Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist

Imagine a world where the measure of success is not how much we produce, but whether everyone has enough to live a dignified life within the limits of our planet. This is the core idea behind the Doughnut model, a radical rethinking of economics for our time. For over seventy years, the dominant economic goal has been GDP growth – a relentless pursuit of more goods and services produced year after year. Yet this single metric, while useful for tracking economic output, has blinded us to the realities of inequality, environmental degradation, and human well-being.

GDP does not count unpaid work such as caregiving, which sustains families and communities. It ignores the depletion of natural resources and the pollution we create. It says nothing about how wealth is distributed or whether people have access to clean water, education, or political voice. In fact, GDP can rise even while millions suffer from hunger and ecosystems collapse.

Scientists have identified nine planetary boundaries – thresholds in Earth’s systems like climate stability, biodiversity, and nitrogen cycles – which if crossed, threaten the stability of the environment that supports all life. Our economy operates within this living planet, yet traditional economics has treated the environment as an infinite resource.

The Doughnut model visualizes a safe and just space for humanity: the inner ring sets out the social foundation – the essentials no one should fall below, such as food, water, health, and equity. The outer ring marks the ecological ceiling – the limits we must not exceed to maintain Earth’s stability. The space between is the Doughnut itself, where human prosperity and ecological sustainability meet.

Consider this: while billions have gained access to clean water and education over the last decades, billions still live in deprivation, and simultaneously, we have transgressed critical planetary boundaries. For example, carbon dioxide levels have risen beyond safe limits, threatening catastrophic climate change. Synthetic fertilizers are overused, polluting waterways and causing dead zones in oceans. Forest cover is shrinking, and biodiversity loss is accelerating.

What if instead of chasing endless growth, we aimed to bring everyone into the Doughnut’s safe and just space? What if progress meant thriving in balance, not moving endlessly forward and upward? This shift calls for new metaphors and new metrics – ones that capture the quality of life and the health of our planet.

As we embark on this journey, we must understand that the economy is not an isolated machine but part of a living system that includes society and nature. This realization leads us to the next insight: seeing the economy embedded within the broader web of life and human relationships.