Rory Sutherland

Rory Sutherland

This year’s top gadgets – according to my inner chimp

From our UK edition

I’d hoped to spend this week writing about my new Geberit Japanese-style toilet, but since the grout is not yet dry, all you filthy toilet-gaijin will have to wait until the new year for my review. So I thought I’d write instead some reviews of my favourite gadgets of the year. But since our real reasons for buying gadgetry have nothing to do with the hastily contrived post-rationalisations created in the prefrontal cortex, in the interests of impartiality, I have asked my inner chimp to provide an honest second opinion on each.   1) Smart energy meter (free). Prefrontal cortex verdict: ‘Blah blah blah energy reduction, green industrial revolution, global warming, polar bears.’ Inner chimp: ‘Sod the bears —they’re terrifying.

No one else has the weird levels of self-regard shown by people who appear regularly on TV

From our UK edition

One of the more tedious tropes of recent years is for journalists to bemoan the rise of populism while busily casting about for some dark force to which to attach the blame. Mark Zuckerberg, Google, nameless Russians, an uneducated populus, social media, whatever. One avenue that is rarely explored is that a major cause of the rise of populism might be the journalists themselves, and the extent to which the once noble aim of impartiality has led to something ridiculous — where almost everyone in authority is treated as a liar. For the past three decades, Britain has had centrist governments led by mainstream politicians. And in that period, did we find that journalists devoted much airtime and column inches to reporting this as a good thing? We did not.

How veganism became mainstream

From our UK edition

I have just returned from Canada, which seems to share Britain’s new-found obsession with veganism. There, chains such as Burger King and KFC are offering plant-based alternatives to meat-based meals. Five years ago could anyone have predicted this? True, vegetarianism has been growing for many years, but did anyone foresee its most extreme variant rapidly ‘crossing the chasm’ to go from an oddball niche to a standard lifestyle choice? The ‘chasm’ is that mysterious and often impermeable barrier all technologies and behaviours must traverse if they are to make the critical leap from being a weird minority interest to an unquestioningly accepted option.

How status seeking leads to bad decision-making

From our UK edition

Whenever I use the security lane at an airport, I enjoy watching people retrieving their bags and metallic items when they emerge from the X-ray machine. You can quickly divide the population into two: a small minority of ‘logistically aware’ systems-thinkers and the logistically challenged majority. To anyone with a grasp of systems thinking, it is obvious that the throughput of a security line is reduced when only a few people can retrieve their belongings at once. People who self-importantly collect their stuff as soon as it exits the scanner are slowing the queue by 70 per cent or more.

Plumbers always have the best restaurant recommendations

From our UK edition

Whenever I use the security lane at an airport, I enjoy watching people retrieving their bags and metallic items when they emerge from the X-ray machine. You can quickly divide the population into two: a small minority of ‘logistically aware’ systems-thinkers and the logistically challenged majority. To anyone with a grasp of systems thinking, it is obvious that the throughput of a security line is reduced when only a few people can retrieve their belongings at once. People who self-importantly collect their stuff as soon as it exits the scanner are slowing the queue by 70 per cent or more.

Why averages don’t add up

From our UK edition

I recently learned from a doctor friend that salt isn’t necessarily bad for you. Yes, there is a minority whose blood pressure isdriven haywire by eating the stuff, but most people can consume it without much risk. The reason we are formally advised to avoid salt is that lowering salt consumption improves public health on average: salt reduction is helpful to the few who are affected, while being generally harmless for everyone else. This makes sense at first. Except it leads to a problem. Because if you demonise every food that is harmful only to a minority, you risk recommending so many dietary restrictions that life becomes intolerable. A better answer may lie in personalised medicine: ‘In your case, I’d concentrate on avoiding three things first.

Why business is perfectly relaxed about Brexit

From our UK edition

It’s difficult to go into the office nowadays, since most of my colleagues are so distraught by the prospect of a no-deal Brexit that they rarely speak. The finance department have painted European flags on their faces for solace, and spend the day staring blankly out of the window sobbing over a tear-stained picture of Guy Verhofstadt. Except, um, no. None of this has happened. In fact, most businesses seem weirdly calm in contemplation of a no-deal Brexit. I have met people from multinationals who are sanguine about Brexit, and those who are worried, but few get emotional about the subject as, say, academics, politicians or journalists do. Brexit has all along been a political problem, not a commercial one.

