron and other metals should be in the charge of the state. Secondly, the activities related to farming, spinning and weaving, arts and crafts should be left to the individuals and the right of the ownership should be recognised. Finally, the state should see that the activities relating to production, distribution and consumption are carried out efficiently and in accordance with the rules framed by it. The duties of men, women, saints and sages, lords and the kings used to be clearly defined so that their observance may help in achieving the objective. The private people can also undertake the production of goods under the supervision of the State. In addition to the above function, the State regulated the wages and working condition of workers, and helped the farmers in times of calamities.