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Doughnut Economics

Doughnut Economics

By Kate Raworth

Seven Ways to Think Like a 21st-Century Economist. Random House Business Books, 2017.

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16 mins read

13 Key insights

A brief summary of Doughnut Economics

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.

Key insights in Doughnut Economics

1
The “GDP” measures economic health yet fails to account for happiness, security, and overall well-being
2
“Doughnut” model economics balances basic human needs with the Earth’s environmental limitations
3
Samuelson’s “Circular Flow” illustrates how income moves and merges, but the “Embedded Economy” model is more relevant to today’s economy
4
Homo economicus demonstrates a selfish, rational man, but the Black-Scholes model leaves room for doubt
5
Adapting our thoughts and behavior to embrace our cooperative and social sides is key to economic growth
6
Equilibrium theory dominated economics for a century before problems arose and complexity “systems” were embraced
7
Pareto and Kuznets found economic “patterns” demonstrating income inequality; the solution is to redistribute wealth
8
The Environmental Kuznets Curve shows degradation is occurring at an alarming rate, and few corporations are concerned about it
9
To protect the Environment, we need increased energy consumption taxes, regenerative cities, and open-source networks
10
GDP growth cannot last forever; we must separate humanity from economic wealth if we are going to thrive
11
Summary of the key insights
12
Selected critiques in brief
13
Final word

Who should read Doughnut Economics

Economists • politicians • college students • entrepreneurs • business owners • anyone with an interest in global financial systems

About the author of Doughnut Economics

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.”

author avatar

Kate Raworth

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