In a dramatic revelation, Prime Minister Emoji has revealed a bulk purchase of one billion Facebook ‘Likes’ with a discount for adopting the correct dual thumbs up gesture as official … Continue reading Prime Minister Emoji: Outsourcing Images Chapter 11.
Facebook has been been fined for the massive data leak to Cambridge Analytica, which broke the law. I can almost hear the echoing laughter around Silicon Valley from my house.
The fine is for two breaches of the Data Protection Act. The Information Commissioner’s Office (ICO) concluded that Facebook failed to safeguard its users’ information and that it failed to be transparent about how that data was harvested by others. Facebook breached its own rules and failed to make sure that Cambridge Analytica had deleted the harvested personal data.
Elizabeth Denham, the information commissioner, said “Facebook has failed to provide the kind of protections they are required to under the Data Protection Act. Fines and prosecutions punish the bad actors, but my real goal is to effect change and restore trust and confidence in our democratic system.”
Kyle Taylor, director of campaigning group Fair Vote UK said “Under new GDPR (General Data Protection Regulation) laws, the ICO could fine Facebook £479m.
“Unfortunately, because they had to follow old data protection laws, they were only able to fine them the maximum of £500,000. This is unacceptable,” he said.
Denham said “this is not all about fines,” adding that companies were also worried about their reputation.
She said the impact of behavioural advertising, when it came to elections, was “significant” and called for a code of practice to “fix the system”.
The fine was issued along with scathing report from the ICO, which issued the maximum fine allowable under old data protection laws – £500,000. The social network was accused of failing to protect user data and failing to be transparent about how it shared information with third parties.
The ICO investigation also highlighted the extent to which political parties were using personal data sold on by data brokers without consent. It was announced that the ICO is expanding its 14-month investigation into data and politics, which has centred on the Facebook data leak, into whether Arron Banks, a major donor to the campaign for the UK to leave the EU, improperly gave pro-Brexit groups data about voters obtained for insurance purposes.
The ICO is also investigating whether Banks’ Eldon Insurance Limited’s call-centre staff used customer databases to make calls on behalf of Leave.EU. The official Remain campaign, Britain Stronger In Europe, is also being investigated over how it collected and shared personal information.
The ICO opened its inquiry in May 2017 “to explore practices deployed during the UK’s EU referendum campaign but potentially also in other campaigns”. Elizabeth Denham, said the ICO had been “astounded” by the amount of personal data in the possession of Britain’s political parties. (See The government hired several murky companies plying the same methods as Cambridge Analytica in their election campaign, which details the many subterranean companies that the government employed during the run-up to last year’s general election. I sent the ICO a copy).
It’s understood that the ICO sent warning letters to 11 political parties and notices compelling them to agree audits of data protection practices, and started a criminal prosecution against SCL Elections – parent company of Cambridge Analytica, after accusing the company of failing to deal properly with a data request.
SCL Elections declared bankruptcy in May, two months after the Observer reported that 50m Facebook profiles had been obtained. Denham said the ICO was examining whether the company’s directors could be still be pursued now that SCL Elections had been placed into administration.
The investigation also found that Aggregate IQ, a Canadian electoral services company, had “significant links” to Cambridge Analytica, Denham said, and “may still retain” data about UK voters; the ICO has filed an enforcement notice against the company to stop processing that data.
Facebook had sought to draw a line under the data privacy scandal after revelations that it allowed data from up to 87m US voters to be harvested and then passed to Cambridge Analytica, a company employed in the presidential campaign of Donald Trump.
Denham said: “We think they broke the principle of fair processing; we think it was unfair processing. Data controllers are supposed to have reasonable safeguards in place to process data and we felt they were deficient in that and in their response on questions and follow up about the data leak.”
“Most of us have some understanding of the behavioural targeting that commercial entities have used for quite some time. To sell us holidays, to sell us trainers, to be able to target us and follow us around the web.
“But very few people have an awareness of how they can be micro-targeted, persuaded or nudged in a democratic campaign, in an election or a referendum.
“This is a time when people are sitting up and saying ‘we need a pause here, and we need to be sure we are comfortable with the way personal data is used in our democratic process’.”
He said: “This cannot by left to a secret internal investigation at Facebook.
“If other developers broke the law we have a right to know, and the users whose data may have been compromised in this way should be informed.”
“We were significantly concerned around the nature of the data that the political parties had access to,” said Steve Wood, the deputy information commissioner, “and we followed the trail to look at the different data brokers who were supplying the political parties.
Responding to the ICO report, Christopher Wylie said: “Months ago, I reported Facebook and Cambridge Analytica to the UK authorities.
“Based on that evidence, Facebook is today being issued with the maximum fine allowed under British law.
“Cambridge Analytica, including possibly its directors, will be criminally prosecuted.”
The ICO intends to carry out an audit of the University of Cambridge’s Psychometrics Centre. The department carries out its own research into social media profiles. The ICO said it had been told of an alleged security breach involving one of the centre’s apps and had additional concerns about its data protection efforts.
The watchdog also calls for the government to introduce a code of practice limiting how personal information can be used by political campaigns before the next general election.
They will also make an effort to ensure ex-staff from SCL Elections and Cambridge Analytica do not illegally use materials obtained from the business before its collapse
The ICO said it is expected that the next stage of its investigation to be complete by the end of October.
The problem of data mining and psychographic profiling far exceed the revelations about the wrong doings of Facebook and Cambridge Analytica. Psychological manipulation of citizens by both corporate entities and governments is now the norm.
The moment that we accept that it is legitimate for governments to ‘influence citizen decision-making’ and impose a ‘behavioural change’ agenda on a non-suspecting, non-consenting public, it becomes a slippery slope from there into a cesspit of private vested interests, one-party states, corporatocracy, tyranny and ultimately, to totalitarian forms of governance.
The Cambridge Analytica/Facebook scandal is the first ‘case study’. It’s a symptom of a much more fundamental problem. Mass surveillance, data profiling and behavioural modification strategies are embedded in the corporate sector and are now being used in a way that challenges the political canon of liberal democratic societies, where citizens are traditionally defined by principles of self-determination.
