Doughnut Economics

320 pages, 2018

Kate Raworth

economics & politics

987 books

business & management

1082 books

Takeaways

Description

Economics is a science that attempts to understand how best to distribute scarce resources. It has become obsolete, as it fails to predict, let alone prevent, financial crises and recessions. Its outdated theories have permitted extreme poverty on a global scale, while the wealth of the super-rich continues to grow year after year.

Its blind spots have led to policies that are degrading the planet's living systems on a scale that threatens all of our futures. Can it be fixed? In Doughnut Economics, Oxford academic Kate Raworth proposes a new model for economics based on human needs rather than ideology and materialism; in doing so she explains how an obsession with equilibrium has left economists helpless when facing the boom-and-bust of the real world. She reveals how equilibrium can leave us vulnerable to financial crashes - as well as ignoring issues such as inequality. She then deconstructs the character of a ‘rational economic man’ and explains what really makes us tick.

On the journey, she defines prosperity in terms of healthy relationships and quality of life rather than the number of resources consumed. The book was published in April 2016 by Penguin Random House in English (translated into 27 languages), German and Chinese, with further translations underway.

Rethinking Economic Models

In Doughnut Economics, Kate Raworth challenges the traditional economic models. She suggests that we need to move away from the growth-at-all-costs mentality and instead focus on creating a sustainable economy that benefits everyone. It's a fresh perspective that's worth exploring.

The Doughnut Concept

Raworth introduces the concept of 'Doughnut Economics', a new economic model that balances essential human needs with environmental sustainability. The idea is to stay within the doughnut's safe and just space, avoiding both deprivation and excess. It's a fascinating concept to dig into.

Importance of Sustainability

One of the key takeaways from Doughnut Economics is the importance of sustainability. Raworth argues that our current economic system is damaging the planet and we need to find a balance between economic development and environmental protection. If you're interested in sustainability, you'll find a lot of valuable insights in this book.

Critique of GDP

Raworth critiques the use of GDP as the primary measure of economic success. She suggests that it doesn't take into account social and environmental factors. This book will make you rethink what economic success really means.

Call to Action

Doughnut Economics is not just a book about economic theory. It's a call to action. Raworth encourages us to challenge the status quo and work towards creating a more equitable and sustainable economy. If you're looking for inspiration to make a difference, this book is a great place to start.

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Doughnut Economics, bursts through the system of thought that has led to the crises we now face. It is a breakthrough narrative for understanding and participating in economic change.

George Monbiot - Environmental Activist

Raworth's Doughnut Economics rethinks the 'science' of economics and puts humanity back into the economic equation. It's a wake-up call for economists.

Tim Harford - Economist, Journalist

Doughnut Economics is a sharp, insightful and more humane approach to economic theory. It's a must-read for anyone who wants to understand the economic game we're playing.