Doughnut Economics

Doughnut Economics is a term that economist Kate Raworth coined on how to look at our economy. She wrote a book explaining the concept. Our current economy looks at Gross Domestic Product (GDP), imports, exports, and stock prices. We only look at sales and producing more and more. The more we sell and produce, the better. Our current view does not consider the fact that we are extracting our natural resources and damaging our planet. We will deplete our resources in the future if we continue on this track. 

Kate provides a way to look at our economy within the planet’s boundaries. The “doughnut” is from the shape of a diagram that she designed, which shows a circle with the outer boundaries of our planet’s resources. If we don’t learn to live within the earth’s ecological carrying capacity, then we will cause climate change, pollution, and biodiversity loss. The doughnut itself is where we want to live, where we have clean water, food, energy, housing, etc. in balance with nature. It is important that we change the way we view our economy because this drives our culture and activities. We need to recognize our ecological limits in order to have a sustaining society long term.