The Shape of a Better Life: How Doughnut Economics Reimagines Wellbeing

It is normal to be curious as to what Doughnut Economics is, and what it has to do with the mental health of people, both individually and collectively. Absolutely everything. Interest in this topic came about picking up an old, shrivelled up copy of Wellbeing Magazine at a random cafe. That article would have certainly been written prior to the pandemic, where a prolonged period of inflation and the rising cost of living followed suit.

According to the Organisation for Economic Co-Operation and Development (OCED), right now about 1 in 5 people are living with a mental health condition, and this source also states than nearly 50% of people will experience mental illness in their lifetime. I do not know about you, yet these statistics are overwhelming. This goes to prove that mental illness is a systemic issue, where the Doughnut Economics model points to a systemic solution to the mental health crisis simultaneously.

If you have ever studied economics at college/university (even at introductory level); you would have been exposed to Keynesian, Marxism and Ricardo economic schools of thought to name. The difference between Capitalism and Communism would have also been explained, where economics is the study of scarce resources. With the current conflict in the Strait of Hormuz (as at the time of writing); necessary resources such as fuel are significantly scarce.

Economist Kate Raworth is taking a different approach, where the mental health and wellbeing of humanity is taken into consideration. Welcome to Doughnut Economics. Inspiration from Bhutan's measure of gross happiness, as opposed to Gross Domestic Product (GDP) could be prevalent. There is nothing wrong with measures such as GDP; yet with the latter model - corporations seem to be rewarded for polluting the planet, all at the expense of eco and climate anxiety. No economic system is ever perfect; however the idea of Doughnut Economics is utterly refreshing, where human wellbeing and productivity can work in sync with one another - even without the need for a Universal Basic Income (UBI); as the latter can be either capitalistic, or more so communistic, depending on your point of view. On GDP, the Organisation for Economic Co-Operation and Development (OCED) also reports that mental illness costs world economies over 4.2% of GDP due to lost productivity, welfare/income support payments, and health insurance payouts for such. It seems that not only are the current economic systems harmful; they seem to come across as being counterproductive and economically inefficient.

Doughnut Economics wants you to picture that particular sweet and sugary treat that would send insulin levels spiking. That's right, an actual doughnut. With Doughnut Economics, the inner ring is all about laying the social foundations for humanity, which implies the minimum that we need in terms of financial resources or otherwise in order to live well. This will take into consideration housing (making sure that people have a safe roof over their head), as well as access to healthcare without breaking the bank. The inner ring also takes education, community, income and human equality into account. No K-shaped economy here. (In other words, no more divisive energies, where some people are prospering/well off, while others have to rely on scraps to get by.)

The outer ring of the doughnut in Doughnut Economics is all about what our planet is able to tolerate. In other words, ecology. Climate change, pollution, biodiversity loss, and resource depletion is taken care of, in order to reduce or ideally eliminate eco and climate anxiety in people with the environment being considered, unlike the current GDP calculations for a country.

As you may have gathered, the goal of this particular economic model for human wellbeing is to ensure that everyone's needs are met without destroying our environment and ecosystems in the process. The latter is what capitalism is particularly stellar at unfortunately. (The dough of the doughnut itself is humanity's safe haven, in a way.)

"The power is within you. It has always been." - Louise Hay

Why does the Doughnut Economics model and system matter when it comes to the mental health and individual psyches of every single human being alive?

That is an awesome question. Firstly, the model is not only economic, it is deeply psychological. The traditional economic systems are clearly failing humanity, with what appears to be no end in sight for relentless inflation and the rising cost of living worldwide. Even if economics is not your strong suit; humans are waking up to the fact that traditional economic systems rewards constant productivity and growth which comes at a high cost of humans burning out, causing illness and/or injury in many. More and more people know that burnout leads to stress, anxiety, fatigue/tiredness and overwhelm. The Doughnut Economics school of thought purports being enough over endless striving and achievement, where a solid and sustainable work-life balance is preferred over hustle culture. Therefore the nervous system can relax more without being on guard in flight or flight mode all of the time due to moving KPI scorecards and pressure at work, all for the sake of making money that gets eaten away by inflation and the rising cost of living. No wonder why health is actually wealth, despite cash continuing to be king. Money comes and goes, yet this body that we have; it is our temple, as it is the only body that us humans have.