The political integrity and the future of democratic sovereignty has been seriously undermined because of the fundamental erosion of citizens’ right to self determination. Power imbalances are being created, recreated and amplified via the non-transparency of corporate and political practices, aimed at surveillance, data collection, psychological profiling and psychologically tailored messages, aimed at manipulating citizens’ perceptions, decision-making and behaviours, which serves to ultimately profoundly limit the choices available to them.
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I’ve been criticising nudge and the closely related discipline of behavioural economics for a few years, sometimes with an international audience (see, for example: The connection between Universal Credit, ordeals and experiments in electrocuting laboratory rats.) Nudge has increasingly seen by governments as a cheap and effective way of achieving
social political goals in an era of austerity.
I have several objections to the “behavioural turn”; some are to do with its impact on democracy, others are to do with its class contingency: poor people are disproportionately nudged, and without their consent. When I say ‘disproportionately’, I mean almost exclusively.
Over the last seven years, behavioural economics has come to be seen as something of a technocratic fix for a failing and overarching socioeconomic system. However, it has more in common with PR, marketing and advertising than psychology or economics. It’s part of the ‘sales pitch’ for neoliberalism, which is already a sold out event.
Behavioural economics epitomizes an era in which politics is concerned chiefly with saving money and combating the symptoms rather than the causes of growing social inequality. Nudges may serve to make poverty infinitesimally more bearable for the government, who can say that they are doing something to ‘solve’ poverty, but certainly not for the poorest people. When you zoom out, you see clearly that exactly nothing is being solved at all. At best, nudge is like persuading a person to learn how to swim in a clean and tidy swimming pool, and them throwing them back into a maelstrom out at sea.
The poorest citizens are targeted with punitive, heavily bureaucratic policies and an administrative authoritarianism, while wealthy people get the freedom to do as they please, and a rewarding form of state libertarian socialism, where the regulation book is ripped up. Unaccountable private companies design nudge strategies for profit, politicians and civil servants learn them and become board room, arm-chair psychologists, experimenting on ordinary citizens to find ways of not paying out for public services. All without the publics’ consent.
What could possibly go right?
The government and their small army of behavioural economists argue that citizens’ characters, cognitive ‘limitations’ and ‘flawed’ decision making is the root cause of poverty and creates inequality, so handing over money every year to poor people is akin to “treating the symptoms, but ignoring the disease.” Margaret Thatcher, the High Priestess of neoliberalism, once called poverty a
However, this narrative is based on assumption and fails to take into account the possibility that people’s decisions, behaviours and circumstantial problems are not the cause but the consequences of poverty. Giving poor people more money might well just genuinely work wonders, because simply having too little is THE problem.
Nudge is an authoritarian prop for a failing neoliberal ideology and policies. Most citizens don’t benefit from a system founded on accumulation by dispossession – a concept presented by David Harvey, which defines the neoliberal capitalist policies in many western nations, from the New Right Thatcher era to the present day, as resulting in the centralisation of wealth and power in the hands of a few, by dispossessing the public of their wealth, public services and land. And increasingly, their autonomy, as public perceptions and behaviours are being aligned with politically determined neoliberal ‘outcomes’. It’s a vicious cycle – a maelstrom.
Nudge is politically ‘justified’ by a draconian, ideological framework of beliefs, partly based on Victorian meritocratic notions of ‘deserving’ and ‘undeserving’. One theme is that poor people lack the qualities or capacities to be economically competent, and simply make the ‘wrong’ choices. But in a system where everyone competes for resources (as well as a democratic voice, government attention and funding), not everyone is permitted to be wealthy. That is the nature of ‘competition’. There is no such thing as ‘trickle down’ either. Wealthy people don’t generally share their wealth.
Furthermore, being poor isn’t particularly lucrative, in fact poverty itself tends to be accumulative. Poor people are financially penalised and economically excluded. Poor citizens can’t get loans when they need them, unless they are prepared to pay eyewatering interest rates, of course. Pay as you go metered utilities – gas, electric and water, for example – tend to cost rather more than a monthly or quarterly direct debit. Poor people who get into debt with utility companies tend to be coerced into having payment meters fitted, as they are considered at ‘risk’ of defaulting on payments by big businesses.
It’s somehow become obscenely normal to charge poor people more money than wealthy people for the same services and utilities. I’ve yet to hear of a poor person who became less poor because they are being punished by having more money taken from them.
However, being wealthy is very lucrative; it’s the gift that keeps on giving. This discrimination has been dressed up carefully with a political narrative, using terms like “incentives”. For wealthy people, a reward of more money is apparently an ‘incentive’ to just keep on being wealthy.
Poor people, however, seemingly require a different form of ‘incentivisation’. They need to be told that it’s ‘wrong’ to be poor, and that it is their own fault, rather than the consequence of a prejudiced and discriminatory government and their flawed, prejudiced and discriminatory policy designs. In a so-called meritocratic system, it follows that wealthy people ‘deserve’ their wealth – even though at least one third of them simply inherited it – and poor people deserve to be poor. If it wasn’t for the myth of meritocracy, inequality and burdening those in poverty with a sense of shame and personal failing would be considered abhorrent. However, neither neoliberalism nor it’s PR and strategic communications agent, behavioural economics, are drawn from the philosophical well of human kindness. They came to life in the degenerative, dry ruins of once civilised societies, marking a Fin de Siècle of late capitalism.
The socioeconomic system of organisation – neoliberalism – eliminates the possibility that everyone can ‘win’, since neoliberalism is itself founded on competitive individualism, which permits only a few ‘winners’ and many more ‘losers’. The existence of absolute poverty in a wealthy country is ample evidence of a fatally flawed system, so the government uses a rhetoric of a myth – meritocracy – to justify the status quo, blaming citizens’ ‘behaviours’ and ‘attitudes’, rather than recognising the real problem and changing the system, which generates inequality from its very core.
So poor people are penalised for being poor by being ‘incentivised’ by punitive economic sanctions that entail losses from the little money they have. This is so appallingly cruel, because scarcity completely consumes people. It eats away at human potential and stifles possibilities. And removes choices.
The patronising ‘paternalism’ of a government that assumes it ‘knows what is best’ for people – punitive nudges delivered by a group of privileged, powerful and prejudiced elitists – is doomed to fail. The key reason is that being poor means having less choice to start off with. Poor people don’t act on available choices because they can’t. They have none. They are compelled to act on necessity.
