Jamie Whyte
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The British are increasingly wealthy. The economy has grown for 15 consecutive years. Per capita income is now higher than in France and Germany. Anyone who owns a house in London, or even a few of its bricks, is moving rapidly up the international rich list.
Yet the British are not content with their lot. Nothing satisfies us. Crime rates have fallen consistently since 1993, yet we think law enforcement a shambles. Trains are faster and safer than ever. Still, we consider the railways a disgrace. Waiting lists for surgery are shorter. Third World health service!
Upon meeting the wave of English immigrants in the 1970s, Australians dubbed them “whinging Poms”. Well, the Aussies should hear the Poms who stayed at home. It is a shame there is not an Ashes for complaining. An urn containing the cinders of a thousand self-combusting letters to the Editor would find an unchallenged home in a trophy cabinet at the offices of the Daily Mail.
Why should people who are so much better off complain so much? Why are the British so grumpy? Many consider it a mystery. And some consider it a shame. Surely a little gratitude is called for.
But it is not a mystery, as anyone who has worked in an expensive hotel could tell you. The rich are hard to please. Not because they are ungrateful egomaniacs who deserve a slap. They are hard to please because, unlike the poor, it is hard to know what they want.
If you doubt it, imagine you were a contestant on a game show called Spend My Money. The object is to allocate the spending of people you do not know as they themselves would choose to: 35 per cent on housing, 10 per cent on food, 5 per cent on clothes and so on.
The task would be relatively easy if you were spending on behalf of a pauper. He would put all his income into the basics: food, shelter, and clothing. But imagine you were spending for a billionaire. You wouldn’t know where to start. Or, rather, you would know only where to start. The basics consume less than 1 per cent of his income. How will you allocate the other 99 per cent? Should you buy a football team? A Picasso? Case loads of Château Palmer 1961? Everyone buys roughly the same things with their first £10,000 of income. Then they start to show some individuality.
Spend My Money is not a real game show, but it is a real model of government. And it explains why the increasingly rich British are increasingly grumpy about their “public services”.
Take education. Given even modest incomes, most seek schooling for their children. And their basic expectations are similar. They want their children to learn reading, writing and arithmetic. As people can afford more education, however, their preferences begin to diverge. I want an impractical education for my children: Latin, cello, hockey and all that. But I know people who would not waste a penny on such piffle: computing, accountancy and into the job market with you!
The same goes for healthcare. We may agree on what a service that costs us £500 a year should provide. But what extra should we get when we are spending £2,000? Nicer hospital rooms? Better-paid doctors? Viagra? People differ in how much and what flavour of icing they want on the basic healthcare cake. Force them to pay for any given quantity or flavour and most will feel cheated.
A natural reaction is to be sparing with the icing. If preferences are predictable only where the basics are concerned, a government may be reluctant to provide any more than basic tax-funded services. That is where things were headed under the previous Tory Government.
This may be tolerable if we could easily top up government spending to buy the kind of services we really wanted. But we cannot. I do not want my children to go to a bog-standard comprehensive and then get Latin and cello lessons at the weekend. I want them to go to a school with Latin and cello teachers. I might be able to pay the fees of such a school, if only I were not taxed to fund bog-standard comprehensives. By forcing me to spend £5,000 on an education I do not want, government stops me from paying £10,000 for one I do want. This explains the apparently perverse fact that the state provision of something often leads to low levels of aggregate spending on it.
New Labour and the Conservatives are dimly aware of the problem. In this age of “empowered consumers”, they declare, we must offer more choice in the public services. But this Third Way cannot work, and not only because monopoly suppliers are hopeless at responding to consumers’ preferences. Choice between equally expensive options does not address the Spend My Money problem. We empowered consumers differ not only in what kind of £5,000 education we want, but also in whether we want any kind of £5,000 education.
If Tony Blair and David Cameron are dimly aware of the problem, Gordon Brown seems dimly unaware of it. He has reversed the natural logic of Spend My Money. As we have grown richer he has increased the portion of our incomes that he allocates on our behalf. Either he believes that we all want roughly the same things, and that he knows what they are, or he thinks our preferences do not matter very much. Either way, he is on course to make us some of the grumpiest rich people in history.
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I think this was a great article.
Government should stick to what it is there for - the administration of services that do not adhere to the principal of markets.
Instead of branching out to try and provide more things, and things which are not universally required, government should stick to providing the basics and providing them well.
Leave me the rest of my tax dollars and the choice to spend them on whatever I want.
MW, London,
£120k on GPs is one thing. At least they provide some measurable output. But what about all the faceless unproductive bureaucrats? Who in their right mind - apart from a labour luvvy or Tony Crony - would spend all the money on OFCOM, CRE and all the other useless Quangos.
David Burdon, Ashford, United Kingdom
So all's well in Tonyland as long as we believe the spin.
Trains may be faster/safer, what a shame there're full and the roads are jammed. House owners might benefit from property prices but not the renters and homeless, squeezed out financially and geographically by immigration. Short hospital waiting lists are fine, when you are allowed on them, and the desperate scramble for a decent school should indicate some problems there.
