Doughnut Economics: The must-read book that redefines economics for a world in crisis

At its worst, economics is a highly mathematical undertaking that is completely useless for understanding anything about the real world. Rather than explain inflation or international trade, you get utility functions, aggregate supply and demand curves that were supposed to wind up in some incomprehensible equilibrium, so obscure and bound up in such highly abstract assumptions that only a mathematician could understand it all and that utterly lacked any real-world relevance.For all of these reasons, I found Doughnut Economics both fascinating and useful. Raworth challenges academic "economic science" and offers a number of new notions that I hope will fundamentally re-shape the field. In addition, the book is lucidly written, which stands in stark contrast to the abstruse crap that so many economists churn out, where they twist logic into bizarre configurations and examples. It is practical, based on common sense notions, and relatively easy to understand. Raworth offers 7 "ways to think".First, we need to change the goal from one of unending "growth" of GDP to an equilibrium state inside the doughnut shape: in the hole, social needs are neglected; outside the edge, ecological concerns are violated. The doughnut encompasses a number of factors in dynamic balance, including social equity, work and income, global warming, resource depletion, etc.Second, instead of a hermetically sealed engine that flows between business and households in an unending circle, which neglects the bigger picture, we need to view the economy as embedded in both an evolving society and the larger ecosystem.Third, we must concentrate not on a single, abstract, selfish individual maximizing his/her well being in consumption of goods, but on socially adaptive communities of individuals who must work together for many other intangible values.Fourth, we need to integrate a systems approach, replacing the artificial calculation of an abstract equilibrium state, i.e. feedback loops of factors offer a more realistic image and concept of the economy than the simple assignment of an optimal overall price. Needs change and act upon each other dynamically, there is no "Pareto optimality".Fifth, the economic system should be designed to distribute resources fairly; inequality, in her view, is a failure of the system, not its inevitable outcome. This introduces a strong, legitimate role for public policy and activist government rather than some assumption that the "market" will achieve fairness or efficiency.Sixth, taking sustainability into account, the system can be set up to regenerate itself rather than simply use natural resources as inputs.Seventh, we have to give up the notion that GDP growth is the most important measure of how well the economy functions. Not only is perpetual growth a physical impossibility - indeed we are reaching the limits of capitalist growth rates at the levels we knew from 1870 to 1970, the golden age - but it diverts attention from more pressing tasks.Raworth gets into lots of technical detail. I could not do justice to her model in this description, indeed I will have to go back and re-read the book a few more times before I fully grasp it myself. Whatever, this is a marvelously stimulating intellectual journey that is also of vital importance.I do have a criticism of the tone of the book. Some of it reads like a TED talk, a formula that bores me to tears. The examples given are also too brief for my taste and need to be expanded upon in much great detail. Finally, there is a bit of zaniness in it that bothered me on occasion. For example, I would rather call it a torus than a doughnut, as I believe the associations with that are more serious. Perhaps it's nitpicking.Recommended with enthusiasm.

Modern economics is clearly not fit for purpose. It is based on false axioms like unbounded rationality, and individual optimisation. It is too narrow a model, not including many important and linked systems, like the family, the state, and the biosphere. It requires continual exponential growth, which is physically impossible, and is destroying the planet. And its predictions have been repeatedly falsified, from repeated financial crashes to ever-increasing wealth inequalities. So what to do?Raworth lays out a plan for a better economics, based on the visual image of the doughnut. The outer edge represents an upper level of activity, beyond which activity is unsustainable, due to climate change, biodiversity and habitat loss, pollution, etc. And the inner edge represents a baseline activity, below which people cannot thrive: the need for food, water, shelter, healthcare, education, equality, justice, etc. (I would have liked some acknowledgement that it is necessary to demonstrate that the inner edge is indeed inside the outer edge!)The doughnut forms a useful image to illustrate the goal of the new economics; Raworth then carefully unpicks the requirements to achieve this, identifying seven facets of the new approach. Each chapter digs into a particular facet, such as the goal of economics, the need for systems thinking, the issue of growth, and more. Starting with a brief review of the historical development of the current theories, Raworth shows how they came about, how that often the originators emphasised they were mere approximations or idealisations, yet that they have subsequently come to be been set in stone. This background serves to demonstrate that changing the models is not somehow going counter to some established truth, but is rather correcting old fundamental errors. So next Raworth outlines how to correct the errors, giving a new model and new requirements. And just when each chapter gets to the point where you are thinking “yes, this is all very well and good, but it would never be possible to make that change”, Raworth gives examples of how that change is already happening in certain (albeit often small and local) cases.So this is informative, constructive, and hopeful. Everyone should read it, and act on it.

Ottimo libro che mostra come non solo è possibile ma anche conveniente cambiare sistema economico

Que haurien de llegir tots els governants del món.

Respondeu às minhas dúvidas e ansiedades sobre como seria o mundo pós pandemia. Um roteiro para enfrentarmos enormes desafios que já enfrentamos.

Es un excelente libro que rompe con varias ideas y mitos de la economía clásica, bien escrito y estructurado. Una obra necesaria para todos aquellos desencantados con la economía y la manera en que dirige a la sociedad actual.

Easy to understand for non economists, fresh and positive approach, full of solutions only politicians would oppose to keep their power, but all possible