Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist

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Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist Page 37

by Kate Raworth


  and Circular Flow, 63–4, 87

  and complex systems, 134, 138, 139, 140, 141, 145–7

  cross-border flows, 89

  deregulation, 87

  derivatives, 100–101, 149

  and distribution, 169, 170, 173, 182–4, 198–9, 201

  and efficient market hypothesis, 63, 68

  and Embedded Economy, 71, 86–8

  and financial-instability hypothesis, 87, 146

  and GDP growth, 38

  and media, 7–8

  mobile banking, 199–200

  and money creation, 87, 182–5

  and regeneration, 227, 229, 234–7

  in service to life, 159, 234–7

  stakeholder finance, 190

  and sustainability, 216, 235–6, 239

  financial crisis (2008), 1–4, 5, 40, 63, 86, 141, 144, 278, 290

  and efficient market hypothesis, 87

  and equilibrium theory, 134, 145

  and financial-instability hypothesis, 87

  and inequality, 90, 170, 172, 175

  and money creation, 182

  and worker’s rights, 278

  financial flows, 89

  Financial Times, 183, 266, 289

  financial-instability hypothesis, 87, 146

  First Green Bank, 236

  First World War (1914–18), 166, 170

  Fisher, Irving, 183

  fluid values, 102, 106–9

  food, 3, 43, 45, 50, 54, 58, 59, 89, 198

  food banks, 165

  food price crisis (2007–8), 89, 90, 180

  Ford, 277–8

  foreign direct investment, 89

  forest conservation, 121–2

  fossil fuels, 59, 73, 75, 92, 212, 260, 263

  Foundations of Economic Analysis (Samuelson), 17–18

  Foxconn, 193

  framing, 22–3

  France, 43, 165, 196, 238, 254, 256, 281, 290

  Frank, Robert, 100

  free market, 33, 37, 67, 68, 70, 81–2, 86, 90

  free open-source hardware (FOSH), 196–7

  free open-source software (FOSS), 196

  free trade, 70, 90

  Freeman, Ralph, 18–19

  freshwater cycle, 48–9

  Freud, Sigmund, 107, 281

  Friedman, Benjamin, 258

  Friedman, Milton, 34, 62, 66–9, 84–5, 88, 99, 183, 232

  Friends of the Earth, 54

  Full World, 75

  Fuller, Buckminster, 4

  Fullerton, John, 234–6, 273

  G

  G20, 31, 56, 276, 279–80

  G77, 55

  Gal, Orit, 141

  Gandhi, Mohandas, 42, 293

  Gangnam Style, 145

  Gardens of Democracy, The (Liu & Hanauer), 158

  gender equality, 45, 51–2, 57, 78–9, 85, 88, 118–19, 124, 171, 198

  generosity, 218–19, 223–9

  geometry, 13, 15

  George, Henry, 149, 179

  Georgescu-Roegen, Nicholas, 252

  geothermal energy, 221

  Gerhardt, Sue, 283

  Germany, 2, 41, 100, 118, 165, 189, 211, 213, 254, 256, 260, 274

  Gessel, Silvio, 274

  Ghent, Belgium, 236

  Gift Relationship, The (Titmuss), 118–19

  Gigerenzer, Gerd, 112–14

  Gintis, Herb, 104

  GiveDirectly, 200

  Glass–Steagall Act (1933), 87

  Glennon, Roger, 214

  Global Alliance for Tax Justice, 277

  global material footprints, 210–11

  Global Village Construction Set, 196

  globalisation, 89

  Goerner, Sally, 175–6

  Goffmann, Erving, 22

  Going for Growth, 255

  golden rule, 91

  Goldman Sachs, 149, 170

  Gómez-Baggethun, Erik, 122

  Goodall, Chris, 211

  Goodwin, Neva, 79

  Goody, Jade, 124

  Google, 192

  Gore, Albert ‘Al’, 172

  Gorgons, 244, 256, 257, 266

  graffiti, 15, 25, 287

  Great Acceleration, 46, 253–4

  Great Depression (1929–39), 37, 70, 170, 173, 183, 275, 277, 278

  Great Moderation, 146

  Greece, Ancient, 4, 13, 32, 48, 54, 56–7, 160, 244

  green growth, 41, 210, 243–85

  Greenham, Tony, 185

  greenhouse gas emissions, 31, 46, 50, 75–6, 141, 152–4

  and decoupling, 260, 266

  and Environmental Kuznets Curve, 208, 210

  and forests, 50, 52

