What’s an Open Economic System?

What’s an Open Economic System?

Is the economy an open or a closed system? Why does traditional economics treat the economy as a closed system? According to Kate Raworth, traditional economics has a closed-system model for the economy, which operates simply as a series of “inflows” and “outflows” of money, closed off from everything else. This model puts the economy in isolation and treats it as a machine, governed by a simple and predictable set of inputs and outputs. In an open economic system, on the other hand, the economy is embedded within the environment and the planet itself. Here’s why the economy is an

The Assumption of Rational Behavior in Economics

The Assumption of Rational Behavior in Economics

What is rational behavior in economics? How accurate is this assumption that humans are inherently rational agents seeking to maximize their economic utility at the expense of everything else? In economics, human beings are seen as largely rational agents. The rational economic man cares only about increasing his material wealth and will always follow incentives to do so. According to Kate Raworth, this portrait of humankind is grossly inaccurate. In her book Doughnut Economics, she calls into question the power of extrinsic incentives in driving human behavior. Here’s why the assumption of rational behavior is ultimately flawed.

Kate Raworth: The Doughnut Model Explained

Kate Raworth: The Doughnut Model Explained

What is the doughnut model in economics? How has economic growth pushed us outside the doughnut? According to Kate Raworth, the author of Doughnut Economics, the goal of economic policy should be to stay within the inner ring of the metaphorical doughnut. This entails designing an economy that is productive enough to ensure that everyone on the planet has their basic material needs met, but that does not grow so fast as to deplete our natural resources and degrade the environment. Here’s what we can do to stay within the doughnut, according to Raworth.

Income Inequality: The 4 Potential Solutions

How to End Poverty Around the World

Can income inequality be solved? What can be done to bridge the global divide between the rich and the poor? Income inequality is a global problem—it plagues all countries to some extent. A small minority of the world’s population has amassed vast fortunes, while billions of people remain mired in extreme poverty. But hope remains. In her book Doughnut Economics, Kate Raworth proposes four income inequality solutions that can reduce the gap between the rich and the poor. Let’s take a look at Raworth’s solutions for income inequality.

Cultural Leadership Lessons From Toussaint Louverture

Cultural Leadership Lessons From Toussaint Louverture

Are you trying to change the culture of your organization? What can you learn from Haitian revolutionary Toussaint Louverture about this kind of leadership? Toussaint Louverture led the military and diplomatic campaign that liberated enslaved people in Haiti and set the stage for its independence from France. In What You Do Is Who You Are, Ben Horowitz draws cultural leadership insights from Louverture. Read on to learn more about Louverture and his leadership.

Why a Regenerative Economy Is the Future

Why a Regenerative Economy Is the Future

Is economic progress destroying the planet? How does the focus on economic growth deplete the planet’s resources? Most economies are inherently extractive and wasteful. If we continue at this rate, it’s only a matter of time until we reach a point of no return. To prevent this from happening, we need a top-to-bottom redesign of our global economic order: away from an extractive economy and toward a regenerative economy. Here’s why an economic revolution is in order, according to Kate Raworth.

How Social Media Filters Create Toxic Beauty Standards

How Social Media Filters Create Toxic Beauty Standards

Do you use social media filters? Did you know that these filters can actually do more harm than good?  Almost every social media platform has a filter, whether it be Instagram, Snapchat, or TikTok. While they can be fun, they can also promote an unhealthy and narrowing idea of what beauty should look like.  To understand the controversy behind filters on social media, we’ll look at the history of selfie culture and how the Kardashians have made filters acceptable on social media. Then we’ll delve into the damaging effects of these unattainable beauty standards.

Organizational Decision-Making: 3 Ways to Set the Tone

Organizational Decision-Making: 3 Ways to Set the Tone

When it comes to decision-making in your organization, how much power do you and your employees have? How fast are decisions made? What happens immediately after a decision is made? In his book What You Do Is Who You Are, Ben Horowitz discusses how decision-making is an aspect of your organization’s culture. As the leader, you set the tone for how decisions are made. Horowitz identifies three choices you make that determine what kind of decision-making culture you build. Keep reading for details on these three choices.