As the global conversation around climate change and resource depletion intensifies, recent news articles increasingly highlight the urgent need for systemic economic change. Traditional models of endless expansion are facing unprecedented scrutiny. Addressing these critical challenges, Tim Jackson, one of the foremost thinkers in ecological economics, recently delivered a compelling open lecture at Corvinus University of Budapest. Presented by the CIAS Centre for Ecological Economics Research, his talk explored a fundamental question: What does it actually mean to live well on a planet with finite resources?
Jackson’s presentation, based on his latest book, The Care Economy, argued that genuinely fulfilling human activities are not inherently destructive to the environment. Instead, he proposed a paradigm shift that redefines prosperity, urging economists, students, and policymakers in Hungary and beyond to reconsider the foundational metrics of success. Schedule a free consultation to learn more about our ecological economics programs.
Redefining Prosperity in a Resource-Constrained World
For decades, the dominant economic narrative has tightly linked prosperity to economic growth. The conventional assumption asserts that rising incomes inevitably bring greater security, expanded consumer choice, and an elevated quality of life. However, Jackson opened his lecture by dismantling this assumption, pointing out a critical blind spot in traditional economic theory: economic activity does not exist in a vacuum. It operates within strict physical limits, and its negative externalities eventually cascade back into society and the natural environment.
The core issue, according to Jackson, lies in equating prosperity almost entirely with wealth accumulation. He suggested that a more accurate and sustainable measure of prosperity should be understood through the lens of human health. This is not merely a philosophical stance; it is firmly grounded in empirical evidence. Data consistently demonstrates that income increases correlate with improved life expectancy only up to a specific threshold. Once basic material needs are securely met, the relationship between wealth and longevity weakens significantly. In some highly developed nations, life expectancy has even stagnated or declined despite continued economic expansion, proving that GDP growth alone cannot guarantee societal wellbeing.
The Science of Health Versus the Logic of Accumulation
To understand why the traditional growth model falls short, Jackson contrasted the mechanics of wealth accumulation with the biological realities of health. Wealth accumulation is frequently treated as a linear, infinite process—more money always equating to a better outcome. Health, by contrast, is a dynamic equilibrium that requires continuous, careful adjustment to maintain balance.
Homeostasis as an Economic Model
Jackson drew on the biological concept of homeostasis to illustrate his point. The human body continuously regulates its internal state in response to external pressures and stressors. When this regulatory system is persistently strained—whether through environmental toxins, chronic stress, or unhealthy lifestyles—the balance shifts. Over time, this sustained strain leads to systemic breakdowns and the emergence of chronic conditions. Applying this logic to the macroeconomic level suggests that an economy relentlessly pursuing expansion, regardless of ecological or social strain, is fundamentally destabilizing itself.
The Psychological Cost of Materialism
This biological perspective aligns closely with the psychological concept of “flow,” which describes a state of optimal human experience characterized by deep engagement and satisfaction. Extensive research indicates that activities most likely to induce flow—such as creative work, physical movement, meaningful social interaction, and mindful practices—typically have a remarkably low environmental impact.
In large-scale studies where participants rated their flow experiences, results clearly demonstrated that peak subjective wellbeing is not associated with peak material consumption. Paradoxically, the relentless pursuit of material comfort often undermines the conditions necessary for flow. The constant drive for convenience leads to the avoidance of challenge, which in turn weakens human self-regulation. An economy built primarily on driving consumption therefore creates a dual contradiction: it destroys the ecological systems it relies upon while simultaneously eroding the psychological wellbeing of the populations it serves.
What Constitutes the Care Economy?
If prosperity is better understood in terms of health rather than wealth, Jackson argued, then the primary goal of the economy must shift from continuous growth to care. Drawing on the foundational work of Joan Tronto and Berenice Fisher, Jackson defined care as encompassing all the activities we undertake to maintain, preserve, and repair our world so that we can live in it as well as possible.
Crucially, care in this context is not relegated to a single, marginalized sector of the economy. It functions as a general organizing principle. While it explicitly includes healthcare, education, and sustainable food systems, it also extends to all social practices, community initiatives, and interpersonal relationships that directly contribute to quality of life. Submit your application today to join the next generation of sustainability leaders.