Business: the only human activity where you’re paid to change your mind

From our UK edition

In 1891, a 29-year-old man moved from Philadelphia to Chicago intending to start a business. With $32 to his name, he began by selling scouring soap. Hoping to boost sales, he gave away small packets of baking powder with every purchase. Soon he found that the baking powder was more popular than his soap, so he quit the soap market and started selling baking powder instead. But now he needed something to give away with his baking powder. Eventually, for reasons I cannot begin to fathom, he took to giving his customers two free packs of chewing gum with each tin of baking powder. And then the same damned thing happened again. He found that the free gum was more popular than the baking powder.

Business is the only area of human activity where you get paid to change your mind

From our UK edition

In 1891, a 29-year-old man moved from Philadelphia to Chicago intending to start a business. With $32 to his name, he began by selling scouring soap. Hoping to boost sales, he gave away small packets of baking powder with every purchase. Soon he found that the baking powder was more popular than his soap, so he quit the soap market and started selling baking powder instead. But now he needed something to give away with his baking powder. Eventually, for reasons I cannot begin to fathom, he took to giving his customers two free packs of chewing gum with each tin of baking powder. And then the same damned thing happened again. He found that the free gum was more popular than the baking powder.

Why no one ever moves back to London

From our UK edition

In last week’s Spectator, Martin Vander Weyer replied to a couple with a baby who had sought his advice on accepting a low offer for their cramped London flat to buy a house in commuterland. Their fear was that, if Brexit led to a property crash, they could face negative equity. Should they call the whole thing off? Emphatically not, said Martin. ‘Buying a family home is a long-term choice, rarely regretted, in which fluctuating value matters far less than whether you love the house.’ He’s right, I’m sure. But I’d like to add a further thought experiment which may reaffirm their decision. I recently heard of a different property dilemma: two married London teachers in their early fifties owned a small house now worth just under £1 million.

Looking for a new idea? Try borrowing an old one

From our UK edition

Recently I suggested a new approach to commuter-train overcrowding. It simply involved reformulating the problem by accepting that not all overcrowding is equally bad: 100 people forced to stand 10 per cent of the time do not experience anything like the same irritation as ten people who have to stand 100 per cent of the time. So my suggestion was that a proportion of peak-time train seating — even a few peak-time trains — should be reserved for annual season ticket holders. But when I mentioned this to a group of engineers, one pointed out something that hadn’t occurred to me: ‘Airlines already do that.’ ‘They do?’ ‘Well, airlines don’t have season tickets, but they do have frequent flier programmes.

Why do we remain disillusioned, when our material quality of life improves?

From our UK edition

Today we suffer disillusion, not because we are poorer than we were — on the contrary, even today we enjoy, in Great Britain at least, a higher standard of life than at any previous period — but because other values seem to have been sacrificed and because they seem to have been sacrificed unnecessarily, inasmuch as our economic system is not, in fact, enabling us to exploit to the utmost the possibilities for economic wealth afforded by the progress of our technique, leading us to feel that we might as well have used up the margin in more satisfying ways. If you finished that paragraph and thought ‘Gosh, Sutherland has really nailed the contemporary malaise’, you are probably right. Except for two things.

Is the future flexible?

From our UK edition

Today we suffer disillusion, not because we are poorer than we were — on the contrary, even today we enjoy, in Great Britain at least, a higher standard of life than at any previous period — but because other values seem to have been sacrificed and because they seem to have been sacrificed unnecessarily, inasmuch as our economic system is not, in fact, enabling us to exploit to the utmost the possibilities for economic wealth afforded by the progress of our technique, leading us to feel that we might as well have used up the margin in more satisfying ways. If you finished that paragraph and thought ‘Gosh, Sutherland has really nailed the contemporary malaise’, you are probably right. Except for two things.

Why has London Bridge station been shortlisted for an architectural prize?

