Economist Kate Raworth challenges traditional economic models with Doughnut Economics, advocating for a shift towards regenerative and distributive economies. She explores the benefits of employee ownership, rethinks GDP growth, and offers alternative business models for a more sustainable future.
Doughnut Economics challenges growth addiction and advocates for regenerative business models.
Businesses urged to shift towards socially responsible practices for positive societal impact.
Finance sector needs a transformative shift towards regenerative and community-centered models.
Deep dives
Redefining Economics through Donut Economics
Economist Kate Rayworth introduces the concept of Donut Economics, promoting seven ways to think like a 21st-century economist. This approach challenges traditional economic thinking by reframing how we understand economics, advocating to break the addiction to growth and redesign money, finance, and business strategies. Through discussions with Kate, the podcast explores the importance of shifting our economic mindset towards more sustainable and inclusive practices.
Transforming Business Models Towards Generosity and Social Impact
The conversation delves into the necessity for businesses to evolve beyond profit-driven models to embrace more socially responsible practices. Companies are urged to move from simplistic profit-seeking approaches to ones that focus on creating positive contributions to society and the environment. With examples of businesses adapting to meet higher expectations from employees and consumers, the podcast emphasizes the potential for businesses to drive positive change while ensuring sustainability and social impact.
Redesigning Finance for a Regenerative Economy
The discussion highlights the need to revolutionize the finance sector towards a regenerative economy model. By exploring alternative financial systems emphasizing ethical investments and community-centered banking, economist Kate Rayworth and the podcast underscore the potential for reshaping money's design. They advocate for redefining the purpose of finance to support transformative initiatives that prioritize societal benefits over profit maximization, challenging existing structures to enable a more equitable and sustainable economic landscape.
False Beliefs in Laws of Economic Motion
The podcast delves into debunking two widely held beliefs in economics: the idea that inequality and environmental degradation follow laws of motion that require getting worse before getting better. Originally thought to be essential economic patterns, newer economists with better analysis have proven them false. The podcast emphasizes that designing economies to be equal and respectful of the environment is a deliberate choice rather than following predefined laws of economic motion.
Impact of Growth Economics on Society
The episode explores the concept of growth in economics, particularly in the context of GDP increase, and how it has become a dominant metric driving economic and societal endeavors. The interview highlights the addictive nature of continual GDP growth, impacting not only financial structures but also societal engagement and well-being. It raises concerns about the pressure for incessant growth and discusses potential alternatives that prioritize distributive and regenerative economic models over the prevalent growth-centric approach.
Our guest this week is economist Kate Raworth, and in her new book, Doughnut Economics, she sets out seven key ways to fundamentally reframe our understanding of what economics is and does. Along the way, she points out how we can break our addiction to growth; redesign money, finance, and business to be in service to people; and create economies that are regenerative and distributive by design.
Named after the now-iconic “doughnut” image that Raworth first drew to depict a sweet spot of human prosperity (an image that appealed to the Occupy Movement, the United Nations, eco-activists, and business leaders alike), Doughnut Economics offers a radically new compass for guiding global development, government policy, and corporate strategy, and sets new standards for what economic success looks like.
