Explainer
Economics
Culture
6 min read

How to pick an economic approach that really adds up

Assessing doughnut economics, Paul Williams asks what’s the economy for and who does it really serve?

Paul Williams, the CEO of Bible Society, worked for over a decade in business in London and then as an academic theologian in Canada.

a round table with empty chairs is seen from above. An orange is the only item on it.
Meina Yin on Unsplash.

“Anyone can see that our economic system is broken.”

This is the conclusion of Kate Raworth, author of Doughnut Economics, and her assessment has garnered positive endorsements from figures as diverse as George Monbiot, Andrew Marr and Sir David Attenborough. 

Yet to judge by the discussion surrounding the Chancellor’s Autumn Statement, our political class is not included in this broad perspective that Raworth claims. In what is widely understood as the early skirmishes of an election campaign, anticipating the moment when the country’s voters have another opportunity to indicate the direction of travel they hope for, the focus is on who will be better or worse off by this or that tax cut or benefit change. If anything is broken it is not the economic system but something like ‘the government’s economic management’ (Labour) or ‘public sector productivity’ (Conservative).  

If you are worried, as Raworth is, by “relentless financial crises,” “extreme inequalities in wealth” and “remorseless pressure on the environment” then it seems that both the government and the opposition believe that the solution is more economic growth, albeit with some barely discernible differences in fiscal and regulatory policy. 

Our contemporary political discourse is dominated, regardless of party, by the mainstream economic paradigm in which the market generates economic growth and the state functions to keep things on track by taxing and redistributing some of the surplus to those who for whatever reason didn’t do as well as others in the process. It also provides some additional incentives to business and other organisations to act in the public interest, for instance by subsidising green energy or taxing fossil fuels. Both parties, it seems, support this approach. The difference between them concerns how best the state manages the economy to get the most out of it, how the resulting surplus is distributed, and what kind of further incentives are needed. 

Visualising doughnut economics

An economics diagram in the shape of a doughnut.
Source: Doughnut Economics Action Lab.

For Raworth, on the other hand, the first thing to ditch is the assumption that economic growth is the right goal to pursue. The ‘doughnut’ of doughnut economics is an alternative to GDP as a measure of progress. It name is derived from the visual depiction of the idea of an economy that operates in the space within two limits – ensuring the human rights of each person on the one hand, and staying within the means of the planet on the other. This concept refuses to conceptualise the economy as a closed system in distinction from the social and environmental systems on which it depends.  

Raworth also wants to shift the emphasis away from the individual rational chooser of economic theory toward a more social understanding of human flourishing. And in direct contrast to the mainstream paradigm sketched above, in which the market’s job is to deliver economic wealth and the state’s job is to worry about distribution and regulation, Raworth wants an economic system designed from the outset to ensure a more equal distribution and to actively regenerate the environment. 

The economic system itself is like an engine that can be put to whatever purpose you want. It generates wealth and wealth can be put to all kinds of uses, good or bad. 

How might we evaluate this? Nobody disagrees that financial crises, extreme inequality and environmental damage occur and are bad. A good number of mainstream economists find Raworth’s aims laudable and worth pursuing, because we do need a better measure of success and improved models of human behaviour and ways to incorporate and limit externalities like carbon emissions. Yet they also find her analysis of economics a caricature, as many of the developments in economics over the last few decades seem to be ignored. 

For her harshest critics, Raworth fails to give due credit to our current economic system for the incredible reduction in global poverty that it has already enabled, provides very little by way of actionable policy ideas, and is full of erudite but wishful thinking. 

Yet the popularity of Doughnut Economics reflects a deep sense amongst many of us (some mainstream economists included) that something is seriously wrong, alongside an instinctive identification with the kind of values and changes that Raworth seeks. 

 The vital question is: what is our economy for? If we can get a better sense of what purpose we want the economy to serve, it may prove easier to identify whether it is achieving that, or is in some sense ‘broken.’  

But to ask this question is immediately to step away from the mainstream paradigm that dominates our public discourse in framing the economy. For mainstream economics, questions of purpose are ethical questions and those questions are explicitly left to the actors within the economic system and the state acting on their behalf. The economic system itself is like an engine that can be put to whatever purpose you want. It generates wealth and wealth can be put to all kinds of uses, good or bad. 

These ancient texts suggest that our mainstream paradigm is seriously adrift if it imagines that our economic system is morally neutral.

For many people the idea that the economy itself can be separated from ethical questions will automatically raise an alarm. Certainly, for Christians it ought to. The Bible firmly resists the idea that wealth and its generation is morally neutral. Even the most superficial reading of the Scripture alerts to the inherently spiritual and moral quality of economic activity. Fruitful work is part of what it means to be made in the image of God in the garden of Eden. The product of work is offered to God in worship. The Law is full of commands to deal justly, use fair weights and measures, consider health and safety in the building of a house, and give yourself, your family and your animals a rest (to name but a few). Jesus tells us that you cannot serve both God and money. The pictures of the New Creation in both Old and New Testaments include economic imagery – The Old Testament book of Micah envisions an end to war with everyone living “under their own vine and fig tree” (a vision of peace and economic flourishing) and the New Testament book of Revelation depicts the product of human work being offered up in worship before the throne of God.  