Incomes may be increasing but so are contributions towards Gordon Brown's wonderful world. Please leave us the pleasure of whinging before that's taxed too.
R Bowden, London,
The point of a socialist government is, surely, to give the same education to all, fairly. Instead of demanding cello lessons for your child, shouldn't you demand the government provides cello for all children?
Jack Thursby, Sheffield, UK
I was one of those people who was unhappy with the state of the UK so I did something about it and moved to sunny Brisbane, Queensland. The trouble with us English is that we are all stiff upper lip, grin and bear it type people when we could stop whinging do something productive. My life could not be better and the opportunities I have recieved here in 5 years are outstanding. I own a house and a flat(because it's affordable) and I have gone from being a truck driver in England to being an operations manager here in Oz. To top it all off the weather is great.
If you are not happy then get off your backsides and do something about it!!
Mark, Bribane, Queenland
My observation as an Australian is that Brits and Aussies whinge equally - and alot. It seems the more we have, the more we feel entitled too. One other interesting aspect of our cultures is that a whinge is seen as somewhat acceptable - almost an icebreaker with strangers and very often done in good humour.
Regarding Australia's convicts, an overwhelming majority of Australians have not a drop of convict blood, and those that do can trace back their ancestors as petty not heinous criminals (they were hanged). As a means of insult, references to convict heritage are meaningless here. They are more likely to raise a wry smile in the same way a mother might react to a frustrated small child calling her 'stupid'.
Justin, Melbourne, Australia
No, S. Martin is wrong. According to the Oxford English Dictionary, "pom" comes from "pomegranate", which is a play on words, based on "immigrant". The original "poms" were immigrants from Britain to Australia.
Herbert G., Leeds, West Riding
Yes - intersting article. But I would like to see a decent healthcare cake being made before anyone worries about icing it..........
agb, alvechurch,
'Pom' is an acronym, properly POHM - Prisoner Of Her Majesty. As an Englishman I have no objection to being called a Whinger but I do object to being labeled as a POHM: by definition it is Australians who are the POHMs. So please don't perpetuate the myth.
S Martin, London, England
Is Jamie Whyte describing the U.K? Five hours on the train between Liverpool and York on the slowest rains in western Europe. Multiple violent crimes which aren't reported on the news in my locality. A health service which doesn't care that I have a degenerative eye condition and in the four years previous to me becoming a mature student I lost the ability to afford to live in a one bedroom flat due to council tax rises; with more on the way. This depsite working 50 hour weeks and having no debt. Anyone who is single and earning less than average wage in this country has plenty to 'whinge' about. I just wish the British would stop complaining and start acting against a government that treats the people as a bottomless money pit.
David, York,
An excellent article, except it seems that Jamie Whyte is completely unaware of the fact that Australians are the world champions of whinging (much as I like them in other respects).
HJ, Reading, UK
I normally agree with Jamie Whyte's analysis, but here I think he misses the point. I do not want Gordon or Tony to spend my money on anything other than what Government has any real duty to deliver, namely Security and Justice. In order to get what I really want I would have to send my children to Private schools and buy health insurance, neither of which I can afford, and both of which involve paying twice for what Government inadequately delivers.
I don't want to be pampered, I want to spend my money on my priorities, not soneone elses.
Richard, Preston, UK
Actuallly, the only grumpy people I know in Britain are newpaper columnists, who all seem intent on telling us how grumpy we all are.
Although, I don't live in London, which may have something to do with it.
Douglas, Edinburgh, UK
In the 2006 Budget*, the Chancellor announced that he could return money to taxpayers. But he wouldn't. Because he knew how to spend it. On education: "There are those who say as with the £1.5 billion I have already found for law and order, security, environ-ment and the Olympics this £440 million for education should be used to cut taxes, and I could, of course, afford to do so. But I say: investing in education comes first. And in-vesting in education is this budgets choice".
There. A naked statement that he personally knows how to allocate resources better than the market.
I love the notion that he found this £1.5bn.
*http://www.hm-treasury.gov.uk/budget/budget_06/bud_bud06_speech.cfm
David Moss, London, UK
Maybe it's the more you have the more you want syndrome or is because the weather is lousy?
I will willingly spend your excess money.
Nickh, Perth, Australia
In the 2006 Budget*, the Chancellor announced that he could return money to taxpayers. But he wouldn't. Because he knew how to spend it. On education: " There are those who say as with the £1.5 billion I have already found for law and order, security, environment and the Olympics this £440 million for education should be used to cut taxes, and I could, of course, afford to do so. But I say: investing in education comes first. And investing in education is this budgets choice".
That was his most naked statement so far that the he knows how to allocate resources better than the market. And it is false.
I love the notion that he found this £1.5bn.
Spend my money, indeed!
*http://www.hm-treasury.gov.uk/budget/budget_06/bud_bud06_speech.cfm
David Moss, London, UK