Maslow’s hierarchy of needs outlines that our most basic needs are biological, and meeting these needs is a necessity for survival. There isn’t a ‘choice’.
Taking money from poor people is simply cruel and barbaric. It reduces ‘choices’ and increases necessity and desperation.
If we can’t meet our fundamental needs, we can’t meet higher level psychosocial needs either – the ones that do entail choices about our lives. Poverty has got nothing to do with making “irrational choices” at a personal level. It’s got everything to do with being left with NO choices.
There is a world of difference between ‘choice’ and ‘necessity’. It is time the government and the technocratic behavioural economists busy propping up a failing system recognised and acknowledged this. People are poor because we have a system that diverts available resources away from them, hanging them out to dry. Until that fundamental fact is addressed, nothing will change.
It’s time for a serious and open political debate about inequality, the limits of nudge, democracy and the fundamental failure of neoliberalism. It’s time to stop blaming poor people for poverty and inequality.
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Christopher Wylie told a select committee earlier that the pro-Brexit campaign had a “common plan” to use a network of companies to get around election spending laws and said he thought there “could have been a different outcome had there not been, in my view, cheating”.
He added: “It makes me so angry, because a lot of people supported leave because they believe in the application of British law and British sovereignty. And to irrevocably alter the constitutional settlement of this country on fraud is a mutilation of the constitutional settlement of this country.”
Of course, Vote Leave has repeatedly denied allegations of collusion or deliberate overspending. When they first surfaced over the weekend, Boris Johnson, who fronted the campaign, ranted: “Vote Leave won fair and square – and legally. We are leaving the EU in a year and going global.”
Wylie, who sparked the scandal around alleged misappropriation of Facebook data by his old employer, has also said that its micro-targeting efforts were 10 times more effective that those of rival companies. However, the framing of the debate ought to include the intent that motivates the use of those methods, and the implications for democracy.
Wylie gave his evidence in a four-hour session before the digital, culture, media and sport select committee. He made a number of remarkable claims about Brexit and Cambridge Analytica, including that his predecessor, Dan Mursean, died mysteriously in a Kenyan hotel room in 2012 after a contract in the company “turned sour.”
Wylie commented that it was striking that Vote Leave and three other pro-Brexit groups – BeLeave, which targeted students; Veterans for Britain, and Northern Ireland’s Democratic Unionist party – all used the services of the little-known firm Aggregate IQ (AIQ) to help target voters online.
Cambridge Analytica have responded:
“Today the Digital, Culture, Media and Sport Committee heard false information, speculation, and completely unfounded conspiracy theories from a witness regarding Cambridge Analytica.
Chris Wylie has misrepresented himself and the company to the committee, and previously to the news media. He admits himself that what he says is speculation and therefore we feel it is important to set out the actual facts which are as follows.
Chris Wylie was a part-time contractor who left Cambridge Analytica in July 2014 and has no direct knowledge of the company’s work or practices since that date. He was at the company for less than a year, after which he was made the subject of restraining undertakings to prevent his misuse of the company’s intellectual property while attempting to set up his own rival firm. He was not, as he claims, a founder of Cambridge Analytica.
Cambridge Analytica does not hold any GSR data or any data derived from GSR data. We have never shared the GSR data with Aggregate IQ, Palantir or any other entity. Cambridge Analytica did not use any GSR data in the work that we did for the Donald J. Trump for President campaign.
Cambridge Analytica subcontracted some digital marketing and software development to Aggregate IQ in 2014 and 2015. The suggestion that Cambridge Analytica was somehow involved in any work done by Aggregate IQ in the 2016 EU referendum is entirely false.
Beyond an early-stage sales pitch to Vote Leave, Cambridge Analytica had no interaction with that group or any of their vendors. We have never had any contact with Eldon Insurance. We played no role in the UK referendum on EU membership.
We are disgusted that Mr Wylie would use the tragic death of a member of our team as a means to further his own agenda. An investigation by Kenyan authorities concluded that there was nothing suspicious about our colleague’s death, and we as a company were deeply saddened by the loss.
Cambridge Analytica has never worked with or been in contact with Black Cube in any capacity.
Attempts by Mr Wylie to link a prospective commercial pilot project, for a small number of gas stations in Turkey, with politics and Russia are absurd.
We take allegations of unethical practices in the past by our former global (non-US) political consultancy very seriously, and they are currently the subject of a full and independent investigation which we have instigated to establish the facts. Its findings will be made available in due course.
The facts above also apply to Cambridge Analytica’s affiliate companies.”
CA and affiliates are now busy trying to discredit some of their own previous claims.
CA’s political research entails “The process of collecting valuable information on voters, opposition, and trends. This provides the fullest possible picture of voter behavior”.
The company describe themselves as “the market leader in the provision of data analytics and behavioral communications for political campaigns, issue groups and commercial enterprises. With cutting-edge technology, pioneering data science, and over 25 years of experience in behavior change, CA provides advertisers with unparalleled insight into their audiences.”
The normalisation of manipulation and ‘behavioural modification’
Last year, CA were announced as a winner in the Advertising Research Foundation (ARF) 2017 David Ogilvy Awards. The company’s campaign “Make America Number One” took the Gold honor in the “big data category” for its “successful work targeting undecided voters during the 2016 presidential election.” (A pro-Trump propaganda campaign using ‘behavioural science’, which was designed from the detailed data that was held, on millions of unsuspecting US citizens). ARF have basically endorsed Cambridge Analytica’s (CA) general corporate practices of data mining and psychographic modeling.
This indicates just how normalised data mining and behavioural modification techniques have become within the PR/consultation/strategic messaging/advertising industry. As someone on the outside of the industry, it’s only possible to get a glimpse of the methods used, as the language use is kind of coded, in a context-dependent sort of way – and therefore, operates as a sort of closed system to people who don’t get the references in managementspeak acronyms and behavioural economics. Many sites don’t permit full access to information unless you are one of their members.
It struck me during Chris Wylie’s commentary about the use of “behavioural science” that his language reflected the central ideas of nudge theories, he was using words like “heuristics”, “cognitive bias” and so on. He outlined the basic premise of nudge, too – the idea that humans are fundamentally ‘irrational’. (Yet curiously, those ‘choice architects’ claiming that they know what is best for society and individual citizens are exempt from that theory).
