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.

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19 June 2024

5 min read

The decade that defined sport

What the sports stars of today owe to the eighties.

Simon Burton-Jones

Simon is Bishop of Tonbridge in the Diocese of Rochester. He writes regularly round social, cultural and political issues.

Maradona runs in celebration, holding a hand aloft as an England player sits dejected on the ground.

Maradona celebrates, 1986 World Cup.

Dani Yako via Wikimedia Commons

If the 1980s were your formative years as a sports fan, you will carry many images with you even today. Dennis Taylor potting the last black after midnight to beat Steve Davis. Barry McGuigan defeating Eusebio Pedrosa in the ring at Loftus Road. The races between Coe and Ovett at the Moscow Olympics. The tie break between Borg and McEnroe. Botham’s Ashes. Diego Maradona versus England at the Mexico World Cup.

You will undoubtedly have other memories, though these will have been controlled by a limited number of broadcast editors. I clearly recall watching Viv Richards’ astonishing century in one cricket World Cup final against hosts England being regularly interrupted on BBC1’s Grandstand with coverage of a routine horse race meeting. The introduction of the less fusty World of Sport on ITV was a route in for some sports that faced an implicit class bias, but it was all still far removed from the 24/7 reverencing of sport today.

The eighties was an era of transition as sport began to gain a place in our cultural consciousness. It was also a decade in which the relationship between sport and politics became cemented on paths we still walk. In Everybody Wants To Rule The World, academic and journalist Roger Domeneghetti has written an entertaining and informative book subtitled ‘Britain, Sport and the 1980s’.

In our branding of the twenties as the decade of polarisation, we forget how deeply divided Britain was in the eighties. Recent commentary on the fortieth anniversary of the miners’ strike has been a reminder of this and how violent public life proved. Football hooliganism was pervasive and after a riot at a Luton Town – Millwall game in 1985, Margaret Thatcher asked of football officials: ‘what are you going to do about it?’. In a pithy and telling response, the FA secretary Ted Croker said: ‘Not our hooligans, Prime Minister, but yours. The product of your society’. Perhaps more than any other exchange, it symbolised the braiding of sport and politics, threads that endure to this day.

The sports stars of today have become surrogate saints, held up as an inspiration for what can be achieved and frequently employed as motivational speakers.

The argument that sport and politics don’t mix has a familiar ring for people who live with the tired old trope that religion and politics don’t either, as if our experience of culture and values are sealed off from each other. Sporting boycotts in the 1980s - from Olympics to apartheid South Africa – placed athletes in the unavoidable position of having to make decisions about participation that would reflect on their values and could affect their careers; positioning that other people were spared. These were an early taste of the moral standing afforded to sportsmen and women today; a status that somehow asks more of them, perhaps because other professions have become so tarnished and mistrusted.

Domeneghetti’s book is also a sobering reminder of how ugly and careless much of our shared life was in the eighties. The Bradford City fire and Hillsborough disaster were awful losses that showed the low priority of health and safety and the culture of institutional cover up that continues to blight the nation. The author locates these failings in the wider context of disasters like Kings Cross, Piper Alpha and the Marchioness boat as part of his bid to write a social history of sport.

Yet in a sense, Domeneghetti chose arbitrary parameters. Football in particular was on the cusp of a revolution with the introduction of the Premier League in 1992. Cultural sympathy for the game was about to change with the writings of Nick Hornby in Fever Pitch and Pete Davies in All Played Out. The nasty face of football was to be transformed into a highly marketable model.

The ugliness of the era is laid bare in the prolific and casual racism, sexism and homophobia that coursed through every sport. The Windrush’s second generation broke through in the 1980s, notably in football, but was met with staggering levels of prejudice. Anyone tempted to think this has now been eradicated hasn’t spent any real time at a football ground or on social media. Women’s sport had virtually no profile in the eighties outside of tennis and athletics and as recently as 1978, Lord Denning had ruled that an eleven-year-old girl should not be allowed to play competitive football against boys the same age even though she merited a place in her team. Meanwhile, stars like Justin Fashanu, Martina Navratilova and John Curry were targeted for their sexual orientation. It remains hard for present day athletes to identify as gay, despite the rhetoric of acceptance. Sport then, as now, held up an unerring mirror to our faces.

The sports stars of today have become surrogate saints, held up as an inspiration for what can be achieved and frequently employed as motivational speakers. But there is the gloss of a hyper-individualistic, neo-liberal culture. Sports stars succeed because of a combination of innate gifting (which cannot simply be replicated) and material advantage (too many Olympic medals are still awarded to wealthy and advantaged Britons). I won because I wanted it more is a dishonest assessment of sporting success in the UK and in this way also holds up a mirror to other walks of life.

The powerful personal branding of today’s athletes in many ways have their origin in the 1980s and the way the likes of Ian Botham, Carl Lewis and John McEnroe transcended their sports. The cult of the conquering superstar is a smart diversion from the reality that money usually wins. Just look at the Premier League table.