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.

I agree completely with George Monbiot's review. This book is a comprehensive tour de force of the systems and mind set required for our survival. Doughnut Economics should become the basis for the education of our children, and ourselves. There's no esoteric language found within its pages, it can be read and understood by everyone. The books content is quite dense so it's not the sort of book to skim through quickly. It is evident that Kate Raworth has completely immersed herself in the subject over many years, drawn together the most important strands, then with a dash of brilliance, allowed herself to distill the simple essence of necessary change into one book. Our consciousness needs a leg up - this book can do it. Our political and business infrastructure seems set like stone in the old order. Shifting this mass in any meaningful way will not happen unless we demand it. Currently all political parties are resolute in their determination to look and go backwards. They maintain that there are no solutions except more of the same and are comfortable with this since their proponents gain so much personally from these policies. The biggest political passion of the moment is fiddling with Brexit while Earth burns. Thus do the years slide by. Pressure will have to come from the bottom up. The solutions are here in this book but don't underestimate the opposition from the established order. The fact that the economics departments of universities around the world are still teaching the same old neo-con claptrap Voodoo science without reference to any other science or even economic history is a crime of the highest order. If this continues for much longer the future death of millions, a genocide, the greatest crime against humanity, will be fairly placed on their heads. Doughnut Economics is the most enlightened book on economics for 100 years - it brings it all together beautifully. Read it and press for change. With these tools and more like them we may just make it. PS. Here are some puzzles for growth addicts. Imagine all the wealth of an Ancient Egyptian King gathered together to fill a 1 meter cube box, then allow 4% growth per year. How big is the box now? There are some good videos on YouTube - search Exponential Function to immerse yourself in the challenge. Answer. The box is now millions of times bigger than our solar system. Any conventional notions we may hold of reasonable economic growth explode, double quick, under the lens of real scientific inquiry. A 2% loss of rare materials in the production cycle goes equally badly in the opposite direction, rapidly towards zero materials remaining for future generations. Here's another puzzle - if we continue to use energy on current trends, from whatever source, renewable or not, how long before we boil the oceans dry? If you need any help solving this one ask a physicist, an economist will have nothing to offer. The Exponential Function is the simplest and toughest reality check of what is sustainable and what is not, so welcome to hard science Mr Economic Man.

For this review I need to decouple my feelings about the author from those about the book. Firstlh - and I think most importantly, she seems to be debating somewhat dishonestly from a degrowth position. Much as all sorts of conspiracy theorists debate by “just asking questions” - this feels like she’s wrestling with the question “how degrowth can you be and still have a highly paid career briefing CEOs and speaking at Davos?”. This would be a much better (although likely less well selling) book if she stated her degrowth position and explored what that really means. In terms of style, I find this a somewhere between Yuval Harari and Malcom Gladwell in repackaging and sharing other peoples ideas. Which leads me to my second complaint about this self styled “renegade economist” - it’s very notable how many of the people she quotes are NYT bestseller list inhabiting men, and in particular how few women she quotes. It seemed particularly egregious to me how much she quoted Brynjolfsson, for example, without ever quoting the vastly more relevant Carlota Perez. She also seems to be of the opinion that economists are powerful, important people. This may be true - especially in the minds of economists, but honestly just seems sweet. With all that said - I think she does a good job of synthesizing a lot of different concepts and placing them in a context that makes a lot of sense. Bringing in systems thinking, pointing out the limits of neoliberal economics and sharing some historical context of how we got to where we are now, and also laying out that it is going to change, seems well done.

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

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

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

A solid overview of how economics can be remade as a discipline that focuses on delivering a more balanced, more prosperous society.

Modern economic theory has failed in reality. A revolutionary approach is needed to fix growing inequality and this book offers controversial alternatives that are likely to work. An invaluable approach to modern dilemmas