It resonated with something I said a few years ago: that it was only a matter of time before governments started using nudge to influence citizen voting. It was pretty reasonable, as it turns out, to believe that sooner or later, we were going to see widespread manipulation of people’s decision-making, including in elections.
Back in 2016, Wired wrote an article called 25 GENIUSES WHO ARE CREATING THE FUTURE OF BUSINESS, in which it says: “Alexander Nix wants to turn mad men into psychologists. For too long, he says, demographics and purchasing behavior have been the primary guideposts of the marketing industry, used to guess what a target audience might want.
“Nix’s company, Cambridge Analytica, can provide psychological profiling to help advertisers tailor their messages to specific personality types.
“The firm groups people according to where they fall on the so-called OCEAN scale, which psychologists use to measure how open, conscientious, extroverted, agreeable, or neurotic they are. Cambridge surveyed hundreds of thousands of people across the US to generate a statistical model to predict these traits in the broader population.
“Using Cambridge’s data, marketers combine a key trait with generic demographic information and then craft a message that’s more likely to appeal to that type. So for someone who’s neurotic, the message would play to fears about a subject. Agreeable people, on the other hand, gravitate toward information about how a given product or idea will benefit society.”
Even IPSOS are now defining themselves as a ‘behavioural data group’, the head of the company, Nicolas Brézet, says, earlier this year: “Marketers seek a holistic understanding of consumers’ multi-platform digital behavior, touchpoints, activities, and content consumption. Single-source data can’t tell the whole picture, so new approaches are needed.
This presentation discusses how Ipsos combined survey data with behavioral data, found an actionable framework, and then made client recommendation. Case studies illustrate how they used their approach with five different clients.
The presentation also indicates what’s coming next: appending multiple behavioral sources to survey data for an even more holistic, unified picture that can be done today.”
So this is a research and polling company that is gathering data on citizens, including behavioural data, that
may will be used by paying clients. Details of citizens’ psychological and behavioural profiles are being sold as a commodity. To anyone who wants them, apparently.
No-one seemed to mind when David Cameron instituted the Nudge Unit back in 2010. Suddenly people were bandying about the phrase “behavioural change” casually. I was horrified precisely because of what I saw as the dire implications for democracy, back then – techniques of psychological manipulation in the hands of an authoritarian government. What could possibly go right?
Contemporary behavioural science “aims to exploit our irrationalities” since choice architects – which quickly included government ministers – view us “as manipulable subjects rather than rational agents.” Hardly anyone asked back then who was nudging the nudgers. Few questioned that the government really had our “best interests” at heart.
It’s only now that we are getting a glimpse of new behavioural economics discipline evolving into forms of social control that make the frightful 20th-century totalitarianism regimes seem like a primitive and crude method of governance by comparison. This all-pervasive control is hidden in plain view. It’s a subtle and stealthy form of totalitarianism. Someone described behavioural science and its various applications as a new “cognitive-military complex” – it originated within intelligence and state security agencies – I think that is an apt description.
The consequences of governments acting upon citizens to meet political aims, and to align behaviours with a totalising neoliberal ideology, turns democracy completely on its head. We are left with a form of inverted totalitarianism, or facade democracy, where direct methods of oppression are not required, as citizens are far easier to control and better “nudged” when they continue to believe themselves free and autonomous.
Opaque and interrelated operations
Aleksandr Kogan founded Global Science Research in 2014, after the Cambridge university’s psychology department quite properly refused to allow him to use its own pool of data for commercial purposes. The data collection that Kogan undertook independent of the university, where he worked as a lecturer, was done on behalf of a military contractor called Strategic Communication Laboratories (SCL). The company’s election division claims to use “data-driven messaging” as part of “delivering electoral success.”
The purpose of Kogan’s work was to develop an algorithm for the “national profiling capacity of American citizens” as part of SCL’s work on US elections, according to an internal document signed by an SCL employee describing the research. In 2016, In September 2016, Alexander Nix, Cambridge Analytica’s CEO, said that the company built a model based on “hundreds and hundreds of thousands of Americans” filling out personality surveys, generating a “model to predict the personality of every single adult in the United States of America.” CA, as we know, is a front for SCL.
Lynton Crosby an Jim Messina
Listening to Chris Wylie’s evidence yesterday to the parliamentary committee, I realised that many companies of this ilk (offering PR, data anaysis and segregation, strategic communications, consultancy, behavioural change and ‘conversion’) are probably fronts, shells or opaque partnerships. I researched the Conservatives’ spending on similar companies in the run-up to last year’s general election. Jim Messina, for example, set up a company called Outra, which also employs Lynton Crosby.
The company was hired by the government in the last General Election, along with Messina Inc and the CrosbyTextor Group. You have to wonder what that process is hiding. Outra were paid £120,000. Crosby Textor (listed as CTF) also earned £4,037,400 for market research/canvassing. Messina Group Inc were also paid £544,153.57 for transport, advertising, market research and canvassing. This company uses data analytics and ‘intelligence’ services. (There is a lot more research into the companies used and
The company conducts “Targeted Ads Programs [….] ensuring precise targeting via Facebook, geo-targeting, zipcodes, IP addresses, and other tactics”.
The company also says:
The Messina Group are in a ‘strategic partnership’ with Outra serving as one of Outra’s primary advisors on data, analytics, and ‘customer engagement.’
British electoral law forbids co-ordination between different campaign groups, which must all comply with strict spending limits. If they plan tactics or co-ordinate together, the organisations must share a cap on spending. (I’ve written more about what private data, communication and advertising companies the government used for their election campaign last year, and the costs here.
Wylie said yesterday: “When you work in a lot of countries, it is beneficial to have different billing names on invoices… the paperwork looks confined”. The companies share their data with each other, too. If one of those companies breaches data laws, technically, they all do, but by listing front companies with different roles, it isolates a potential problem. On the surface, that is. It’s a mafia-styled co-ordinated franchise.
Subcontracting, ‘strategic partnerships’, alliances and front companies hide the dubious processes these companies use, very well. The way the companies are set up and their interconnected relationships is deliberately confusing. The way governments present them in their expenses declarations is also purposefully opaque. Combobulate, which is listed as a management consultancy, earned £43,200 for research/canvassing and for ‘unsolicited material to electors’, yet I could not find any website for the company.
