1.3 Society and the economy

Our economies are embedded in society. Human relationships shape economic systems, and economic systems impact the way we relate to one another and the rest of the living world.

We cannot understand the economy without understanding our complex human nature, values and needs as well as the systems and institutions we have created to organise ourselves to care for ourselves and others. This subtopic introduces you to some key understandings about the relationship between society and the economy.

At the end of this Subtopic 1.3 Society and the economy, you should be able to:

• discuss the significance of worldviews on human nature for economies

• discuss the role of values in economic activity and policy-making

• describe a personal vision of ‘the good life’

• identify basic human biological and social needs and distinguish them from need satisfiers

• discuss factors affecting what, how and for whom we produce need satisfiers

• discuss the significance of understanding human needs for living in balance with the rest of the living world

• explain the Doughnut Economics model and describe the current global situation with regard to the Doughnut’s social foundation and ecological ceiling

• describe provisioning systems in terms of their biophysical inputs, physical and social elements and social outputs

• explain the roles of physical and social factors in affecting how well provisioning systems work

• explain the role and interconnections of households, markets, commons and the state in provisioning systems

• discuss the role and importance of care in economies and the consequences of undervaluing care

• distinguish between direct and indirect care, paid and unpaid care

• explain factors affecting the extent and quality of care work in economies, including demographic change, culture, incomes, markets, globalisation (global care chain), and environmental, social and economic shocks