Donut Economics is a new school of economics, that hopes to change it forever. The main idea behind donut economics is that we should stop trying to grow our economies as much as possible and start trying to build more equitable and sustainable systems. 'Growth agnostic' is the term that means growth should not be the main goal.
What does all this have to do with a donut, you might ask? As you can see below, the donut hole is the space where humans cannot meet their basic needs, but the outside of the donut is where we overuse our resources. The donut represents the 'sweet' spot, in which humanity should try to live.
I still believe that GDP is a good measure of welfare, and we should aim for growth, as in the long run our standard of living is determined by our value added. And this article does not argue we should leave economic models and switch to donuts. But I think Donut Economics is useful for reminding us not everything is the size of the pie, distribution and sustainability also matter, much more than we realize now. Even in this blog, we often write about inflation, rates, and growth, but not nearly as much on measures of sustainability and equity. I am hopeful that Donut Economics will bring a new perspective and help us reconsider what really matters.
Source: Donut Economics by Kate Raworth
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