Sufficiency Economy Philosophy can serve as a valuable guiding principle for the decision-making process of each individual and each household, based on the three concepts of moderation, reasonableness, and the need for self-immunity.
At first, these three concepts may seem too abstract to apply to one’s daily activities, but the following example, even though it is quite simple, should be instructive.
Neoclassical economics and general economic principles usually assume that people maximize their utilities, but, in reality, it is quite difficult to do so. Upon reflection, we realize that many of our decisions are influenced by recommendations from our friends, our family and, more importantly, by the desire to be recognized by others.