  and G20, 31

  and inequality, 58

  reduction of, 184, 201–2, 213, 216–18, 223–7, 239–41, 256, 259–60, 266, 298

  stock–flow dynamics, 152–4

  and taxation, 201, 213

  Greenland, 141, 154

  Greenpeace, 9

  Greenspan, Alan, 87

  Greenwich, London, 290

  Grenoble, France, 281

  Griffiths, Brian, 170

  gross domestic product (GDP), 25, 31–2, 35–43, 57, 60, 84, 164

  as cuckoo, 32, 35, 36, 38, 40, 54, 60, 159, 244, 256, 271

  and Environmental Kuznets Curve, 207–11

  and exponential growth, 39, 53, 246–85

  and growth agnosticism, 29–30, 240, 243–85

  and inequality, 173

  and Kuznets Curve, 167, 173, 188–9

  gross national product (GNP), 36–40

  Gross World Product, 248

  Grossman, Gene, 207–8, 210

  ‘grow now, clean up later’, 207

  Guatemala, 196

  H

  Haifa, Israel, 120

  Haldane, Andrew, 146

  Han Dynasty, 154

  Hanauer, Nick, 158

  Hansen, Pelle, 124

  Happy Planet Index, 280

  Hardin, Garrett, 69, 83, 181

  Harvard University, 2, 271, 290

  von Hayek, Friedrich, 7–8, 62, 66, 67, 143, 156, 158

  healthcare, 43, 50, 57, 85, 123, 125, 170, 176, 200, 269, 279

  Heilbroner, Robert, 53

  Henry VIII, King of England and Ireland, 180

  Hepburn, Cameron, 261

  Herbert Simon, 111

  heuristics, 113–14, 118, 123

  high-income countries

  growth, 30, 244–5, 254–72, 282

  inequality, 165, 168, 169, 171

  labour, 177, 188–9, 278

  overseas development assistance (ODA), 198–9

  resource intensive lifestyles, 46, 210–11

  trade, 90

  Hippocrates, 160

  History of Economic Analysis (Schumpeter), 21

  HIV/AIDS, 123

  Holocene epoch, 46–8, 75, 115, 253

  Homo economicus, 94–103, 109, 127–8

  Homo sapiens, 38, 104, 130

  Hong Kong, 180

  household, 78

  housing, 45, 59, 176, 182–3, 269

  Howe, Geoffrey, 67

  Hudson, Michael, 183

  Human Development Index, 9, 279

  human nature, 28

  human rights, 10, 25, 45, 49, 50, 95, 214, 233

  humanistic economics, 42

  hydropower, 118, 260, 263

  I

  Illinois, United States, 179–80

  Imago Mundi, 13

  immigration, 82, 199, 236, 266

  In Defense of Economic Growth (Beckerman), 258

  Inclusive Wealth Index, 280

  income, 51, 79–80, 82, 88, 176–8, 188–91, 194, 199–201

  India, 2, 9, 10, 42, 124, 164, 178, 196, 206–7, 242, 290

  Indonesia, 90, 105–6, 164, 168, 200

  Indus Valley civilisation, 48

  inequality, 1, 5, 25, 41, 63, 81, 88, 91, 148–52, 209

  and consumerism, 111

  and democracy, 171

  and digital revolution, 191–5

  and distribution, 163–205
<
br />   and environmental degradation, 172

  and GDP growth, 173

  and greenhouse gas emissions, 58

  and intellectual property, 195–8

  and Kuznets Curve, 29, 166–70, 173–4

  and labour ownership, 188–91

  and land ownership, 178–82

  and money creation, 182–8

  and social welfare, 171

  Success to the Successful, 148, 149, 151, 166

  inflation, 36, 248, 256, 275

  insect pollination services, 7

  Institute of Economic Affairs, 67

  institutional economics, 11

  intellectual property rights, 195–8, 204

  interest, 36, 177, 182, 184, 275–6

  Intergovernmental Panel on Climate Change, 25

  International Monetary Fund (IMF), 170, 172, 173, 183, 255, 258, 271

  Internet, 83–4, 89, 105, 192, 202, 264

  Ireland, 277

  Iroquois Onondaga Nation, 116

  Israel, 100, 103, 120

  Italy, 165, 196, 254

  J

  Jackson, Tim, 58

  Jakubowski, Marcin, 196

  Jalisco, Mexico, 217

  Japan, 168, 180, 211, 222, 254, 256, 263, 275

  Jevons, William Stanley, 16, 97–8, 131, 132, 137, 142

  John Lewis Partnership, 190

  Johnson, Lyndon Baines, 37

  Johnson, Mark, 38

  Johnson, Todd, 191

