Kate Raworth, a renegade economist, discusses the need for a new economic narrative. She proposes a donut-shaped model where the goal is to meet the needs of all within the means of the planet. The podcast explores measuring individual impact on planetary boundaries and challenges the belief in endless economic growth. It emphasizes the power of changing paradigms and aims to challenge established perceptions and narratives about economics.
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Quick takeaways
The podcast challenges the traditional focus on market forces and urges for a more holistic understanding of economics that includes social and environmental concerns.
The episode emphasizes the importance of rethinking traditional diagrams and images used in economics to better reflect the complexity and interconnectedness of economic systems.
Deep dives
Moving away from a focus on market forces
The podcast episode criticizes the narrow focus on market forces as the solution to economic issues. It argues that the desire to make economics a science like physics has led to a reliance on mechanical equilibrium and the belief that market forces will naturally bring the economy to the right position. This perspective has given rise to neoliberalism's emphasis on letting the market do its work without interference. The episode suggests that this approach has led to a disregard for social and environmental concerns.
Reimagining the economy
The podcast explores the need to reimagine economics and its fundamental concepts. It emphasizes the importance of revisiting and reshaping the underlying theories and assumptions of the discipline. The speaker shares their personal experience of being frustrated with the narrow focus of traditional economics and how they pursued alternative perspectives. They advocate for expanding the understanding of economics beyond just the market and the state, to include the household and the commons as important dimensions of economic activity. They propose a vision of economics that focuses on managing our planetary household for the benefit of all its inhabitants.
Redrawing the pictures of economics
The podcast episode highlights the significance of images and diagrams in shaping economic thinking. It argues that the conventional diagrams, such as the supply and demand curve, limit our understanding of the economy and reinforce specific assumptions. The speaker suggests redrawing these diagrams to better reflect the complexity and interconnectedness of economic systems. By reimagining and rethinking the foundational pictures of economics, a more holistic and accurate understanding of the economy can be developed.
Moving beyond growth addiction
The podcast challenges the addiction to economic growth and the assumption that continuous growth is essential for progress. It emphasizes the need to shift from a growth-focused mindset to one that prioritizes human well-being and ecological sustainability. The speaker proposes an alternative vision represented by the donut diagram, where the goal is to meet the needs of all within the means of the planet. This reframing of progress questions the dominant narrative and invites a more nuanced and thoughtful approach to economic development.
When you think about economics, what images come to mind? Maybe a supply and demand graph? Or a blackboard with complex equations scrawled across it? These images are based on a 19th century view of economics, one that is outdated and even dangerous, as we're beginning to see more and more. In this Upstream Conversation, we explore why the economy should look more like a doughnut. In her new book, Doughnut Economics, renegade economist Kate Raworth explains why it's time to explore new images that tell different stories about the economy. Kate walks us through the many aspects of her proposal for a new picture of economics, while discrediting some of the old assumptions and exploring new solutions. Our conversation moves readily from economic history to complexity, from system design to wealth inequality, and from poverty to…doughnuts.
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