From our UK edition

London Bridge station has been shortlisted for the Riba Stirling architects prize. The jury said its "impressive" new concourse had "significantly improved the experience of those who use it daily". That's nonsense, says The Spectator's Wiki Man, Rory Sutherland: In the shadow of the Shard, not far from Borough Market, is a £1 billion public artwork, an allegorical sculpture entitled ‘What is wrong with the world today’ by the reclusive wunderkind Netwór Krail. It was officially unveiled by the Duke of Cambridge last year. The reason you may not have read about this monumental piece is that most of the press coverage failed to notice this structure was a landmark in experiential art. They mostly used its banal official name: the new London Bridge station.

Here’s a consumer tip, for what it’s worth

From our UK edition

‘Suppose you bought a case of claret a few years ago for £20 a bottle. It now sells at auction for about £75. You have decided to drink a bottle. Which of the following best captures your feeling of the cost to you of drinking the bottle?   1. £0. I already paid for it. 2. £20 — what I paid for it. 3. £20 plus interest. 4. £75, what I could get if I sold the bottle. 5. -£55. I get to drink a bottle that is worth £75 that I only paid £20 for, so I save money by drinking it.’   This question (with prices in dollars) was given to readers of Liquid Assets, an annual newsletter on wine auction pricing. It was posed by Richard Thaler, later to win the Nobel Prize in Economics.

Why governments should spend big on tech | 6 July 2019

From our UK edition

I was talking to a large Silicon Valley video-conferencing firm the other day. ‘Just for interest,’ I asked, ‘what would it cost to provide your service to 65 million people?’ The reason I asked is simple. I don’t understand why it is fine for government to spend £60 billion on a railway or £20 billion on an airport, but not, say, £300 million a year providing the whole country with first-rate video-calling technology. The argument for the UK seems especially compelling. An English-speaking country situated on the Greenwich meridian is likely to gain disproportionate business advantage from the widespread adoption of video--conferencing.

Why governments should spend big on tech

From our UK edition

I was talking to a large Silicon Valley video-conferencing firm the other day. ‘Just for interest,’ I asked, ‘what would it cost to provide your service to 65 million people?’ The reason I asked is simple. I don’t understand why it is fine for government to spend £60 billion on a railway or £20 billion on an airport, but not, say, £300 million a year providing the whole country with first-rate video-calling technology. The argument for the UK seems especially compelling. An English-speaking country situated on the Greenwich meridian is likely to gain disproportionate business advantage from the widespread adoption of video--conferencing.

The service station problem: it’s becoming impossible to correct a mistake

From our UK edition

My first award for intelligent design this week goes to Dublin airport for displaying a sign which reads ‘Lounges. Turn back. No lounges beyond this point.’ It may seem like a trivial thing, but it takes a rare intelligence to think in this way. It’s one thing to put up a sign that says ‘Lounges, this way’. But it takes nous to think ‘yes, well and good, but what happens if people see the first sign but miss the second one?’ In all likelihood, they would end up walking 500 yards in the wrong direction, as I nearly did. Signage and wayfinding are mostly designed for people who never make mistakes. Should you misread your gate number at an airport, and end up at gate 92 instead of gate 29, you are doomed.

Signs of the times

From our UK edition

My first award for intelligent design this week goes to Dublin airport for displaying a sign which reads ‘Lounges. Turn back. No lounges beyond this point.’ It may seem like a trivial thing, but it takes a rare intelligence to think in this way. It’s one thing to put up a sign that says ‘Lounges, this way’. But it takes nous to think ‘yes, well and good, but what happens if people see the first sign but miss the second one?’ In all likelihood, they would end up walking 500 yards in the wrong direction, as I nearly did. Signage and wayfinding are mostly designed for people who never make mistakes. Should you misread your gate number at an airport, and end up at gate 92 instead of gate 29, you are doomed.

It’s easy to sex up the business of paying tax | 9 June 2019

From our UK edition

To fund the war against Napoleon in 1813, Princess Marianne of Prussia invented an ingenious tax-raising scheme. Wealthy Prussians were called on to hand their jewellery to the state; in exchange they were given iron replacements for the gold items they had donated. Stamped on the iron replicas were the words ‘Gold gab ich für Eisen’. The phrase has a double meaning, the iron referring to the iron of the replica, but also to the ‘iron’ your donation had bought as armaments. At Prussian balls thereafter, iron jewellery carried more status than gold. Gold merely proved your family was rich; iron proved you were not only rich but patriotic. Why does no one try such ideas today?