You say, “Donuts.” I say, “How high.” So, Doughnut Economics should be my favorite kind of economics. It eschews the want to grow for the sustainability of harmonistic balance. My words, not theirs.
Back in 2020, Amsterdam started applying Donut Theory to help 160,000 people who couldn’t afford stuff — like food — after they paid rent. The problem, according to Doughnut Theorists was too much carbon dioxide. No. Nope. Not making this up.
This week, I encountered Andrew Fanning. He holds a PhD in ecological economics and leads data analysis for the Doughnut Economics Action Lab. No. Nope. Still, not making this up. He found data that the average billionaire was worth $1.9B in 2000. That same average billionaire has $5.1B today. “That,” he said, shows that the rich are, “fleecing us, undermining democracy, and burning the world.” Dems fighting words.
Of course, at the start of 2020, the Dow was at 10,729. Today it’s at 42,063. If rich folks had money owned stock — which, who are we kidding, they do — they’d have 4x more money today than in 2000. That they have “only” 3x more means they’re accumulating wealth more slowly than others.
A different person pointed out to Dr. Fanning that someone with $547 million in 2000 would be a billionaire today. Because… in-flay-shun. The good doctor parried by arguing that, “$547 million is not exactly an inclusive starting point.” Clearly, he missed the math lesson that inflation math applies equally to any amount of money. We all have a little more money. We’re not wealthier.
If we’re not careful this fringe lunacy could become mainstream thinking in a few years. That’s a Laffer, right? I need a donut. At this point, even a plain cake one will do.