To its credit, the diagram was the first attempt to view the economy as a whole. Mainstream economics depicts the whole economy in a single image - the circular flow diagram. But between these two sets of boundaries lies a sweet spot - shaped unmistakably like a doughnut - that is both an ecologically safe and socially just space for humanity.' (pg 39) Beyond the ecological ceiling lies an overshoot of pressure on Earth’s life-giving systems such as climate change, ocean acidification and chemical pollution. “Below the doughnuts social foundations lie shortfalls in human well-being, faced by those who lack life’s essentials such as food, education and housing. The doughnut is way to transition from growth for the sake of growth to providing for every person’s needs while protecting the planet we call home. A more sustainable and encompassing guide to economic success starts by asking the question: what enables human beings to thrive? The answers are found within the doughnut. While there are many correlations between quality of life and economic growth - even Simon Kuznets himself, creator of the measure of national income warned “the welfare of a nation can scarcely be inferred from a measure of national income.” Growth has its limits, as a mantra for the distribution of resources and in terms of how long it can go on before we cross a threshold from which we cannot return. But our tunnel vision on GDP growth has caused us to lose sight of the economy’s true purpose and potential. Gross Domestic Product has been the primary metric of progress and success in our economy for the better part of 7 decades.

Economix book summary