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.

Explainer

Art

Culture

Identity

2 August 2024

5 min read

Controversial art: can the critic love their neighbour?

What to do when confronted with contentious culture.

Jonathan Evens

Jonathan is Team Rector for Wickford and Runwell. He is co-author of The Secret Chord, and writes on the arts.

Two people run though a darkened art gallery towards a body lying amongst photography paraphanalia

Audrey Tautou and Tom Hanks, The Da Vinci Code.

Sony Pictures.

In the wake of the controversy over the Olympic opening ceremony, based as it was on a fundamental misunderstanding on the part of Christians as to what was being portrayed, you may be perplexed or confused by the different ways Christians respond to controversial art or media portrayals that are perceived to be an attack on core Christian beliefs. If that is you, here are some thoughts as to why it is that Christians react in a range of different ways.

Our responses are always underpinned by depth of relationship with and commitment to Jesus, the one who has turned our lives upside down and filled us with his Spirit. Our sense of what it is that Jesus has done for us and what it is that relationship with Jesus means to us is the determinative factor affecting our response when we perceive the One we love and who loves us to have been maligned or mocked.

For some, we feel a need to stand with or defend Jesus whenever we perceive that he is under attack, and we have seen that instinctive response apparent in reactions to the Olympic opening ceremony. However, instinctive emotive responses run the risk of pre-empting more reasoned or reflective responses. That has certainly been the case here, as what many Christians perceived to have been a parody of the Last Supper was not actually that at all. Instead, the sequence was a portrayal of the feast of Dionysius, so had nothing to do with the Last Supper at all.

Christians, as here, are often too quick to make allegations of blasphemy without actually understanding what is being portrayed. I have, unfortunately, seen many similar examples within my lifetime. In the 1970’s and 80’s films like Monty Python’s Life of Brian and Martin Scorsese’s The Last Temptation of Christ resulted in thousands of Christians demonstrating outside cinemas, while Christian organisations, like the National Viewer’s and Listener’s Association headed by Mary Whitehouse, lobbied for those films to be banned.

God does not need human beings in order to be defended, particularly from perceived mockery.

However, interestingly, the release of The Da Vinci Code in 2006, although it dealt with similarly controversial material for Christians, did not result in mass protests. Instead, through seeker events, bible studies, websites and booklets, churches encouraged discussion of the issues raised by the film while clearly contesting the claims made about Christ and the Church.

The protests against such films often did not tally with the content of the films themselves and displayed a lack of understanding of them, their stories and meaning. As Richard Burridge, a former Dean of King’s College London, has said of Life of Brian, “those who called for the satire to be banned after its release in 1979 were ‘embarrassingly’ ill-informed and missed a major opportunity to promote the Christian message”. Life of Brian portrayed the followers of religions as unthinking and gullible and the response of Christians to that film reinforced that stereotype.

As a result, the Church had to learn again that the way to counter criticism is not to try to ban or censor it but to engage with it, understand it and accurately counter it. The Da Vinci Code events, bible studies, websites and the like that the Church used to counter the claims made in The Da Vinci Code featured reasoned arguments based on a real understanding of the issues raised, making use of genuine historical findings and opinion to counter those claims. These created a conversation with the wider community that was far more constructive than the kind of knee-jerk reactions we have seen to the opening ceremony of the Olympic Games.

Some of these knee-jerk reactions derive from a sense, in the West, that the dominant place Christianity used to have in society has been eroded leading some to think that our values and beliefs are under threat. This reveals an underlying insecurity which it is surprising to find in those who believe that God is all-powerful and in control of human history. God does not need human beings in order to be defended, particularly from perceived mockery.

Indeed, the reverse is the case, as, in Jesus, God deliberately entered human history to experience human life in all its facets, including real mockery and suffering, to show that such experiences are not defining and can be transcended through love and sacrifice. Such a God does not require those who follow to become defensive themselves when the path of mockery is actually the path to resurrection and renewal.

Cultural comment is as much about love for neighbour as any other aspect of Christian life.

So, what might a more constructive and productive response to controversies entail? Taking time to reflect and to understand what it is we are experiencing would be a much better place to start. The Olympic opening ceremony was a celebration of French culture, which highlighted images from the Louvre in particular. Leonardo da Vinci’s ‘Last Supper’ is in Italy and does not include a blue Dionysius. With some reflection and investigation, that would quickly have become apparent. Similarly, the scene to which Christians objected in The Last Temptation of Christ was just what it said on the tin, the last temptation Jesus faced. It was a temptation that he rejected, and the film was all the more powerful as a depiction of the incarnation as a result.

Then, we can see that what the Christ who embraced human life through the incarnation calls us to is a charitable hermeneutic (how we interpret), when it comes to receiving, understanding and commenting on the culture around us. Cultural comment is as much about love for neighbour as any other aspect of Christian life. Our charitable hermeneutic was summed up for us by St Paul when he wrote of going through life looking for “whatever is true, whatever is honourable, whatever is just, whatever is pure, whatever is pleasing, whatever is commendable”. Sister Wendy Beckett, the cultural commentator who most recently has best exemplified this charitable hermeneutic achieving huge popularity as a result, wrote of “a beautiful secret … that makes all things luminous … a precious gift in this confused and violent world”.

With the beautiful secret of a charitable hermeneutic, we might, perhaps, look again at the Olympic opening ceremony and appreciate the intent of Thomas Jolly, the artistic director behind the ceremony, when he said that religious subversion had never been his intention: “We wanted to talk about diversity. Diversity means being together. We wanted to include everyone, as simple as that.”