Explainer

Economics

Culture

16 January 2024

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

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.

Review

Awe and wonder

Books

Culture

Poetry

10 October 2024

6 min read

Charles Taylor on how poetry seeks cosmic connections

The philosopher yields an array of luminous insights.

Paul Weston

Paul Weston is a Fellow at Ridley Hall, Cambridge.

At dusk, three people sit on a field edge and look at the stars emerging.

Rad Pozniakov on Unsplash.

Charles Taylor, Cosmic Connections: Poetry in the Age of Disenchantment

At just shy of 600 pages, philosopher Charles Taylor’s latest book is not for the faint-hearted. At the heart of the book are fascinating questions. What kind of language should we use when we encounter ‘beauty’, or experience ‘wonder’ which seems to take us into a new kind of space, or make time stand still? It could be the sight of a breathtaking landscape. It could be a piece of music. It’s that sense of ‘connection’ with something bigger than ourselves. What might it mean? More particularly, how do we express what we intuitively feel to be real and deeply significant about such things when our usual language fails to capture it?

Taylor says that his latest book ‘is about (what I see as) the human need for cosmic connection . . . one shot through with joy, significance, inspiration’. And his hypothesis is that ‘the desire for this connection is a human constant, felt by (at least some) people in all ages and phases of human history’, even if ‘the forms this desire takes have been very different in the succeeding phases and stages of this history’. The book explores these questions by focusing on late-Romantic European poetry and traces its development through the work of later poets including Goethe, Rilke, Wordsworth, Hopkins, and T. S. Eliot.

The background to Taylor’s explorations is the ongoing impact of the Enlightenment on our language and understanding about ‘truth’ and ‘meaning’. Those familiar with his 2007 book A Secular Age will find echoes of it here, particularly the way in which post-Enlightenment language tended to develop the language of control. This, he argues, became increasingly dominant in Western modernity ‘because it is linked to a practical stance which is basically instrumentalist; we seek out the efficient causal relations in our world with the aim of discovering handles which will enable us to realise our purposes’. In reaction to this narrowing of possibilities, the Romantic poets focused on ‘the experience of connection, and the empowerment this brings: not a power over things, but one of self-realization’. And a key element of the Romantic movement was the recognition that a poem (alongside the wider arts) uncovers deeper meanings: it ‘reveals to us, brings us into contact with, a deep reality which would otherwise remain beyond our ken’.

‘Poetry goes beyond creating a mood, an atmosphere of feeling, and claims to give access to the inner force in a thing, not by describing it, but by making it palpable’

Charles Taylor

The book focuses on the variety of forms that this reaction took amongst Romantic poets. A unifying desire for ‘connection’ led to differing ideas about how poetic language makes this possible and what kinds of meaning are revealed. But the central belief remained constant: that poetic language was the key to addressing a prevailing cultural atmosphere of ‘disenchantment’, in which the desire for cosmic connection had been sidelined.

On the English side of the channel, Taylor finds in Keats’ poetry, a new form of expression summed up in his statement ‘Beauty is Truth and Truth Beauty’. In Taylor’s words, ‘Art raises the object to a new unity and intensity, which constitutes Beauty. But this is not something which just exists in the mind of the artist (or reader); it has reality, and hence Truth, even though this reality is partly brought to fruition by artistic (re)creation’.

Similarly, for Gerard Manley Hopkins, the form of poetic language itself can become a means of ‘connection’. As Taylor puts it, in Hopkins’ work, ‘Poetry goes beyond creating a mood, an atmosphere of feeling, and claims to give access to the inner force in a thing, not by describing it, but by making it palpable’. His poetry embodies this in that it ‘renders the rhythms of the being itself through the “sprung rhythm” of the verse’.

The second half of the book looks to poets of the last 200 years who have navigated parallel pathways towards this ideal of experienced fullness – in the face of increasing industrialisation and disenchantment. Baudelaire longs for the experience of fullness, but finds it barred by a state of melancholy that he described as ‘Spleen’. It is a melancholy brought about by the endless repetitions of mundane and urbanised life. Baudelaire’s attempt to find release from our imprisonment in trapped time is to face Spleen head on and to transform it through poetic contemplation.

T. S. Eliot’s poetry similarly aims to evoke the sources of a fuller life in a culture of decay by means of the ‘continual surrender’ of the poet to something more significant and valuable. In Eliot’s case this resolves in a more-or-less traditional sense of Christian order, but Taylor notes that his poetry doesn’t necessarily require this. Miłosz on the other hand, amidst the social and political upheavals in Poland, sought a higher form of poetry: a poetry that could rise above the discord of social turmoil in order to define a moment and clarify the path that needed to be taken.

‘The work of art opens for us a new field of meaning, by giving shape to it’.

Charles Taylor

At times, the weight and detail of Taylor’s exposition threatens to overwhelm the reader, but he offers an array of luminous insights along the way, and he is largely successful in keeping an eye on the broader questions and themes. Perhaps the most important here is his belief that the human desire for ‘cosmic connection’, with its yearning for joy, significance and inspiration is perennial. The book is in this sense an elaborate historical worked example of this desire, understood – perhaps imperceptibly – as a sense of ‘loss’ or ‘longing’. It is this ‘central aspiration of the Romantic period’, he concludes, that ‘remains powerful today’.

My own experiences of talking with people today seems to amply confirm Taylor’s view. And the search for language to describe the desire for this sense of connection (or the longing for it) continues to thrive even within a so-called secularised culture (most likely because of it). It too seeks language for expression and sometimes struggles for some of the same reasons that the Romantics identified. Taylor’s phrase ‘the immanent frame’ (from his A Secular Age) powerfully evokes a sense of being held on a restricted rein, unable to name or explore the realms of ‘beauty’ or the ‘transcendent’ beyond perceived cultural boundaries. Connected to this is the still commonly held belief that any supposed knowledge derived through the arts doesn’t put us in touch with anything other than ourselves.

Taylor convincingly transcends the supposed dichotomy between these so-called ‘subjective’ or on the other hand, ‘ontological’ possibilities. ‘The work of art’, he says, ‘opens for us a new field of meaning, by giving shape to it’. Moreover, it can ‘realize a powerful experience of fulfillment . . . of connection which empowers’. And Taylor backs his theory with autobiography. In Goethe’s ‘Wanderer Nachtlied’, he says, ‘There is a kind of rest/peace which I long for. I don’t fully understand it, but now I have some sense of it’. Or broadening the artistic field, he finds that listening to Chopin’s Fantasie-Impromptu in C sharp minor ‘opens me up to an unnameable longing’, or that when he listens to Mozart’s Jupiter Symphony, he feels ‘a striving upwards, an expression of praise and thanks, straining to reach some higher addressee (for me, this would be God), but I can imagine that someone else, feeling the ascending movement, would imagine another destination’).

Here then is a book that shines a light on the possibilities of ‘cosmic connection’. Taylor affirms our desires, reassuring us that we should not feel strange to share the same longings for ‘fullness’, for ‘transcendence’, for ‘joy’ and for ‘connection’ as did the Romantic poets. Our recognition of these desires may well have been evoked by the kind of poetry or music that Taylor talks about here. But for all of us, it is good to be reminded that in a western world still heavily influenced by the climate of secularisation many today are still searching for the sense of cosmic connection that Taylor describes.

Charles Taylor’s Cosmic Connections: Poetry in the Age of Disenchantment is published by Harvard University Press.