The Care Economy: an alternative in a resource-constrained world Tim Jackson’s lecture at Corvinus

These were among the questions explored by Tim Jackson, one of the leading thinkers in ecological economics, in an open lecture at Corvinus based on his latest book, The Care Economy. He examined why shifting to a care-centred economic model could be worthwhile, and what is at stake if we fail to do so.  

Jackson visited Hungary as a guest of the CIAS Centre for Ecological Economics Research and spoke at Corvinus on 27 April. Known for pushing the boundaries of economic thinking, he opened with a deceptively simple but fundamental question: what does prosperity mean on a finite planet? The conventional answer links prosperity to economic growth, arguing that rising incomes bring greater security, more choice, and a higher quality of life. Yet this view overlooks the fact that economic activity operates within physical limits, and that its effects eventually feed back into society and the environment. 

According to Jackson, the root of the problem lies in equating prosperity almost entirely with wealth. Instead, he suggests understanding it through the lens of health. This is not just a normative claim; it is supported by empirical evidence. Income increases improve life expectancy only up to a certain point. Beyond roughly 20,000 dollars per person per month, the relationship weakens. Further increases in wealth no longer translate proportionally into longer healthy lives, and in some developed countries life expectancy has even declined despite continued economic expansion. 

Balance, not accumulation 

This understanding of health differs fundamentally from the logic of economic growth. Wealth accumulation can be described as a linear process, whereas health is a dynamic equilibrium that requires constant adjustment. The concept of homeostasis illustrates how the body continuously regulates its internal state in response to external pressures. When this system is persistently strained, for instance by unhealthy lifestyles, the balance shifts and chronic conditions may emerge.  

This idea is closely linked to the psychological concept of “flow”, which describes the state of optimal human experience. Research shows that activities that bring genuine satisfaction, such as creative work, physical movement, social interaction, or even meditation, tend to have a low environmental impact. In large-scale studies, participants rated their flow experiences on a scale from 1 to 5, and the results clearly indicated that the highest levels of subjective wellbeing are not associated with the highest levels of material consumption. 

Materialism, paradoxically, tends to undermine this optimal experience. The pursuit of comfort leads to the avoidance of challenge, which weakens self-regulation and erodes the conditions necessary for flow. An economy built on consumption therefore creates a contradiction not only environmentally but also psychologically. 

The care economy 

“If we accept that prosperity is better understood in terms of health rather than wealth, then it follows that the primary goal of the economy should not be continuous growth but care,” Jackson argued. Drawing on the work of Joan Tronto and Berenice Fischer, he described care as all the activities we undertake to maintain, preserve, and repair our world so that we can live in it as well as possible.  

Care, in this sense, is not a separate sector but a general organising principle. It includes healthcare, education, and food systems, but also extends to all social practices that contribute to quality of life. 

Such activities have distinct economic characteristics: they typically involve relatively low environmental impact, provide high levels of employment, and directly improve wellbeing. This makes them especially relevant for an economic transition that prioritises sustainability and social wellbeing over growth. 

The trap of a non-caring economy 

Despite this, Jackson argues that today’s system resembles a “non-caring” economy. A clear example is the relationship between the food and pharmaceutical industries. The market for ultra-processed foods is growing by 6–8 per cent annually, even though these products contribute to chronic illness. The pharmaceutical sector then offers treatments for these conditions, and it too is expanding rapidly.  

While this system generates short-term economic growth, it carries significant long-term costs. Using the United Kingdom as an example, Jackson showed that the hidden costs of unhealthy diets, reflected in healthcare spending, amount to more than two and a half times total food expenditure. By contrast, achieving a healthy diet would require only a little more than one and a half times current spending, while avoiding many of these healthcare costs. 

On a planet with finite resources, continuous economic expansion inevitably leads to conflict. As competition for resources intensifies, we move towards a point where economic logic and social stability can no longer be reconciled. In this context, growth becomes less a source of security and more a driver of uncertainty. 

Towards a more sustainable future 

Jackson’s lecture highlighted that care is not merely a moral concept but a fundamental organising principle of life. Health as dynamic balance, flow as optimal experience, and social wellbeing all follow the same underlying logic. 

If this logic were applied to the economy, it would point towards a system that prioritises maintaining balance rather than pursuing unlimited growth. In such an economy, care is not treated as a cost but as an investment, and this shift may be one of the most important steps towards a more sustainable future.