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.  

Article
Books
Culture
Original sin
Trust
6 min read

When the penny drops, on the Salt Path or a London street

Being taken in unleashes dark, unpalatable emotions

Susan is a writer specialising in visual arts and contributes to Art Quarterly, The Tablet, Church Times and Discover Britain.

A painting show Adam and Eve wide-eyed after the fall.
Paradise Lost, Emil Nolde, 1921.
Nolde Foundation Seebüll.

Doubts about the honesty of The Salt Path, Raynor Winn’s memoir of walking the Southwest coastal path with her ill husband Moth, have raged in the past weeks. Investigations revealing the duo’s real names, financial history and the medical unlikelihood of the reversals in Moth’s degenerative condition, as presented in the book, provoked thousands of readers to express anger and disappointment at being duped. But being taken in and learning from it is part of being human: a lesson in how to trust more wisely, rather than not trusting at all 

Last summer I was scam mugged on my local high street. Passing a frail pensioner pulling loose notes from his pocket, I picked up his fallen tenners and returned them. Six steps later, a woman shrieking I’d thieved her “granddad’s” money grabbed my arm. Cue a few minutes of struggling and shouting, before I got away, bruised and humiliated, but still gripping my bag. Vowed afterwards to always walk on by if I saw someone needing help on London’s streets, as it could be a set up. 
But this detachment didn’t last. Being a goodish Samaritan is hardwired, even on the capital’s occasionally mean streets. We want to support and connect with our brothers and sisters. Withdrawal from our fellow citizens makes us more unsafe, not less. As Kaya Comer-Schwartz, London’s Deputy Mayor for Policing and Crime, said: “The safety of our town centres is more than just policing – it's about building stronger, more connected communities where everyone feels secure.” 

Certainly, a police officer would have been a welcome sight while tussling with my would-be conwoman. But I was grateful to the handful of people who stopped, as they would be my witnesses if the assailant went full mugger, in frustration that the ploy for me to open my bag had gone awry.  

Memoirs also entreat us to bear witness, explaining the betrayal felt by some of the Salt Path’s two million readers who invested emotion and empathy in its uplifting tale of a hard -done -by couple finding solace in nature. Identifying with the memoir’s midlife, everyman duo and believing a long trek through the Southwest is a silver bullet for homelessness, financial woes and degenerative medical conditions, does not make the Salt Path’s former fans saps, it makes them beautifully human.  

Raynor and Moth’s unmasking as Sally and, still remarkably healthy, Tim Walker, who lost their Welsh farmhouse following accusations of embezzlement against Sally and owned a property in France when claiming to be homeless, has lifted the lid on the publishing industry’s hunger for real life stories, with morally simple, feelgood narrative arcs. Bonus points if the tale includes a “nature cure”, where nature is not just a balm for grief and pain, but somehow vanquishes it altogether. Fact checking takes a lower priority than shaping a story into a series of emotional hot button scenes, with a neat, satisfying ending. And publishers may be guilty of their own sleight-of-hand by incentivising booksellers to personally recommend to customers a list of predetermined titles, creating the aura of ‘word of mouth’ hits. 

Mean Girls’ great line “Jealous much?” captures journalists’ enthusiasm, mine included, for the Salt Path scandal. How can bestseller success pass over writers with have spent decades crafting phrases like popular orange vegetable to avoid writing carrot twice, yet shine on Raynor/ Sally’s repetitive, clunky prose? ”We lost. Lost the case. Lost the house.” Her dizzying ascent from unknown debut non-fiction author, with only a piece in the Big Issue to her name, to a book deal with Penguin, seems to other writers a mystery as great as anything in her trekking tale. 

Feeling deceived unleashes these dark, unpalatable emotions such as envy and desire for revenge. I long nourished fantasies of catching the scammers in action and deflecting their next victim by shouting “Look! Granddad’s dropping his money again,” before handily nearby forces of law and order brought them to book. Even if you lose little materially from a con, the loss of dignity and sense of agency from becoming a mark, a manipulated, dehumanised bit player in another’s exploitive narrative, takes time to get over.  

Popular accounts of online romance fraud feel designed to give audiences a sense of superiority, ‘I’d see that coming a mile off’, over the victims, reinforcing their sense of shame. Yet evidently with many thousands being lured by romance fraud, the perpetrators use effective psychological coercion techniques. Omniscient superiority needs to be replaced with empathy and support for fleeced, broken-hearted victims. 

Grifters are part of life, but their reductive, empathy-free, world view does not have to be. As singer Nick Cave’s counsels, cynicism is not the answer: "Cynicism is not a neutral position — and although it asks almost nothing of us, it is highly infectious and unbelievably destructive. In my view, it is the most common and easy of evils.”  

Religious origin stories, including the Garden of Eden, contain an element of falling for a trick. Eve does the serpent’s bidding, and she and Adam are banished from paradise. “So he drove out the man; and he placed at the east of the garden of Eden Cherubims, and a flaming sword which turned every way, to keep the way of the tree of life.” Emil Nolde’s painting Paradise Lost, 1921, catches perfectly the moment the penny drops with Adam and Eve on the consequences of falling for the serpent. Yet by the following chapter of Genesis they start a family, moving on with life with new insight. 

To never confront disappointment would be to remain as an infant, without the opportunities to grow and develop as adults. 

In the Good Samaritan, one of the best-known parables, Jesus transforms the categorising question ‘who is my neighbour?’ into the universal quest of ‘how can I be a better neighbour’? Our bonds with our communities, a sense of shared humanity are the best, possibly the only defence, against those who would mislead us or do us harm. 

Celebrated American journalist Ira Glass said: “Great stories happen to those who can tell them.” Published in 2018, The Salt Path’s direct, film-like scenes of survival against the odds and against the elements, would have resonated with all the people who saw their security and lifestyle nosedive after the 2008 financial crash, never to recover. Suspending disbelief, Raynor and Moth’s 620-mile wild camping trek, represented a symbolic railing against a heartless economic system. 

My experience of the penny dropping a fraction too late to escape the scammers, has made me revise my self image as a streetwise Londoner. On my way to pick up holiday money that afternoon, my head was full of travel plans rather than focused on the here and now, a tendency I must curb.  

If my assailant was writing her memoir I like to think our scrap would be the opening chapter, where she is at a crossroads of having to mug somebody in broad daylight, with a small, attentive audience, or rethink her street hustling career. Dressed in a fake leather biker jacket on a hot summer day - the smell lingers in my olfactory memory - her outfit was possibly an homage to Catherine Zeta Jones’ catsuit in Entrapment. As we know from all the TV series on con artists, looking the part is key. 

 Finding out the reality of her life since I broke free of her grip 11 months ago would not be hard, as she is now stationed outside Premier Foods by the tube station, in much scruffier clothes, asking for a pound for water. This sideways, or probably downwards move, in the street economy appears to be working out for her, and the peace of the neighbourhood. 

Despite having lived in small rural communities for decades, throughout all The Salt Path controversy, nobody has come forward to say the Winns / Walkers were good neighbours. Setting this right could be their next adventure and next bestseller. 

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