Explainer

Economics

Culture

16 January 2024

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

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.

Article

Attention

Culture

Weirdness

Wildness

26 November 2024

6 min read

Take a walk: the world is weirder than you think it is

Psychogeography and the dark alleyways of the mind.

From Mockingbird

Mockingbird connects the Christian faith with the realities of everyday life.

A backlit person at twilight holds a hand out towards the camera, holding some fairly lights

Riccardo Annandale on Unsplash.

This article, by Blake Collier, first appeared in Mockingbird. Published by kind permission.

Entre chien et loup.

The phrase literally means “between dog and wolf” and has most immanently been used to describe the twilight hour where day and night intermingle before night fully takes hold.

Jean Pruvost, a linguist who has studied the expression, gave some background on ‘entre chien et loup.’ He says it comes from a Latin phrase, intra hora vespertina inter canem et lupum, that dates back to at least the seventh century. And it refers to the time when the daylight dims and you could mistake a dog for a wolf.

One could imagine before the advent of electricity and modern public lighting how ambiguous this time of day could be as the landscapes around your small village were being consumed by the darkness — the human eye not fully able to calibrate fully for day or for night, hence the inability to distinguish between a friendly pet and a looming threat.

This is what is popularly known as liminal space in our current epoch. This liminality is always present, however, not just at dusk. As we move through the worlds we inhabit, whether natural or built, we are constantly finding ourselves within transition or transformation. Psychogeography is a broader term that is often used to investigate the liminal movement of bodies through space. In its most simplistic form, it is how our mind interacts with and processes the physical landscapes that we inhabit and how those landscapes affect our mind. The actual history of the term is much more complicated — honestly, convoluted — however at its core it is scratching at the nebulosity of things like entre chien et loup.

At the outskirts of a city or town, one begins to see the fraying of the edges, those areas where we have yet to fully enact our illusory control over the land.

About seven or eight years ago at the height of my running prowess, I got up one Friday morning very early and started a ten-mile run I had planned around nearly the full border of my hometown of Canyon, Texas. I did not know if I would make it the whole way, but the intent was there and the map was set. However, something interesting happened as I began plodding down my route. Those lines that show up on our maps often engender varying qualities of trails. Most of the time I was hitting asphalt and sidewalks, but when you are following a broad circle around a town, it’s not uncommon to find ambiguous stretches between incorporated and unincorporated parts of the town. Somewhere within the first mile or two, one of the “roads” I had included on my path ended up being nothing more than a worn trail through prairieland behind a group of houses.

I bring this story up because, though I did not know it then, I was enacting a psychogeographic practice. Iain Sinclair, who is probably one of the most well-known proponents of modern psychogeography, walked the M25 around London in seven different treks over a time period. The M25 is a 125-mile loop around London and is considered one of the busiest highways in the world. As he ambled along the highway — sometimes on asphalt, sometime “around” the trace of the highway — he would take note of what he saw, and he eventually wrote the book London Orbital. This practice allowed him to see London in a new way because at the outskirts of a city or town, one begins to see the fraying of the edges, those areas where we have yet to fully enact our illusory control over the land. They have neither been captured by urban sprawl nor have they been renovated and gentrified. These lacunae are ambiguous regions between the built and unbuilt (or decayed). Once again, we are placing ourselves intentionally into places where we attend to the ley lines which connect the physical markers to the perceived or imagined topographies of the places where we exist.

To put it bluntly, being intentionally attentive to surroundings can trigger investigations into the seen and unseen powers that hole up in our built environments and the natural world that pushes back against it.

The path through the prairieland I spoke of earlier ended at a concrete curb and a recently repaved residential street that ran right next to a Catholic church, almost like the church was posting itself on the fringes of the town to warn of impending threat, or perhaps giving a welcome sight to a weary traveler. I suppose it depends on how you look at it.

Yet it is exactly this work of attending to where we live and reacquainting ourselves with it that is, I believe, at the heart of this purposeful ambulation through space. Our lives fall into banality most of the time. We take everything for granted and we see our lived environment through that myopic lens. But take a walk on the outskirts of where you live, without a phone or music or any other technological mediation, and just look around the space and pay attention to how it embroils your emotions. I can nearly guarantee that you will find the place you live is much weirder than you thought it was, and you might even learn a thing or two about what your place values. I knew that Catholic church was in that general area of that path, but I didn’t realize how that path would empty me out before its hallowed presence.

However, as I thought about it, it made sense that in this community the Catholic church would be found on the edges of the town. There are somewhere around ten other churches in a town of about 17,000 all of which are Protestant. However, if you go just ten or eleven miles west to the town of Umbarger, the roles are reversed. There is still one Catholic church, but as far as I know no Protestant churches. Merlin Coverley, in his book tracing the history of psychogeography, finds that “contemporary psychogeography as closely resembles a form of local history as it does a geographical exploration.” One could take the observations from their ambulation and dig into their place’s past to see why this might be the case. However, this is very much the chien of this psychological study of environment.

What about the loup? Psychogeography has always had connections to the occult and the weird. Coverley continues later in his book,

“Here, then, we find all the features ascribed to psychogeography today: the mental traveler who remakes the city in accordance with his own imagination is allied to the urban wanderer who drifts through the city streets; the political radicalism that seeks to overthrow the established order of the day is tempered by the awareness of the city as eternal and unchanging; and the use of occult symbolism reflects the precedence given to the subjective and the anti-rational over more systematic modes of thought.”

All of this is to say that what we might find out about the place we live in when we give ourselves to its fringes and walk its shores might have a darker tone which implicates local politics and powers. Perhaps we will even find ourselves confronted by a metamorphosis which changes the very way we live, work, and move in these places.

Sinclair’s earlier work Lud Heat in 1975 set out to remap London by way of connecting London’s churches built by eighteenth-century architect Nicholas Hawksmoor and their odd loci to numerous prominent murders like the Radcliffe Highway Murders and those by Jack the Ripper. There is a thread that ties some of the imagery Hawksmoor used in his churches to ancient Pagan symbolism. To put it bluntly, being intentionally attentive to surroundings can trigger investigations into the seen and unseen powers that hole up in our built environments and the natural world that pushes back against it.

If nothing else, this study of the ambiguous transgressions between mind and place helps us bring a new profundity to our existence. It psychologically brings us back to a place where our intellectual, physical, and technological prowess cannot protect us from the hairs that stand on the back of our necks. Because everything, if attended to perceptively, can be seen as a dog or a wolf. And that should give us great pause in the everyday grind of our lives.