Key Lists ↑

7 Ways to Think Like a 21st Century Economist

aka: Doughtnut Economics

These come from Kate Raworth’s book Doughnut Economics.

1. Change the Goal

aka: From GDP to the Doughnut

Traditional economics sets the goal of continually increasing Gross Domestic Product.

The new goal should be to maintain economic production between a floor and a ceiling, so that we produce sufficient goods and services to meet every human’s basic needs, without creating environmental degradation to the point at which we endanger a sustainable planet for ourselves and future generations.

2. See the Big Picture

aka: from self-contained market to an embedded economy

Our economy does not exist in isolation, but must be seen as embedded within human society and within nature; we must consider interactions and flows between traditional economic elements and elements of these bigger systems.

3. Nurture Human Nature

aka: from rational economic man to social adaptable humans

We are not entirely self-interested and calculating and focused solely on maximizing our own income and wealth; we are social and interdependent and quirky and creative and have fluid value systems.

4. Get Savvy With Systems

“It’s time to stop searching for the economy’s elusive control levers and start stewarding it as an ever-evolving complex system.”

5. Design to Distribute

We need to design economies to provide more even and equitable distribution of wealth and income.

6. Create to Regenerate

Design products and services for a circular economy.

7. Be Agnostic About Growth

We need economies that make us thrive, whether or not they grow.

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