Overall the Bible sees the economic, social and environmental dimensions of life as interwoven and interconnected. Take the Sabbath, for instance. It is not only workers who get (or are commanded to take) a Sabbath once a week. The command extends to the whole community - and even to animals. Every seven years, the Sabbath Year provides a rest for the land and for those struggling with debt – the land must be fallow and allowed to regenerate, and all outstanding debts cancelled. Sabbath and Jubilee are deeply intertwined (the Jubilee was effectively a sabbath of sabbaths, taking place after seven sabbath years) and the Jubilee was the theological paradigm chosen by Jesus to explain his own mission and ministry. Quoting the prophet Isaiah, he said:  

“The Spirit of the Lord is on me, because he has anointed me to proclaim good news to the poor. He has sent me to proclaim freedom for the captives, recovery of sight for the blind, to set the oppressed free, to proclaim the year of the Lord’s favour.” 

These ancient texts suggest that our mainstream paradigm is seriously adrift if it imagines that our economic system is morally neutral. And Raworth is closely aligned with the biblical vision insofar as she insists on the importance of an economy that exists not for its own sake, in some independent sphere, but explicitly to enable people, communities and creation to flourish together.  We need to ask what our economy is for. And this is as good an answer as you might find.  

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Community
Culture
Generosity
Psychology
7 min read

Is empathy really a weapon?

Musk and Fonda disagree on whether empathy is a bug or a feature.
A montage shows Elon Musk wielding a chain saw, Jane Fonda flexing her muscles and Hannah Arendt smoking.
Wordd Wrestling Empathy.

You may have heard that you can kill a person with kindness, but in recent weeks have you also heard that you can bring about your own death through empathy? In an interview recorded with podcaster Joe Rogan in February, Elon Musk added his voice to a cohort of American neo-capitalists when he claimed, “We've got civilizational suicidal empathy going on” and went on to describe empathy as having been “weaponized” by activist groups.  

“The fundamental weakness of western civilization is empathy, the empathy exploit… they’re exploiting a bug in western civilization, which is the empathy response.”  

In recent weeks empathy has become one of the hot topics of American politics, but this is not the first time that Musk has shared his thoughts about empathy, and it should be noted that on the whole he is not really against it. Musk identifies, rightly, that empathy is a fundamental component of what it means to be human, and in previous interviews has often spoken often about his vision to preserve “the light of human consciousness” – hence his ambition to set up a self-sustaining colony of humans on Mars.  

But he also believes that empathy is (to continue in Musk’s computer programming terminology) a vulnerability in the human code: a point of entry for viruses which have the capacity to manipulate human consciousness and take control of human behaviours. Empathy, Musk has begun to argue, makes us vulnerable to being infected:  

"The woke mind virus is fundamentally anti-science, anti-merit, and anti-human in general. Empathy is a good thing, but when it is weaponized to push irrational or extreme agendas, it can become a dangerous tool." 

Strangely, on certain fundamentals, I find it easy to agree with Musk and his contemporaries about empathy. For example, I agree that empathy is essential to being human. Although, far from empathy leading us to “civilisational suicide”, I would say it is empathy that saves humanity from this fate. If consciousness is (as Musk would define it) the brain’s capacity to process complex information and make a rational and informed choices, then empathy, understood as the ability to anticipate the experiences, feelings, and even reactions of others, is a crucial source of that information. Without empathy, we cannot make good decisions that benefit wider society and not just ourselves. Without it, humanity becomes a collection of mere sociopaths. 

Another point on which Musk and I agree is that empathy is a human weak point, one that can be easily exploited. Ever since the term “empathy” was coined in the early twentieth century, philosophers and psychologists have shown a sustained fascination with the way that empathy causes us to have concern for the experiences of others (affective empathy), to think about the needs of others (cognitive empathy), and even to feel the feelings of others (emotional contagion). Any or all of these responses can be used for good or for ill – so yes, I agree with Musk that empathy has the potential to be exploited.  

But it is on this very question of who is exploiting empathy and why, that I find myself much more ready to disagree with Musk. Whilst he argues that “the woke mind virus” is using empathy to push “irrational and extreme agendas”, his solution is to propose that empathy must be combined with “knowledge”. On the basis of knowledge, he believes, sober judgement can be used to resist the impulse of empathy and rationally govern our conscious decision making. Musk states: 

“Empathy is important. It’s important to view knowledge as sort of a semantic tree—make sure you understand the fundamental principles, the trunk and big branches, before you get into the leaves/details or there is nothing for them to hang on to." 