Activities rooted in the care economy share distinct economic characteristics that make them highly relevant for the 21st century:
- Low Environmental Impact: Caring activities generally rely on human attention and time rather than the aggressive extraction and consumption of finite raw materials.
- High Employment Potential: Transitioning to a care-centric model inherently requires a larger, more dedicated workforce, directly addressing employment challenges.
- Direct Wellbeing Improvement: Unlike the production of disposable consumer goods, the outputs of care work—healthier populations, educated citizens, and cohesive communities—directly enhance human flourishing.
The Hidden Costs of a Non-Caring Economic System
Despite the clear benefits of a care-oriented approach, Jackson asserts that our current global system more closely resembles a “non-caring” economy, where the creation of problems is economically rewarded through the provision of lucrative solutions.
The Ultra-Processed Food and Pharmaceutical Paradox
Jackson provided a stark illustration of this dysfunction by examining the relationship between the modern food industry and the pharmaceutical sector. The market for ultra-processed foods continues to grow rapidly—expanding by 6 to 8 percent annually—even though these products are scientifically linked to rising rates of chronic, diet-related illnesses. Consequently, the pharmaceutical sector expands rapidly to provide treatments for the very conditions generated by poor diets.
While this cyclical system generates impressive short-term economic growth and corporate profits, it carries devastating long-term systemic costs. Using the United Kingdom as a detailed case study, Jackson highlighted that the hidden costs of unhealthy diets—manifested primarily in skyrocketing healthcare spending—amount to more than two and a half times the total national expenditure on food. By stark contrast, shifting the population to a genuinely healthy, sustainable diet would require only a marginal increase in food spending (roughly one and a half times current levels), while simultaneously avoiding a massive portion of the associated healthcare costs. Share your experiences in the comments below regarding the shift toward sustainable economic models.
Resource Constraints and the Drive Toward Conflict
The implications of these systemic inefficiencies become even more severe when viewed through the lens of global resource constraints. On a planet with finite ecological boundaries, continuous economic expansion inevitably leads to intensifying competition for scarce resources. As nations and corporations vie for diminishing supplies of water, minerals, and energy, the global system moves toward a critical threshold where traditional economic logic and social stability can no longer be reconciled.
In this context, Jackson warned that economic growth ceases to be a reliable source of security. Instead, it becomes a primary driver of geopolitical uncertainty, inequality, and conflict. The pursuit of endless accumulation actively undermines the stable, healthy environments required for human societies to thrive.
Applying Ecological Economics in Hungary and Beyond
Jackson’s lecture at Corvinus University of Budapest served as a critical intellectual checkpoint for the field of ecological economics. Hosted by the CIAS Centre for Ecological Economics Research, the event highlighted the vital role that academic institutions in Hungary and Central Europe play in developing alternative economic frameworks. As the European Union navigates complex transitions related to the Green Deal and sustainable development, the theories discussed at Corvinus provide a rigorous foundation for future policy design.
For students and professionals engaging with these topics, the message is clear: the future of economics lies not in refining methods of endless extraction, but in mastering the science of balance. Implementing a care economy requires restructuring incentives, revaluing essential labor, and building infrastructures that prioritize human and ecological health over sheer output. Explore our related articles for further reading on sustainability and economic policy.
Conclusion
Tim Jackson’s analysis demonstrates that care is far more than a moral virtue or a niche social issue; it is a fundamental organizing principle of life itself. Health as dynamic balance, flow as optimal experience, and social wellbeing all operate according to the same underlying logic of maintenance and repair. Applying this logic to our economic structures points toward a system that prioritizes maintaining equilibrium rather than pursuing unlimited expansion.
In a reformed economic model, care is not treated as a burdensome cost to be minimized, but as the most critical investment a society can make. Shifting toward a care economy represents one of the most pragmatic, evidence-based steps available for building a genuinely sustainable future. As the limits of the traditional growth model become impossible to ignore, the insights shared at Corvinus University offer a necessary roadmap for navigating the complex challenges of the 21st century. Have questions? Write to us!