The director is listed as Nicholas Jack Walton Mason, also listed as the director of Uplifting Data. Mason is also listed as Director of Mason Investment Consultants Limited, which was dissolved via compulsory strike-off .
Wylie said: “AggregateIO was just a money laundering exercise”.
He also said: “You have to remember this is a company that’s gone around the world and undermined democratic institutions in all kinds of countries. They couldn’t care less if their work is compliant because they like to win.”
Money talks, bullshit walks. Welcome to the marketisation of democracy itself.
Wylie continued “It’s not just the data or psyops”, it’s the implications for global democracy.”
However, if it wasn’t for the data mining and psyops, democracy wouldn’t be in such peril.
From THE BAD BOYS OF BREXIT by Arron Bank, ironically, written with the help of Isabel Oakshott
When asked what Wylie thought the legal implications of a European Company processing raw data on a population at an ISP level were, he basically said that it would be a breech of data protection and privacy laws. Privacy and data protection are part of the Charter of Fundamental Rights in Europe. Being established in Delaware does not exempt you from Data Protection. If Data is processed in Europe then data protection and privacy laws apply.
Wylie also links SCL to the Home Office Prevent Programme. I bet my entire collection of ‘Behaviourism, theory, practice and how to cover your tracks’ and ‘How tyrants misuse psychology’ that they will be linked to other many Conservative policy programmes too.
You can watch the full parliament evidence session here.
The video below shows a series of some of the key moments.
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A lot has been written in recent years about the value of Behavioural Economics in nudging the Electorate to do make good choices. A lot less has been achieved in the area of nudging politicians. Politicians are pivotal in society and nudging them will have far greater impact on society than piecemeal and dissipated nudging of Citizens. Indeed the nudging of politicians is not only the most rational and efficient way to achieve positive outcomes for society but also ensure that both politicians and Electorate are of one mind when it comes to being “all in it together”.
The Choice Architecture of Parliament has, for centuries, favoured unaccountable and poor decision-making in isolation from the actual needs and wants of the Electorate. Indeed, women only acquired the right to vote in 1918, voting only became one person one vote in 1948 and the franchise has only been extended to 18 year olds since 1969, in the United Kingdom. Democratic participation has never been the primary aim of Parliament, for reasons that can be understood through a consideration of Behavioural Economics: Parliament is about the allocation and distribution of Power.
Reducing the tyranny of choice.
The sheer number of choices available to politicians is a tyranny.
From expenses for underpants to abstaining from critical votes, the sheer amount of time and energy devoted to Politicians’ choices diminishes political utility. The Electorate can become the Choice Architects of Parliament by democratically limiting alternatives and providing decision support tools.
Traditionally, Parliament has excluded the Electorate from many Parliamentary processes. Indeed with around thirty-five million eligible voters, Parliament can only function by being efficient. The true scale of the tyranny of choice can be expressed, mathematically, and this gives the Choice Architects of Parliament powerful tools to determine how efficient Politicians are being. The exclusion of the Electorate from some Parliamentary processes and admission into others can end the moral hazard and confirmation biases inherent in a closed decision-making group.
Queueing theory has its origins in research by Agner Krarup Erlang when he created models to describe the Copenhagen telephone exchange and has provided such important results as the Queueing Rule Of Thumb, which can be used to determine how many Politicians are required and if a Politician is efficiently making choices. This reduction of the tyranny of choices only begins the radical reform of Parliament by transforming Politicians into fit for purpose Decision Makers whose optimisation of resources for the Electorate is a Public Good. Identifying which Politicians are failing the Electorate in aggregate becomes a simple task of a well designed Randomised Control Trial.
A large body of research has shown that, paribus ceteris, Politician are people and choose options that are presented as a default.
The Choice Architects of Parliament will create the defaults of deselection and prosecution for Politicians cause harm to the Electorate. The Precautionary Principle, applied to Legislators will ensure the best choices are available to Parliament at all times.
Historically, the defaults presented to Politicians have been those defaults prepared by Think Tanks, Lobbyists, Consultants and the Civil Service. While there is nothing undemocratic about seeking the advice of Experts, the pool of expertise has diminished in recent years until it has, largely, become an unnecessary barrier to efficiency and a source of largesse for rewarding anchoring biases and bandwagon effects. Fundamentally the Choice Architects of Parliament will minimise the framing effect of these expert consultations which can result in failure by default as the direct outcome of the Dunning-Kruger Effect discovered in a range of notionally independent Think Tanks, Lobbyists and Consultants.
In contrast to genuinely principle based policies, Politicians have come to rely on the self-assembly policies, for which consultations provides defaults and instructions, in the same way that people value furniture that they have assembled themselves. Research has shown that people value a book shelf more if they assemble it themselves than if it is already assembled. The Political Pareidolia of Consultation Defaults will be ended by the Choice Architects of Parliament by evidence based defaults for Politicians.
A simple and enduring evidence based default for Politicians is to be recalled from office should they choose a default purely because it is a default. In evidence based policy, default policies can be randomised in order to ensure that Politicians are not simply choosing the first option on the list. Research at the Department of Work and Pensions has demonstrated that Claimants understand and appreciate the value of sanctions in making good choices and there is no evidence that Politicians are not the same as Claimants. The Sanction Regime will be the Primary Default for Politicians in Policy Formation and no secret will be made of that; because, then, Politicians can make the right and informed choice and, importantly, feed back those choices to Think Tanks, Lobbyists, Consultants and the Civil Service with appropriate behaviours.
Choice over time
Choices where outcomes manifest in the future are influenced by several biases.
Politicians tend to be myopic, preferring present opinion poll or ideological outcomes at the expense of future concrete outcomes for the Electorate. This leads over exploitation of present day resources at the expense of the future. Political projections about the future tend to be inaccurate with uncertainty promoting overestimation of the likelihood of positive outcomes for vanity projects.
The Choice Architects of Parliament have several ways to structure choice architecture to compensate for or reduce these ideological and opinion poll biases. Where Politicians have an uncertain future, they are motivated to overestimate the likelihood of salient or desirable outcomes and the resulting poor choices cascade outwards into the Electorate with consequences that are, generally, unforseen by the Politician. By making all Political Choices by a politician contribute to the future wellbeing of the Politician, Policy will be driven to improve.
