Doughnut Economics
By Kate Raworth
Seven Ways to Think Like a 21st-Century Economist. Random House Business Books, 2017.
Summary of Doughnut Economics book by Kate Raworth
A new approach to finance based on the author’s “doughnut model” of economics, with eye-opening discussions on what is wrong with today’s financial systems and how we can improve them for future generations.
Chapters in Doughnut Economics book summary
The “GDP” measures economic health yet fails to account for happiness, security, and overall well-being
“Doughnut” model economics balances basic human needs with the Earth’s environmental limitations
Samuelson’s “Circular Flow” illustrates how income moves and merges, but the “Embedded Economy” model is more relevant to today’s economy
Homo economicus demonstrates a selfish, rational man, but the Black-Scholes model leaves room for doubt
Adapting our thoughts and behavior to embrace our cooperative and social sides is key to economic growth
Equilibrium theory dominated economics for a century before problems arose and complexity “systems” were embraced
Pareto and Kuznets found economic “patterns” demonstrating income inequality; the solution is to redistribute wealth
The Environmental Kuznets Curve shows degradation is occurring at an alarming rate, and few corporations are concerned about it
To protect the Environment, we need increased energy consumption taxes, regenerative cities, and open-source networks
GDP growth cannot last forever; we must separate humanity from economic wealth if we are going to thrive
Summary of the key insights
Selected critiques in brief
Final word
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Doughnut Economics — Book Summary Snapshot
Who should read Doughnut Economics book
- politicians
- college students
- entrepreneurs
- business owners
- anyone with an interest in global financial systems
About the author of Doughnut Economics
Kate Raworth
Internationally acclaimed economist Kate Raworth teaches at Oxford University’s Environmental Change Institute and serves on the Stockholm School of Economics’ Global Challenges Program. Her text Doughnut Economics was named “The best book of 2017 for economics” by Financial Times, and The Guardian lists her as “one of the top ten tweeters on economic transformation.”
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