  JPMorgan Chase, 149, 234

  K

  Kahneman, Daniel, 111

  Kamkwamba, William, 202, 204

  Kasser, Tim, 125–6

  Keen, Steve, 146, 147

  Kelly, Marjorie, 190–91, 233

  Kennedy, John Fitzgerald, 37, 250

  Kennedy, Paul, 279

  Kenya, 118, 123, 180, 185–6, 199–200, 226, 292

  Keynes, John Maynard, 7–8, 22, 66, 69, 134, 184, 251, 277–8, 284, 288

  Kick It Over movement, 3, 289

  Kingston, London, 290

  Knight, Frank, 66, 99

  knowledge commons, 202–4, 229, 292

  Kokstad, South Africa, 56

  Kondratieff waves, 246

  Korzybski, Alfred, 22

  Krueger, Alan, 207–8, 210

  Kuhn, Thomas, 22

  Kumhof, Michael, 172

  Kuwait, 255

  Kuznets, Simon, 29, 36, 39–40, 166–70, 173, 174, 175, 204, 207

  KwaZulu Natal, South Africa, 56

  L

  labour ownership, 188–91

  Lake Erhai, Yunnan, 56

  Lakoff, George, 23, 38, 276

  Lamelara, Indonesia, 105–6

  land conversion, 49, 52, 299

  land ownership, 178–82

  land-value tax, 73, 149, 180

  Landesa, 178

  Landlord’s Game, The, 149

  law of demand, 16

  laws of motion, 13, 16–17, 34, 129, 131

  Lehman Brothers, 141

  Leopold, Aldo, 115

  Lesotho, 118, 199

  leverage points, 159

  Lewis, Fay, 178

  Lewis, Justin, 102

  Lewis, William Arthur, 114, 167

  Lietaer, Bernard, 175, 236

  Limits to Growth, 40, 154, 258

  Linux, 231

  Liu, Eric, 158

  living metrics, 240–42

  living purpose, 233–4

  Lomé, Togo, 231

  London School of Economics (LSE), 2, 34, 65, 290

  London Underground, 12

  loss aversion, 112

  low-income countries, 90, 164–5, 168, 173, 180, 199, 201, 209, 226, 254, 259

  Lucas, Robert, 171

  Lula da Silva, Luiz Inácio, 124

  Luxembourg, 277

  Lyle, John Tillman, 214

  Lyons, Oren, 116

  M

  M–PESA, 199–200

  MacDonald, Tim, 273

  Machiguenga, 105–6

  MacKenzie, Donald, 101

  macroeconomics, 36, 62–6, 76, 80, 134–5, 145, 147, 150, 244, 280

  Magie, Elizabeth, 149, 153

  Malala effect, 124

  malaria, 5

  Malawi, 118, 202, 204

  Malaysia, 168

  Mali, Taylor, 243

  Malthus, Thomas, 252

  Mamsera Rural Cooperative, 190

  Manhattan, New York, 9, 41

  Mani, Muthukumara, 206

  Manitoba, 282

  Mankiw, Gregory, 2, 34

  Mannheim, Karl, 22

  Maoris, 54

  market, 81–2

  and business, 88

  circular flow, 64

  and commons, 83, 93, 181, 200–201

  efficiency of, 28, 62, 68, 87, 148, 181

  and equilibrium theory, 131–5, 137, 143–7, 155, 156

  free market, 33, 37, 67–70, 90, 208

  and households, 63, 69, 78, 79

  and maxi-max rule, 161

  and pricing, 117–23, 131, 160

  and rational economic man, 96, 100–101, 103, 104

  and reciprocity, 105, 106

  reflexivity of, 144–7

  and society, 69–70

  and state, 84–6, 200, 281

  Marshall, Alfred, 17, 98, 133, 165, 253, 282

  Marx, Karl, 88, 142, 165, 272

  Massachusetts Institute of Technology (MIT), 17–20, 152–5

  massive open online courses (MOOCs), 290

  Matthew Effect, 151

  Max-Neef, Manfred, 42

  maxi-max rule, 161

  maximum wage, 177

  Maya civilisation, 48, 154

  Mazzucato, Mariana, 85, 195, 238

  McAfee, Andrew, 194, 258

  McDonough, William, 217

  Meadows, Donella, 40, 141, 159, 271, 292

  Medusa, 244, 257, 266

  Merkel, Angela, 41

  Messerli, Elspeth, 187

  Metaphors We Live By (Lakoff & Johnson), 38

  Mexico, 121–2, 217

  Michaels, Flora S., 6

  micro-businesses, 9, 173, 178

  microeconomics, 132–4

  microgrids, 187–8

  Micronesia, 153

  Microsoft, 231

  middle class, 6, 46, 58

  middle-income countries, 90, 164, 168, 173, 180, 226, 254

  migration, 82, 89–90, 166, 195, 199, 236, 266, 286

  Milanovic, Branko, 171

  Mill, John Stuart, 33–4, 73, 97, 250, 251, 283, 284, 288