The default Sanction Regime is only functionally effective if the Sanctions escalate over time. The current Sanction Regime for Politicians consists of not being elected at the next General Election. There are rare occasions when a Politician resigns inducing a by-election. This is not a Sanction in the same way as a General Election as it is controlled by the Politician. Similarly, being Suspended from the House is a Sanction under the control of the Speaker.
Partitioning options and attributes
The ways in which options and attributes are grouped influence the choices that are made.
Option partitioning requires division of a budget into categories. The attributes of a category are clumped or divided according to Government Department and Ideology. Politicians have a tendency to claim resources are scarce and allocated equally across categories. By itemising ideologically acceptable attributes and aggregating ideologically undesirable attributes, Politicians managed consumption by managing the number of attributes into types of categorizations.
The Choice Architects of Parliament will undertake a root and branch review of ideological choices and manage Political expectations by recalling Politicians where their ideological categories do not match those of the Electorate. The choice tools available to Politicians will cease to be limited to those provided by Lobbyists and Think Tanks.
Indeed each Individual Lobbyist and Think Tank will cease to be treated as an attribute of Political Life in Parliament and become a Category within the Register of Members’ Interests. Similarly, each Elector will become a Category for each “Elected Representative”. This will ensure that Politicians allocate the scare resources of their time equally across Electorate and Special Interests. The consumption of Lobbying can, therefore, be managed by the Choice Architects of Parliament.
Avoiding attribute overload
Politicians would optimally consider all of a Policy’s attributes when deciding between options. Cognitive constraints, result in weighing attributes in the same way as choices. As a result, The Choice Architects of Parliament will choose to limit the number of attributes of a policy, weighing the cognitive effort required to consider multiple attributes against the value of improved Governance. In order to ensuring cognitive attribute overload does not occur, the number of Politicians will be increased by reducing the size of Constituencies. Thus Politicians will be both more accountable and less prone to attribute overload.
This presents challenges if Politicians ideologically commit to different attributes to the Electorate and so the Choice Architects of Parliament provide tools for sorting, informing and recalling Politicians. The principal means of avoiding attribute overload will become the Political Capability Assessment. Rather than belabouring the difficulties of partitioning attributes and categories, Politicians will be periodically assessed for their suitability by Political Activity Practitioners selected from the General Electorate.
The presentation of information about attributes reduces the cognitive effort associated with representation and so reduces the failure of Politicians to do as the Electorate instructs. The Choice Architects of Parliament will accomplished this by increasing evaluability and comparability of attributes. The Choice Architects of Parliament will convert commonly used metrics into metrics Politicians are assumed to care about. Such as “Expenses per Majority” and “Lobbyists per Day”. Non-linear metrics will be transformed into linear metrics and evaluative labels will be added to numerical metrics, explicitly calculating consequences such as “Swing to deselection” and “probability of prison”.
The Choice Architects of Parliament
For too long, Politicians have avoided the reality of their situation. In particular, the finances of Parliamentary Politicians has been allowed to drift along making poor choices with poor consequences for Constituents.With the advent of Behavioural Economics it has become clear that something must be done to curb the poor choices of politicians.
Imagine how much easier it would be for a Minister to refrain from sending an aide out to purchase sex aids if all purchases of goods or services by all Politicians were restricted to the use of a Parliamentary Credit Card. By having a Parliamentary Credit Card updating a database in real time, Politicians can make good purchasing decisions and demonstrate their accountability in real time. The Independent Parliamentary Standards Authority would transform from being a bureaucratic nightmare into being a modern and efficient Politicians’ Financial Services Organisation.
Paperwork would be eliminated as transactions would automatically register and enter the public domain through the Independent Parliamentary Standards Authority Website. The Independent Parliamentary Standards Authority showing approval or rejection of expense items giving feedback to the Electorate in real time. Rejected items could be annotated quickly to ensure Politicians understand the consequences of their choices.
Politicians have always been accused of using the ambiguity of Parliamentary and Constituency Homes as a source of income. The difficulty of maintaining two dwellings is a common one that can result in suboptimal resource allocation. The resulting problem of spare rooms has been solved for a range of Benefits Claimants by adjusting the level of support available. The same principle, applied to Politicians, has a simple and elegant solution which helps them to avoid attribute overload – both in their own accommodation and in policy formation.
By housing Politicians in the Tower Blocks in and around the precincts of Parliament, the suboptimal resource allocation of resources to accommodation vanishes and Politicians are motivated to ensure the highest standards for accommodation within the constraints provided by the Tenant Management Organisation. By ensuring the Tenant Management Organisation is responsible for providing Tower Block Housing within Local Authority constraints, Politicians can both choose to relieve themselves of poor choices about maintenance and provide a pathfinder for excellence in housing choices over time.
While expenses and housing are major concerns, the single most important behaviour Politicians engage in is voting in Parliament. Poor voting decisions have serious, long-term outcomes that adversely affect the Electorate. Politicians who have expectations that decisions made in the first year of office will not have an effect in the fifth year of office experience no loss aversion. By following the Precautionary Principle, Politician who make poor voting decisions would have their term of office shortened thus bringing the date of their next election forwards. Sufficient poor voting decisions would trigger an early General Election. This ensures Party Whips are given the opportunity to avoid loss though an early election with motivation to ensure Politicians make good decisions at all stages of a Parliament.
The danger of applying a time tariff to voting decisions is that Politicians will attempt to game the system with poor decisions. In order to ensure Politicians are as motivated as their Party to make good decisions, Randomised Control Trials will be run against each and every vote in Parliament. Politicians are randomly matched against a representative sample of voters from their Constituency and their actual vote. Politicians who are so selected will be obliged to discuss their decision-making during a Political Capability Assessment.
In order to ensure that the Political Capability Assessment is fair and realistic, the Political Activity Practitioners will be selected from the General Electorate and Expertise will be excluded in order to ensure avoidance of The Political Pareidolia of Consultation Defaults. In line with the practices of the Work Capability Assessment process, there will be a rejection rate for all assessments. The rejection rate will be evidenced based on the number of people who voted against the Politician at the last election. The ordeal of appealing against the Political Capability Assessment will focus Politicians on making better decisions and becomes a necessary part of political life.
