Stoic Economics: A Theoretical Examination of a Shift in Consumer Philosophy towards Stoicism

Abstract

Since the advent of modern economic thought, particularly within Behavioral Economics, consumer behavior has primarily been driven by psychological and utilitarian beliefs that prioritize self-interest and material accumulation. Now, as consumer mindfulness becomes a prevalent issue, we look to philosophy — rather than psychology — as a framework for consumer behavior. Stoicism, originating in Ancient Greece and Rome, has always been applied to individual well-being but has never been considered in the context of collective economic behavior, despite its basis aligning well with the basic economic problem of scarcity. We examine whether and to what extent virtue-based principles of Stoicism can shift economic activity, both for consumers and the economy at large. Through understanding of key tenets of stoicism, and translating these philosophical ideals to economic assumptions, we find that the stoic focus on long-term stability, rational decision-making, and the use of wealth for public good leads to deviations from the status quo of market activity.