Doughnut Economics – GDP isn’t the futureMay 04 2020 | Dave Fardoe
The endless pursuit of Growth and the ubiquitous GDP or Gross Domestic Product measurement needs to be a thing of the past – let me explain why
The Earth is not limitless yet we chase this idea of endless growth, continual growth, business growth, a growing economy – where is it supposed to end? The simple answer is it isn’t and that is madness. How can we continue to grow endlessly when such growth demnds the consumption of resources that are finiate and continuing population growth is way beyond replacement levels. The pressure on Energy supply, materials, clean water and physical space will just go on. The model is wrong.
We clearly understand the history of our economic models and their emergence post WW2 – that is not to say the ideas were mailcious or had ill intent, far from it, however they were, and are flawed. The idea that the Earth is inexhaustible is perhaps the most fundamental error of all, yet, the disregarding of the houeholds and the tragedy of the commons were not strokes of genuius either. As we emerge into the 21st Century we need new economic theory, new models and calculations to go with them. Kate Raworth and her work on Doughnut economics is an excellent place to begin. (check out the resources and links section for more).
The Doughnut economic model describes a “Just and Safe Space” for humanity to live within, this idea is at the heart of Kangaia and encapsulates much of the economic theory we need to develop as we go forward. The model of course has its limitations and assumptions too, yet the concept adopts a more benevolent and “Correct” starting point than Paul Samuelson in his 1948 economic model. As such it gives us the emerging tools we need to begin to apply reform and pressure on our various leaderships to evolve in the way we want, rather than the way they suggest “we have to..”.