The Choice Architects of Parliament are in their early days and have little, if any, concrete proposals developed to the state of implementation. Randomised Control Trials have a role to play in the selection and election of Politicians prior to any Parliament. Not only are Politicians going to be more efficient and effective at making decisions they will be making better decisions. The kind of decisions that they can be responsible for. Because they will be held to be responsible and that means there will be consequences for all they do.
Article by Hubert Huzzah.
Picture: George Grosz and John Heartfield: “Jederman sein eigner Fussball”, 1919.
“The point for neoliberalism is not to make a model that is more adequate to the real world, but to make the real world more adequate to its model” – Simon Clarke (2005). (See also If You Look Behind Neoliberal Economists, You’ll Discover the Rich: How Economic Theories Serve Big Business. The road to serfdom – sponsored by big business).
Nudge: when the luxury of making choices has been commodified and packaged
Choice architecture is a term was coined by libertarian paternalists Richard Thaler and Cass Sunstein (2008). It refers to the practice of influencing choice by changing the manner in which options are presented to people.
Choice architecture influences decision-making by simplifying the presentation of choices, by automatically evoking particular associations, or by making one option more salient or “easier” to choose than the alternatives. It works “beneath” our rational and reflective processes.
Personally, I see choice architecture as starkly lit Orwellian features along the short road and cul-de-sac to choiceless choices. It’s a reductive and determined journey, which ends by the state deciding and determining how citizens ought to be.
A government that is acting upon the perceptions and behaviours of citizens in order to align them with politically defined socioeconomic outcomes turns democracy on its head. It detaches public policies from genuine wider public needs and interests. Governments are elected in the expectation that they will behave in ways that meet the needs of a population.
Democracy entails a dialogue between government and citizens. However, nudge closes down that dialogue, and restricts human agency – the capacity of individuals to act independently and to make their own free choices. Policies are increasingly about the government instructing us how to behave. How to be.
Choice architecture redesigns our experiences without our consent. Diversion from the path of those choices chosen for us by choice architects is considered to be pathological. Nudge doesn’t accommodate creative opportunity, critical thinking or any form of genuine learning. It simply claims that we each operate within the confines of bounded rationality. We are cognitively flawed. But nudge doesn’t present the opportunity for citizens to develop awareness of potential limits, to problem-solve or to learn how to become better cognitively equipped.
It’s precisely because we are ALL cognitively flawed that the production of knowledge for governance itself needs be governed. In this respect, behavioural econmics displays an arrogance and epistemoloical authoritarianism in that it is assumed the theories it’s founded on somehow escape the confines of rational boundaries that everyone else is unable to transcend. It’s like saying “that’s your “human nature”, but not ours”. If we are all cognitively flawed, then no-one is exempt from that rule.
Nudge reduces our experiences to measured, measurable, politically defned quantitative “outcomes”, at the expense of the crucial qualitative accounts and participation of citizens that contribute to a functioning democracy.
Thaler and Sunstein define a “nudge” as:
“Any aspect of the choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their economic incentives.”
This statement puzzles me. If a behaviour is altered in a predictable way, then how will we know if any of the other potential options were forbidden or not, and surely, it means at the very least that the other possibilities – alternative choices – have been foreclosed intentionally by the choice architect. If it didn’t mean that, then why use nudge at all, how exactly does nudging work, and why are we funding it?
Libertarian paternalism or “nudging” is a mechanism to exploit the ways that individuals deviate from rational choice in order to benefit themselves or society at large – for instance, by using our bias toward the status quo to encourage employees to put more of their paychecks into savings.
This benefits employees because it means they will be able to afford to live when they hit hard times, as state provision such as unemployment support and pensions have been incrementally cut away to almost nothing. The powers that be in the UK regard any kind of welfare provision as a “perverse incentive”. This benefits the government because if everyone pays for their own pension, periods of unemployment, sickness and so on, then the government can spend your national insurance contributions and taxes on other things. Like very wealthy people’s tax cuts.
The privatisation of choice and consent
Power is defined in the social sciences as the ability to influence (“soft power”) or shape and outright control the behaviour of people (“hard power”). Attempts by a government to shape and control the behaviour of citizens (including the targeting of specific social groups), either via policies or by brute force, isn’t generally considered to be compatible with democracy, social justice or notions of inclusion.
Thaler and Sunstein have claimed that governments always influence citizens’ behaviours. We have laws to deter clearly defined crimes such as murder, theft and so on. However, those laws are clearly stated and citizens are aware of their purpose and that they aim to control socially harmful behaviours. They are transparent. Most people would agree that they are necessary to protect citizens, and most are aware of the probable consequences of being found breaking those laws.
These are overt attempts to dissuade people from behaving in potentially harmful ways towards others and wider society generally tends to endorse them, regarding them as necessary. Such laws permit us to engage our rational processes precisely because they are visible to us. Nudge is designed to bypass our critical and rational capacities.
Nudge or “behavioural economics” is the attempt to shape people’s socioeconomic behaviours without people being aware of the process or the aim. Nudge ceases to work when people become aware that they are being nudged – it only works “in the dark”.
The Nudge Unit was part-privatised in 2014, which means it is protected from public scrutiny. It is no longer subject to the Freedom of Information Act, and it can sue for libel.
Ian Dunt said at the time of the Nudge Unit’s privatisation: “The secrecy and legal might of private firms offering public services is morally indefensible whatever the sector. But in the case of nudge it is particularly dangerous, because this is an organisation specifically tasked with implementing policy on the subconscious of the British public.
However sympathetic we are to the goals nudge is trying to achieve – such as reducing car accidents or increasing tax collection – we should be deeply sceptical of its tactics, which involve influencing the public without them knowing it is happening.
This is what makes nudge so toxic an idea. While it seems more liberal than using legislation to clamp down on unhealthy behaviour, it is actually more pernicious. At least when something is banned, you know you are being prevented from doing it. With nudge, you will never know.”
The application of nudge tends to be asymmetrical – is targeted disproportionately at poor citizens. This is because of the political belief – a weighted bias – that poor people are poor because they make “irrational” and “wrong” choice. Conversly, wealthy people are deemed “rational” precisely because they are wealthy. This is a line of teleological reasoning – rather than being causal explanation of the phenomenon of inequality, the aims, ends, or intentions of the observed phenomenon or behaviour are used to explain the process. Teleology refers to a view that justifies certain phenomena, which are explained by reference to their purposes. The Conservatives see inequality as functional, because it “encourages competition” and serves as an “incentive”. Social scientific arguments among positivists in particular quite often rest on rational short cuts like this. This short cut is a weighted bias that becomes embedded in the process of how particular areas of research are chosen, how the research is designed, and how interpretation of the results and conclusions are framed. Rather than the “scientific method” in social research serving to ensure value neutrality, quite often it simply distils the ideological premises of it.
