Frank Ramsey, Doughnut Economics and De-growth Theories: Towards a Pragmatic Solution to Social Inequality and the Climate Catastrophe

Abstract

There are striking parallels between the ground-breaking economic theories of Frank Ramsey and the current proposals of Kate Raworth in her theory of doughnut economics. Moreover, there are elements of both positions which align well with contemporary efforts to deal with the looming climate catastrophe through forms of de-growth strategies. Ramsey’s theories, introduced in the early 20th century, laid down foundational ideas for understanding how future consumption needs to be balanced against present needs.  His notion of optimal growth over time aligns well with Raworth’s insistence that economic factors need to be interpreted within a framework of social justice and the well-being of the planet. Both these theories – reinforced by current work on de-growth strategies – can provide a blueprint for social and economic theory and practice which aims at creating a safe and just space where humanity can thrive without undermining the planet’s health.

Key Words: Frank Ramsey, Doughnut Economics, Existential Risks, Inter-generational Ethics, DeGrowth Strategies