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
Morality
5 min read

Never Let Me Go: 20 years on

Ishiguro’s brilliant novel is the perfect Frankenstein story for today.

Beatrice writes on literature, religion, the arts, and the family. Her published work can be found here

Four young people peer through a window.
Carey Mulligan and Keira Knightley in the 2010 film adaption.
Fox Searchlight Films.

This article contains spoilers. 

Human beings are creative. For good or for evil, making new things out of raw materials is something that we can’t help doing, whether that’s writing new books, creating new recipes, or building new houses. Why are we born this way? Christians would say it’s because of the imago Dei: because according to the book of Genesis, the first book in the Bible, we are made in the image of God. If God created the world and every one of us, and if we’re made in his image, then it follows that all of us have this creative impulse within us, too.  

But if creating is something natural to us, does it follow that it’s also core to our identity as human beings? In other words, is making something that we do, or something that we are? Are we different from all other living creatures in this world by being creators ourselves?  

Although he doesn’t call himself a Christian, these are precisely the kind of theological questions the novelist Kazuo Ishiguro asks time and time again in his books. And nowhere does he ask them more powerfully than in Never Let Me Go, which was published 20 years ago. 

Never Let Me Go starts off as the story of three children at a boarding school. Kathy, one of three friends, serves as our first-person narrator; it’s through her eyes that we slowly realise something sinister is taking place. As Kathy, Tommy, and Ruth grow into teenagers and then young adults, it’s finally revealed that they are clones, brought into being thanks to advancements in cloning technology in a dystopian post-World War II Britain. They are brought up for the sole purpose of being organ donors. Or, to put it more bluntly, they’ve been raised for slaughter.  

Kathy, Ruth, and Tommy have a happy childhood at their boarding school, Hailsham. Their future is hinted at by their teachers, but they’re largely shielded from the truth. All around the country, we later find out, clone children are being raised in horrific conditions. But Hailsham is different, because its Headteacher, Miss Emily, is part of a group that believes the clones deserve to be treated humanely – at least until someone needs a kidney transplant.  

But, though treated in a ‘humane’ way, society doesn’t see the Hailsham clones as ‘human’, and that’s precisely what Miss Emily is trying to prove: that they are not unlike real, normal people. So, she encourages the children to make art. ‘A lot of the time’, Kathy tells us, ‘how you were regarded at Hailsham, how much you were liked and respected, had to do with how good you were at “creating”’. The children don’t understand why they must always paint and draw, but they’re told that Madame Marie-Claude, a mysterious figure, will collect their best artworks for a seemingly important ‘gallery’.  

Years later, Tommy and Kathy have become a couple. Before dying – or ‘completing’, as they call it – after her second ‘donation’, Ruth tells them that she believes a deferral is possible for couples that are truly in love. Kathy and Tommy go to Miss Emily’s house, their former Headmistress, certain that, as children, they were encouraged to produce art precisely to be able to prove, one day, their true feelings.  

They are quickly disappointed. Miss Emily reveals that Hailsham has now closed down, but that while the school stood, it was meant as an experiment, aimed at convincing the public to improve living conditions for the clones: 

‘We took away your art because we thought it would reveal your souls. Or to put it more finely, we did it to prove you had souls at all…we demonstrated to the world that if students were reared in humane, cultivated environments, it was possible for them to grow to be as sensitive and intelligent as any human being.’ 

Equating creativity with human identity does make sense, to an extent at least. In The Mind of the Maker (1941), Christian novelist and critic Dorothy L. Sayers argued that the closest we can get to understanding God as our Creator is through engaging ourselves in creative acts: ‘the experience of the creative imagination in the common man or woman and in the artist is the only thing we have to go upon in entertaining and formulating the concept of creation’. In creative acts, from a Christian perspective, we partially grasp God’s creation of us.  

Ultimately, however, being creative in imitation of God, is not enough to get to the very core of what defines a human being. There are all kinds of factors, from old age to mental or physical disability, that make any form of traditionally creative act highly unlikely for some people. By that definition, someone in a coma or a newborn baby is not fully human. 

That’s exactly the definition of humanity that underpins the cruel society of Ishiguro’s Never Let Me Go. We need a better definition, and Christianity provides a unique tradition to help us on the way. A Christian concept of the human person is one that looks both at why we were made, and what we were made for. Christians believe that God made us out of love, and for the purpose of being in communion with him. He made each one of us as a special and irreplaceable individual, and for each of us our telos – the end or aim of our life – is to join him in heaven.  

If we embrace this definition of what it means to be human, then the extent to which we are able to express our intelligence or creativity while on earth doesn’t really matter anymore. If we believe that merely to exist is good – not to exist and fulfil our potential through this or that accomplishment, but just to exist – then we can’t deny that each member of the human family is, in fact, a ‘person’ in the fullest sense of the word.  

It is precisely this God-shaped hole that makes the concept of human dignity so fragile and slippery in Never Let Me Go. Ishiguro’s brilliant novel is, ultimately, the perfect Frankenstein story for the modern day. It warns us about the consequences of what might happen if we try to treat other human beings as things we have paid, but even more powerfully it shows us the danger of valuing human life for its creativity, instead of loving it as the creation of God. 

Celebrate our 2nd birthday!

Since March 2023, our readers have enjoyed over 1,000 articles. All for free. This is made possible through the generosity of our amazing community of supporters.
If you enjoy Seen & Unseen, would you consider making a gift towards our work?
Do so by joining Behind The Seen. Alongside other benefits, you’ll receive an extra fortnightly email from me sharing my reading and reflections on the ideas that are shaping our times.
Graham Tomlin
Editor-in-Chief