What I notice in this system is that Musk places knowledge before empathy, as if existing bits of information, “fundamental principles”, are the lenses through which one can interpret the experiences of another and then go on to make a conscious and rational judgement about what we perceive.  

There is a certain realism to this view, one that has not been ignored by philosophers. The phenomenologists of the early twentieth century, Husserl, Heidegger, Stein – those who first popularised the very idea of empathy – each described in their own way how all of us experience the world from the unique positionality of our own perspective. Our foreknowledge is very much like a set of lenses that strongly governs what we perceive and dictates what we can see about the world around us. The problem is: that feeling of foreknowledge can easily be manipulated. To put it another way – we ourselves don’t entirely decide what our own lenses are.  

To graft this on to Musk’s preferred semantic tree: empathy is a means by which the human brain can write brand new code. 

In The Origins of Totalitarianism, another great twentieth century thinker, Hannah Arendt, explored how totalitarian regimes seek to control not just the public lives but also the thought lives of individuals, flooding them with ideologies that manipulate precisely this: they tell people what to see. Ideologies are, in a sense, lenses – ones that make people blind to the unjust and violent actions of a regime:  

"The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated communist, but people for whom the distinction between fact and fiction, true and false, no longer exists." 

A big part of the manipulation of people’s sense of foreknowledge is the provision of simplistic explanations for complex issues. For example, providing a clearly identifiable scapegoat, a common enemy, as a receptacle of blame for complex social and economic problems. As we know all too painfully, in early twentieth century Europe, this scapegoat became the Jewish people. Arendt describes how, whilst latent antisemitism had long been a feature of European public life, the Nazi party harnessed this this low-level antipathy and weaponised it easily. People’s sense of foreknowledge about the “differentness” of this group of “outsiders” was all too manipulable, and it was further cultivated by the Nazis’ use of “disease”, “contagion” and “virus” metaphors when speaking about the Jews. This gave rise a belief that it was rational and sensible to keep one’s distance and have no form of dialogue with this ostracised group.  

But with such distance, how would a well-meaning German citizen ever identify that their sense of foreknowledge about what it meant to be Jewish had been manipulated? Arendt identified rightly that totalitarian systems seek to eliminate dialogue, because dialogue creates the possibility of empathy, the possibility of an exchange of perspectives that might lead to knowledge – or at least a more nuanced understanding of what is true about complex situations. 

When I look at Musk’s comments, I wonder if what I can see is a similar instinct for scapegoating, and for preventing dialogue with those who might provide the knowledge that comes from another person’s perspective. In his rhetoric, the “woke mind” has been declared a common enemy, a “dangerous virus” that can deceive us into becoming “anti-merit” and “anti-human.” In dialogue, those who claim to be suffering or speaking about the suffering of others might be enabled to deploy their weaponized empathy, trying to make us care about other, to the potential detriment of ourselves and even wider humanity’s best interests. Therefore, it is made to seem better to isolate oneself and make rational judgements on behalf of those in need, firmly based on one’s existing foreknowledge, rather than engage in dialogue that might expose us to the contagion of wokeness.  

Whilst this isolationist approach appears to wisely prioritise knowledge over empathy, it misses the crucial detail that empathy itself is a form of knowledge. The experience of empathising through paying attention to and dialoguing with the “other” is what expands our human consciousness and complexifies our human decision making by giving us access to new information. To graft this on to Musk’s preferred semantic tree: empathy is a means by which the human brain can write brand new code.  

In these divisive and divided times, there are, fortunately, those who are still bold enough to make the rallying cry back to empathy. At her recent acceptance speech for a Lifetime Achievement Award, actor and committed Christian Jane Fonda spoke warmly and compellingly in favour of empathy:  

“A whole lot of people are going to be really hurt by what is happening, what is coming our way. And even if they are of a different political persuasion, we need to call upon our empathy, and not judge, but listen from our hearts, and welcome them into our tent, because we are going to need a big tent to resist successfully what's coming at us.”  

Fonda’s use of the tent metaphor, I’m sure, was quite deliberate. One of the most famous bible passages about the birth of Jesus describes how he “became flesh and dwelt among us.” The word “dwelt” can also be translated “tabernacled” or, even more literally, “occupied a tent” among us. The idea is that God did not sit back, judging from afar, despite having all the knowledge in the world at his disposal. Instead, God came to humanity through the birth of Jesus, and dwelt alongside us, in all our messy human complexity.  

Did Jesus then kill us with his kindness? No. But you might very well argue that his empathy led to his death. Perhaps this was Musk’s “suicidal empathy.” But in that case Musk and I have found another point about empathy on which we can agree – one that is summed up in the words of Jesus himself: “Greater love has no one than this: to lay down one’s life for one’s friends.”   

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