The most delicious side of Economics: Doughnuts
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By Arissa Hani Naimi
I think we’ve all been in a situation where we want more than what we could receive.
I mean, who wouldn’t want the latest phones, tablets, or even Birkin bags?
But on this little planet called Earth, in which we call our home, there’s a little something called scarcity. By definition, it refers to the demand for a good or service is greater than the availability of the good or service.
Now, I think it’s time to check the weather forecast, because all you Economic students are in for a crazy ride. As of right now, it’s cloudy with a chance of scarcity, and it’s all because of climate change.
From climate change to scarcity?
Climate change creates a tangled set of problems, especially related to scarcity. As temperatures rise, rainfall patterns change, causing water scarcity in many places with more frequent and severe droughts affect farming, water sources, and nature.
This lack of resources can spark conflicts over what is available, making global tensions worse.
Now, it’s natural to feel bummed out because of this. Fear not, I know exactly what would cheer you up. Something sweet, fluffy, crispy and delectable…. perhaps, doughnuts?
As delicious as it sounds, Doughnut Economics, created by Kate Raworth, is a way of looking at economics that focuses on meeting people’s basic needs while staying within the planet’s limits. Imagine a doughnut.
The inner part represents the essentials everyone should have, and the outer part sets the boundaries to avoid harming the environment.
It’s about building an economy that is fair and sustainable, ensuring everyone has what they need without damaging the Earth.
Doughnut Economics prioritizes environmental sustainability by urging for a balance between human needs and planetary boundaries.
It also emphasizes social justice, aiming to ensure that everyone has access to essential needs like food, water, and education, as well as provides a holistic view of economics, considering social, environmental, and economic factors, challenging the traditional growth-focused economic model.
However, just like how sugar isn’t necessarily good for you, there are also some drawbacks related to doughnut economics.
Transitioning into it may face resistance and challenges in implementing new policies and practices. Not to mention, balancing the needs of both people and the planet could lead to difficult trade-offs and decision-making.
While I still favor a classic strawberry sprinkled doughnut, this doughnut doesn’t necessarily prove to be so bad after all. What’s your favourite doughnut?