Why is Britain poor? With Rory Sutherland

For the Spectator Magazine, writer Rory Sutherland explains why in Britain a toxic mix of economics and law has led to a bureaucratic apocalypse. Rory says 'In electing this government, we seem to have picked the worst of both worlds: higher taxation combined with austerity in the public finances'. Kate Andrews speaks to Rory Sutherland about how this red-tape has led to poor politicians and policy-making, and what needs to be done to save the economy.

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[jdg]

Basically we combine the worst bits of left and right without the good bits (i.e. our right wing party fails to encourage business and investment and promote order and efficiency, while our left wing party fails to invest in useful state capacity and pull those at the bottom out of poverty)

[charliestevens]

“Our incapacity to build is just an embarrassment” - absolutely spot on. Imagine if the Victorians came back now and witnessed the state of UK infrastructure. They would laugh at us.

[jonathancollard]

Rory is one the most authentic, astute and adroit commentators on all things economic and social cohesion I’ve seen in a very long time. I love him 👏🏻👏🏻👏🏻

[SFRZRD]

I’m British living in Chile and whilst this country has its issues - I can’t put into words how much it’s changed my life living in a country where if someone or something needs to get something done - they by and large, get it done. I can’t remember the last time I filled out a form or had to be on hold during a telephone call.

[joerogers]

Didn't Nick Clegg block the development of a nuclear power station because it would be finished until the mid 2020s? If he hadn't been so short sighted it would be almost completed by now!

[p.w.j]

As an engineer working in the UK water sector this really resonates. Although much of the blame does lie with investor dividends and profits, the other side to the story is highly under reported in the press and thats very frustrating. The sector is very over regulated financially from central london by economists and lawrers. We often find ourselves having to undertake cost-benefit analysis exercises for fixing anything, even critical infrastructure and components! Utterly bonkers. Its really exacerbated the problem of lack of investment and high water bills.

[everyonecancraft]

The world has changed. My grandmother told me that when she got married in 1932 she gave up her job in a local shop because it would bring shame on my grandfather for not earning enough to support her. Today a woman taking a 2 year break from her career is seen as a problem.

Universal Credit rules force single mothers into looking for 30 hour a week work when their youngest child is two years old. A mother not working 30 hours a week is now considered lazy. 50 years ago the concern was latch key kids whose came home from school to an empty house.

The change in attitude is amazing.

[peterweston]

Rory makes sense. He understands complexity. His reference to magic is his man on the street way of talking complexity. As in Complex Systems. Economists, lawyers and Politicians think in reductionist terms. Worse still, consulting firms hate complexity as they can’t scales cookie cutter solutions and rip the taxpayer off. Worse, they attempt quash the idea of complexity.

[alexmelli]

I have lived in Japan for over 20 years. The GDP figures may not look so good, but they have nailed down what Rory refers to as ‘the experience’. The people would not accept anything less. And you can buy a house outside Tokyo/Osaka relatively easily. Focusing on economic metrics alone does not equate to a good quality of life. Entirely concur.

[namelessone]

I find these PPE 'degrees' hilarious. So, on average, you had one year of philosophy, politics, and economy each.
So you hardly know anything about three areas. Brilliant. Go run the country now.
Unbelievable.

[edbop]

Because we centered to much power in the city rather than investing in industries that add value. Also our Universities have become a joke.

[existentialvoid]

I enjoy Sutherland so much -clear, concise and brilliant.

[gingerkilkus]

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in Britain.

[lecaprice]

City of London financial elites have transferred a great deal of money from the economy to overseas trusts. This has created a number of problems for the domestic UK economy.

[VinceLammas]

Kate Andrews looked decidedly uncomfortable when Rory was describing how the UK has protected the position of pensioners to the point that working people are paying for things they are unable to ever benefit from. She was equally quiet when he argued for more flexible working.

Obviously, many people work in jobs where being on-site is essential but those in office environments can be managed remotely with great effectiveness and good productivity.

The benefits of reduced travel pressure and a more even spread of housing demand make absolute sense in 2024.

[abrin]

The tax system has all the benefits for the asset owner and very little for the productive worker.

[rehypotehcation]

Half way through this, and I've agreed with most of what he said. If you have always lived in and run a business in the UK you wont get the profound sense of just how bureaucratic and f'd up it is until you move to the USA and start again. I did, and couldn't go back. Everything from business rates, VAT, accounting, filings at Companies House, IR35, etc. is a sham that creates jobs for worthless, well-paid scroungers who work 35 hr weeks, get 6 weeks paid leave, and then retire on final salary pensions paid for by people like me. The self-employed are also left to navigate the City of London scum selling corrupt financial products that hide undisclosed liabilities.

The UK is a great country, with great people, and rotten self-interested, woke, government. How else would we have reached the point where the Tavistock Clinic was able to pursue voodoo science. How else would we spend a 29 billion GBP on Hinkley Point C when the same plant costs 9 billion in the USA, and how else would we end up with HS2 being cancelled because it's too costly to bring the UK into a modern world where high speed rail links major cities across Europe.

The conveyor belt from Oxbridge to the Cabinet is one reason we are so badly served, but the real reason for Britain's decline lies in British culture itself. We have been divided by Class, and then fed the Soylent Green of BBC and Channel 4. Millions sit and watch shit like East Enders and Coronation street when they should be out in their communities talking about how to make the things around them better. Go to any council estate and what do you see? Filthy streets, unkempt gardens, rotting window frames, chav cars and gangs of thugs. You can renovate houses but you cant renovate people.

[johnnevada]

I moved to Spain some 35 years ago.😢 Spain at that time seemed much less efficient than Britain. But how things have changed. In my small town (population 24, 000), the state has built two new secondary schools, a new courthouse, a new police station, a new motorway, a huge new industrial estate, a new swimming pool and sports centre, some 20 km of bike lanes, a new hospital, and almost everyone has 1Gb fibre optic internet. A similar British town would have received next to nothing. In addition, childcare and university for my two children was free. 😊

[showyourworkingout]

I prefer this Rory. Much better than the Stewart one.

[timcarpenter]

Perhaps one option is to unwind the legal and managerial shackles built up since 1997 or before.