When humans are having trouble regulating their emotions, it is due to the body being stuck in constant stress and survival mode when money is tight, and people are living paycheque to paycheque. That is not a fun, creative and empowering way to live. The brain is stuck in survival mode, and is unable to be creative. It is great to be strong and resilient, yet being on all of the time is super exhausting, and no wonder why depression and anxiety is happening to people in spades. Doughnut Economics is a fan of housing stability, income equality, as well as more seamless access to healthcare when needed. When people are not struggling with their basic needs, more space is available for anxiety and depression to heal, where people can start to create meaningful, smart goals again with their emotions becoming more and more regulated as a result. People will want to give back to others who are a little less fortunate than them. The community vibe will be revived.

According to Cornell University, renters in housing distress show significant declines in their mental health when combined with financial hardship in particular. Furthermore, Doughnut Economics is proving that secure housing is a positive mental health intervention. Cornell University also state in their research that people on average experience 5.4 stressors per day due to work and health challenges such as illness and injury, combined with recovering from such.

Due to the restrictions brought on by an unexpected pandemic in 2020; the sense of community was challenged and quickly lost. Doughnut Economics also sheds light on the fact that modern economies (and the prolonged cost of living crisis) isloates people more and more. There is nothing wrong with the gig economy, yet the relentless drive needed for survival in such an economy is not fully supported by the Doughnut Economics model. Digital overload and urban disconnection (the idea of 15-minute cities is super sad) is not sustainable in the longer-term; and the creator of the Doughnut Economics model agrees with that ideology. Co-operative systems and social equity will lead to stronger relationships, which will lower or eliminate depression and increase quality of life satisfaction. Us humans need each other, and more than ever right now.

The outer ring of Doughnut Economics is designed to reduce eco and climate anxiety that will enhance the happiness of humans, and will help us feel more and more social and connected to one another again.

Your self worth, self esteem and self confidence should not be tied to your ability to obtain a secure, well paying job quickly; where the latter in the current system is feeling "Bigger than Ben-Hur" right now. Your levels of income and/or productivity should not be tied to your levels of self esteem. The Doughnut Economics model and system takes a strong stand from the idea of "producing at all costs" to humans having meaningful work again, as well as a stronger sense of purpose (critical for people's psyches and mental health); and not feeling like a cog in the wheel when it comes to working.

According to The Guardian, even in "rich" countries like the UK, around 1 in 10 adults face combined housing, financial and health insecurities as at the time of writing; and further reports that these people are twice as likely to experience stress, insomnia (the latter of which people also end up in psychiatric wards for), and isolation.

The Doughnut Economics model will be an economic model and system where we live as we normally do (for example, tax returns still need to be filed annually, and competition will still be a thing, whether in sports, business, and when it comes to applying for a job); however humans are not left out at the expense of profits and money for shareholders and company directors, and as a whole our quality of life is designed to increase significantly. And furthermore, productivity/productive output will not cause burnout, illness, stress, and injury - where both our bodies and the environment will no longer be pushed to breaking point.

Could the Doughnut Economics model seriously be the solution out of the economic stresses that Governments and humanity are currently under?

The Doughnut Economics Action Lab (DEAL) is a real life organisation helping Governments re-design their policies where prosperity and the needs of humans and their mental health can work hand in hand. More information on their work can be found by clicking here. If a particular Swedish town can implement Doughnut Economics, then why not any other country? Why not New York and Sydney? A further explanation of the Doughnut Economics model, including a graphic illustration can actually be found on WikiPedia proves that this model is practical, feasible, and way beyond theory. Once again, Mental Health Matters.

In concluding, this song captures the essence of the importance of community spirit, and what the Doughnut Economics model and solution proposes in being a positive mental health recovery intervention, in conjunction with recovering the human spirit and psyche. Touch by Noiseworks - reach out and touch somebody: