Rory Sutherland

Rory Sutherland

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?

It’s easy to sex up the business of paying tax

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?

Could my slogan have swayed the Brexit vote?

From our UK edition

People sometimes ask what slogan could have swayed the Brexit vote: the opposite of the touchstone phrase ‘Take back control’. There are many suggestions, my own being: ‘Don’t leave — it’s what the French want us to do.’ No Europhile committee would ever have approved a jingoistic slogan, of course; yet the feelings of committed Europeans are irrelevant. Those people will vote Remain in any case. Instead you need to reach the ambivalent, sceptical or mildly hostile. This raises the central question about communication: do you want to feel good about yourself, or do you want to change the minds of others? The art of sloganeering can serve two powerful ends — persuasion or cementing tribal allegiance. Usually you can’t do both.

The art of persuasion | 23 May 2019

From our UK edition

People sometimes ask what slogan could have swayed the Brexit vote: the opposite of the touchstone phrase ‘Take back control’. There are many suggestions, my own being: ‘Don’t leave — it’s what the French want us to do.’ No Europhile committee would ever have approved a jingoistic slogan, of course; yet the feelings of committed Europeans are irrelevant. Those people will vote Remain in any case. Instead you need to reach the ambivalent, sceptical or mildly hostile. This raises the central question about communication: do you want to feel good about yourself, or do you want to change the minds of others? The art of sloganeering can serve two powerful ends — persuasion or cementing tribal allegiance. Usually you can’t do both.

The reason Britain’s big infrastructure projects ‘fail’

From our UK edition

In 2012 I finished a meeting in Berlin and headed to Tegel airport. Apparently mine was a historic flight, since the airport was to close that very week. Future flights would soon land at the wondrous new Berlin Brandenburg airport, which would be opening ‘within months’. Seven years later, planes still fly into Tegel. The new airport may open in 2020 or 2021; no one knows. So far, the project has cost €9 billion, triple the original estimate. The roof is 100 per cent overweight. All the electrical wiring may need replacing. The escalators were too short, so end not at floor level but on an ersatz plinth. Underneath, empty trains run daily into a six-platform ghost station to stop the tracks from rusting.

Britain is good at infrastructure. It’s the bureaucracy which holds things up

From our UK edition

In 2012 I finished a meeting in Berlin and headed to Tegel airport. Apparently mine was a historic flight, since the airport was to close that very week. Future flights would soon land at the wondrous new Berlin Brandenburg airport, which would be opening ‘within months’. Seven years later, planes still fly into Tegel. The new airport may open in 2020 or 2021; no one knows. So far, the project has cost €9 billion, triple the original estimate. The roof is 100 per cent overweight. All the electrical wiring may need replacing. The escalators were too short, so end not at floor level but on an ersatz plinth. Underneath, empty trains run daily into a six-platform ghost station to stop the tracks from rusting.

Why aren’t there more big infrastructure projects?

From our UK edition

In 2012 I finished a meeting in Berlin and headed to Tegel airport. Apparently mine was a historic flight, since the airport was to close that very week. Future flights would soon land at the wondrous new Berlin Brandenburg airport, which would be opening ‘within months’. Seven years later, planes still fly into Tegel. The new airport may open in 2020 or 2021; no one knows. So far, the project has cost €9 billion, triple the original estimate. The roof is 100 per cent overweight. All the electrical wiring may need replacing. The escalators were too short, so end not at floor level but on an ersatz plinth. Underneath, empty trains run daily into a six-platform ghost station to stop the tracks from rusting.

Inaction is often the best course of action

From our UK edition

I recently came across the Small Robot Company, a British agricultural robotics start-up. Their vision is that with smart, autonomous mini-tractors, the monoculture which has Mondrianised our landscape could be replaced by something more diverse. Farmers could plant multiple crops in the same fields, and practise new forms of rotation. Such an approach would also be sparing in its use of chemicals: rather than spraying fields indiscriminately, the robots would scuttle about like mechanical serfs, treating only areas that need it. Though a great-uncle was a world authority on Welsh Black Mountain sheep (he once gave a long and involved answer to a child’s joke question ‘Why do white sheep eat more than black sheep?

The unintended consequences of the new EU car speed limit

From our UK edition

A once famous question posed to job-seekers at Microsoft was ‘Why are manhole covers round?’ The question was revealing not because there was a single right answer, but precisely because there wasn’t. It helped elicit whether the applicant was someone happy to supply one plausible answer or someone who looked beyond the obvious. At a simple level, manhole covers are round because manholes are round. But there are other reasons. A circular manhole cover cannot fall down the hole beneath; a square manhole, if aligned diagonally, could. Round manhole covers can also be moved easily by rolling and replaced in any orientation. They are probably stronger than square ones. And so on. Equally good is the question asked of economics students by Professor Robert Frank at Cornell.