  Millo, Yuval, 101

  minimum wage, 82, 88, 176

  Minsky, Hyman, 87, 146

  Mises, Ludwig von, 66

  mission zero, 217

  mobile banking, 199–200

  mobile phones, 222

  Model T revolution, 277–8

  Moldova, 199

  Mombasa, Kenya, 185–6

  Mona Lisa (da Vinci), 94

  money creation, 87, 164, 177, 182–8, 205

  MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262

  Monoculture (Michaels), 6

  Monopoly, 149

  Mont Pelerin Society, 67, 93

  Moral Consequences of Economic Growth, The (Friedman), 258

  moral vacancy, 41

  Morgan, Mary, 99

  Morogoro, Tanzania, 121

  Moyo, Dambisa, 258

  Muirhead, Sam, 230, 231

  MultiCapital Scorecard, 241

  Murphy, David, 264

  Murphy, Richard, 185

  musical tastes, 110

  Myriad Genetics, 196

  N

  national basic income, 177

  Native Americans, 115, 116, 282

  natural capital, 7, 116, 269

  Natural Economic Order, The (Gessel), 274

  Nedbank, 216

  negative externalities, 213

  negative interest rates, 275–6

  neoclassical economics, 134, 135

  neoliberalism, 7, 62–3, 67–70, 81, 83, 84, 88,
93, 143, 170, 176

  Nepal, 181, 199

  Nestlé, 217

  Netherlands, 211, 235, 224, 226, 238, 277

  networks, 110–11, 117, 118, 123, 124–6, 174–6

  neuroscience, 12–13

  New Deal, 37

  New Economics Foundation, 278, 283

  New Year’s Day, 124

  New York, United States, 9, 41, 55

  Newlight Technologies, 224, 226, 293

  Newton, Isaac, 13, 15–17, 32–3, 95, 97, 129, 131, 135–7, 142, 145, 162

  Nicaragua, 196

  Nigeria, 164

  nitrogen, 49, 52, 212–13, 216, 218, 221, 226, 298

  ‘no pain, no gain’, 163, 167, 173, 204, 209

  Nobel Prize, 6–7, 43, 83, 101, 167

  Norway, 281

  nudging, 112, 113, 114, 123–6

  O

  Obama, Barack, 41, 92

  Oberlin, Ohio, 239, 240–41

  Occupy movement, 40, 91

  ocean acidification, 45, 46, 52, 155, 242, 298

  Ohio, United States, 190, 239

  Okun, Arthur, 37

  onwards and upwards, 53

  Open Building Institute, 196

  Open Source Circular Economy (OSCE), 229–32

  open systems, 74

  open-source design, 158, 196–8, 265

  open-source licensing, 204

  Organisation for Economic Co-operation and Development (OECD), 38, 210, 255–6, 258

  Origin of Species, The (Darwin), 14

  Ormerod, Paul, 110, 111

  Orr, David, 239

  Ostrom, Elinor, 83, 84, 158, 160, 181–2

  Ostry, Jonathan, 173

  OSVehicle, 231

  overseas development assistance (ODA), 198–200

  ownership of wealth, 177–82

  Oxfam, 9, 44

  Oxford University, 1, 36

  ozone layer, 9, 50, 115

  P

  Pachamama, 54, 55

  Pakistan, 124

  Pareto, Vilfredo, 165–6, 175

  Paris, France, 290

  Park 20|20, Netherlands, 224, 226

  Parker Brothers, 149

  Patagonia, 56

  patents, 195–6, 197, 204

  patient capital, 235

  Paypal, 192

  Pearce, Joshua, 197, 203–4

  peer-to-peer networks, 187, 192, 198, 203, 292

  People’s QE, 184–5

  Perseus, 244

  Persia, 13

  Peru, 2, 105–6

  Phillips, Adam, 283

  Phillips, William ‘Bill’, 64–6, 75, 142, 262

  phosphorus, 49, 52, 212–13, 218, 298

  Physiocrats, 73

  Pickett, Kate, 171

  pictures, 12–25

  Piketty, Thomas, 169

  Playfair, William, 16

  Poincaré, Henri, 109, 127–8

  Polanyi, Karl, 82, 272

  political economy, 33–4, 42

  political funding, 91–2, 171–2

  political voice, 43, 45, 51–2, 77, 117

  pollution, 29, 45, 52, 85, 143, 155, 206–17, 226, 238, 242, 254, 298

  population, 5, 46, 57, 155, 199, 250, 252, 254

  Portugal, 211

  post-growth society, 250

  poverty, 5, 9, 37, 41, 50, 88, 118, 148, 151

  emotional, 283

  and inequality, 164–5, 168–9, 178

 

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