Blog: Do we need to find our inner child?

Blog by Susan Murray, David Hume Institute

April 2021

Many of us will know or have children who ask ‘why’ a lot - sometimes so often that no matter how much you want to encourage curiosity and learning, you lose patience and resort to phrases like “because I say so”.  

On the whole though I am delighted to be asked questions. Two recent favourites from my children have been: if two wrongs don’t make a right, why do two negatives make a positive?  And, why do people buy pencils with rubbers on the end, as the rubber always runs out before the pencil and then the metal bit is just waste? A good question for Zero Waste Scotland.

I had never thought about either of these things before and as an adult, I wonder if too often people forget to ask questions.  

The daily coverage of the economy is a good example. For years the economic narrative has been dominated by a narrow range of voices. What has become clear through Covid is every choice can have benefits and consequences. Choices about the economy are no different. And, with choices, there are trade-offs to consider.

Many people that previously felt on a treadmill are stepping off as the pandemic has given them a chance to re-evaluate what matters in their lives. My first visit to the hairdresser post pandemic was a good example. My hairdresser sold her house last autumn. She has moved out of the city and has gone mortgage free by combining resources with her sister and parents on a single property. This solves several problems the family had been worrying about for years; about intergenerational caring responsibilities; mortgage payments and pension worries. Put simply it “takes the pressure off so we can all enjoy life more now and are not worrying about money so much”. 

As many commentators speak of the economy returning to normal, they fail to notice that my hairdresser is not the only one whose life has changed dramatically over the last year. So many people have experienced bereavement, loneliness and loss of income, but even for those that have remained relatively unscathed their lives have changed in other ways. 

My family, like so many, have got a dog. After years of thinking about it and using the website Borrow My Doggy we took the plunge. Lockdown was a great chance for puppy training and our new addition has had a huge positive impact on my children, but this means even when everything is opened up again we are likely to be living very similarly to this moment.  Long family walks and holidays in Scotland. The massive rise in dog ownership means many people’s future economic choices are likely to be different. 

Recent research from the David Hume Institute showed how many people intend to continue their 2020 behaviours in future. Covid brought communities together and many people have experienced the power of being connected through helping others. So what if – my favourite question opener – the economy doesn’t return to “normal”?

Pre-Covid our economy encouraged people to increase their consumption and buy more stuff, but the data shows this wasn’t making people any happier. More and more people are living alone, and we have been accepting this trend by building more single person dwellings, but the data clearly shows people living alone are more likely to be lonely and be financially insecure.

What if we can return to something better than the old normal?

I was listening to Professor Ben Friedman talk recently about Adam Smith and what he really meant by wealth. It showed how much of economic thinking in recent years has been dominated by a narrow mindset and assumptions. Many use the term 'wealth' to simply mean money but in economics, wealth refers to those goods which satisfy human wants, but all goods which satisfy human wants are not wealth.

My hairdresser certainly feels more wealthy now than previously when she owned more stuff. Over the course of the David Hume Institute’s research I have heard so many stories of people making changes to their lives which on the face of it could have a negative effect on GDP - for instance as consumption could go down by combining houses. 

But surely those who argue for a return to normal would not want individuals to continue struggling in their old lives when there is an option to be happier and wealthier in the true meaning of the word?

Blog: Are we picking the right top team?

by Lucy Higginson, David Hume Institute

8th October 2020

Have you ever looked around a meeting room and noticed lots of similar people?  The David Hume Institute’s latest research shows that the top leaders in Scotland do not reflect the diversity of the country. 

Diversity of thought and different life experiences can help problem solving and the ability of organisations to face shocks and build sustainably.

Lack of diversity in leaders is a threat which can lead to groupthink.  Investment companies like Baillie Gifford and Blackrock are increasingly analysing leadership diversity because of the links to increased profit and innovation. 

If I am honest, I thought the data would have shown more change in the five years since the Institute first undertook research with the Social Mobility Commission. 

We know work by organisations like the ICAS Foundation and the Law Society of Scotland is broadening entrants to their professions. Changing the Chemistry has been championing diversity of thought on boards since 2012 and the National Advisory Council on Women and Girls is now in its third year. Initiatives like Pass the Mic and Equate Scotland’s speaker lists are helping to broaden the voices heard in the media.

But this week the issue at the top of the legal profession was highlighted by Supreme Court Judge Lord Reed’s comments on the lack of diversity in our top courts. And, last month the experience of barrister Alexandra Wilson highlighted unconscious bias in the legal profession in England.  Law along with Business were the two sectors we found least diversity in the top leaders in Scotland.

Change is happening but it needs to happen faster at the top.

At the current rate, I will be retiring before the top leaders in Scotland are representative of the population.  

Why does this matter? 

We have big challenges on the road ahead.  The aftermath of Covid-19 and the immediacy of climate change means business as usual is not an option.  There is no time for fixed mindsets, leaders need to be open to being challenged.  Digital disruption means many new opportunities but there will also be risks. We need every leader to be on their a-game.

The challenges ahead mean Scotland needs all of our current top leaders to actively champion diversity and proactively provide the opportunities to ensure faster progress for everyone’s benefit.

It is time for deeds not words. 

In conversation: Jonathan Taylor and Fran van Dijk

EICC Live and the David Hume Institute presents Jonathan Taylor in conversation with Fran van Dijk.

Blog: Prioritising priorities for economic recovery

Blog by Susan Murray, Director, David Hume Institute

20th April 2020

We are moving into a new phase of the Covid-19 public health crisis and thoughts are turning to the foundations for economic recovery.

The sudden and dramatic disruption of the shutdown, triggered an economic shock far bigger than anything we have in recent years. In a webinar, Adair Turner said the number one priority should be increasing consumption to help GDP return to pre-coronavirus levels. Many economists are emphasing the need to make this a V-shaped shock, a sharp decline followed by a quick sustained economic recovery.

But the shutdown has also provoked much reflection on how we are living our lives, both individually and collectively.

Post-pandemic we will still have a climate emergency.  The world’s resources are still finite.  Encouraging those that have money to spend unsustainably might not be the best way forward.

There is a chance to think about established norms.  For instance, will long complicated global supply chains still be desirable?  

Food security has fallen off the Government’s radar in recent years but an increasing number of people have taken action to grow their own food according to figures from the Royal Horticultural Society. Is this a sign of loss of trust in supply chains?

Acting locally doesn't have to be a substitute for thinking globally, it can be an ally. 

The Scottish Government was the first in the world to sign up to the Sustainable Development Goals.  Now more than ever before, these goals need to underlie decision making and ensure that it is not just the industry that shouts the loudest or has the best lobbying that secures public funding.

Scotland would not be alone in considering this as a chance to rethink the path ahead. A group of 180 political decision-makers, business leaders, trade unions, campaign groups and think tanks urged the EU to adopt green stimulus measures. Amsterdam has already shown leadership in announcing it is working with economist Kate Raworth, author of Doughnut Economics on delivering a “Doughnut City”.  

In Denmark bold leadership from the government means companies which pay out dividends, buy back own shares or are registered in tax havens won’t be eligible for any of the aid programs.  Will other countries follow this lead?

Fears of the economic deficit must not be allowed to crowd out smart thinking. There are very strong reasons for not returning to business as usual so propositions aimed at taking us back to things as they were are particularly unlikely to constitute the best approach.

Constructing a positive way forward will involve embracing the complexity of our future choices.

The Scottish Government must hold strong to the UN Sustainable Development Goals and emissions reductions targets, and ensure any precious public money invested to reboot the economy, does maximum public good.