Nudge reduces a persons’ choices to one choice – that of the state or “choice architects”. Nudge tends to draw on punishments, threats of punishment and negative reinforcements to change the behaviours of poor people – such as those embedded in welfare conditionality and sanctions, which exploit a cognitive bias we have, apparently, called “loss aversion”.
Something that the government and libertarian paternalists choose to ignore is that it is poverty itself that restricts choices, not poor people’s cognitive “abilities” or decision-making. A good example is how the use of credit scoring ultimately leads to the poorest people having to pay the most interest on credit, if they manage to get any at all. Being poor limits our choices for credit, and other ways out of financial hardship. It’s difficult to find work that pays an adequate wage to support an adequate standard of living, especially when you have so few resources that you can’t meet all of your basic needs, let alone pay your broadband bill and meet travel costs.
It’s a very dangerously slippery slope when a group of technocrats claim they have perfected the art of knowing what is best for us, and what our best interests are, especially when it is especially geared towards the political goal of fulfilling “small state” ideology.
Psychopaths see others as a means to an end, they also like to define other people’s “best interests”. They use justification narratives for their behaviours to manipulate people, which are often plausible, but ultimately, this is simply to get their own way.
Similarly, the Conservatives’ use of nudge reflects their ideological agenda, and their justification narratives reflect an authoritarian turn.
The rise of nudge refects a miserly neoliberal government with an ideological agenda
If people who are poor are struggling with decision-making, then nudging people – even if “opt out” provision is made (and it generally isn’t) – without their knowledge or informed consent cannot be justified as a “non intrusive” intervention, as behavioural economists try to argue. Nudging reduces our autonomy and imposes a framework of psychological reductionism and determinism.
Nudge reflects a basic “stimulus-response” view of human shaping behaviour, except the word “incentive” has replaced “stimulus” in the old behaviourist terminology. Many behavioural economists talk about cognitive processes, and how flawed most people’s are. But nudge methodology reflects a behaviourist approach – there’s no opportunity for learning, and no consideration of human subjectivity – our inner states, meanings, understandings and so on – all that matters is getting people to comply and behave the way the “choice architects” think we should. Cause and effect.
Nudge was introduced as a policy strategy as a way of cutting costs. Libertarian paternalism is a political doctrine, and is therefore not value-neutral. However, libertarian paternalists argue that their methodology – Randomised Controlled Trials (RTCs) – validates their claim to value neutrality. Behavioural economists argue that the evidence gathered from RTCs is a better, more reliable and valid form of knowledge than the knowledge of “experts”. But such knowledge is insufficient if it is abstracted from the political side of policymaking in which problems are framed and knowledge given meaning. Furthermore, the RTCs are used to add credibility to the theoretical knowledge of “experts”. But often, those presenting a case for evidence-based policies often ignore the multiplicity of evidence relevant to the policy in question. In this respect, RTCs may be used to filter out alternative accounts of the issue being addressed, and so justifying interventions that are inappropriate or may have unintended (or undeclared and ideologically determined, intended) consequences.
RTCs are an effective way of determining whether or not a particular intervention has been successful at achieving a specific outcome. One significant concern is that RCTs are being promoted as the ‘gold standard’ in a hierarchy of evidence that marginalises qualitative research, and the accounts of citizens’ experiences – crucial to a functioning democracy. The government has frequently dismissed citizens accounts of policy impacts as “anecdotal”, claiming that “no causal link” between policy and impact can be demonstrated. Given that some of these accounts have been first hand, and about serious harm caused by policy, it’s easy to see how the use of a”scientific methodology” so easily becomes a tool for stifling criticism, debate and a mechanism for political expediency.
RTCs have been the standard of medical research, and are useful for establishing whether cause-effect relationships exist between treatments and outcomes and for assessing the cost effectiveness of a treatment. However, their use in influencing and quantifying an array of complex human behaviours marks a return of the determinism and reductionism that was central to behaviourist perspectives.
We must also question the appropriateness of the use of a medical model to frame social problems. Poverty, inequality and the unequal distribution of power doesn’t happen because of some disease process: it is because of government policy and decision-making. No amount of blaming individual citizens’ decision-making and applying “behavioural medicine” to the victims of free neoliberal socioeconomics will remedy that.
Behaviourism is basically the theory that human and animal behaviour can be explained in terms of conditioning, without appeal to “internal” states -thoughts or feelings – and that psychological disorders are best treated “externally” by altering “faulty” behaviour patterns. Because nudge is used asymmetrically, and targets poor people disproportionately, it is founded on assumptions that reflect traditional prejudices and assumptions about the causes of poverty, and also serves to endorse and extend existing inequalities in wealth, resources and power. Nudge assummes that poor people’s decision-making is the cause of poverty, rather than institutionalised prejudices and the political decision-making that shapes our socioeconomic environment.
One of our fundamental freedoms as human beings is that of decision-making regarding our own lives and experiences. To be responsible for our own thoughts, reflections, intentions and actions is generally felt to be an essential part of what it means to be human.
Of course there are social and legal constraints on some intentions and actions, especially those that may result in harming others, and quite rightly so.
There are other constraints which limit choices, too, insofar that choices are context-bound. We don’t act in an infinite space of opportunities, alternatives, time, information, nor do we have limitless cognitive abilities, for example.
In other words, there are always some limitations on what we can choose to do, and we are further limited because our rationality is bounded. Most people accept this with few problems, because we are still left ultimately with the liberty to operate within those outlined parameters, some of which may be extended to a degree – our capacity for rationality and critical thinking, for example, can be learned and improved upon. But our thoughts, reflections, decisions and actions are our own, held within the realm of our own individual, unique experiences.
However, the government, and the group of behavioural economists and “decision-making psychologists” (employed at the “Nudge” Unit) claim to have found a “practical” and (somehow) “objective way” from the (impossible) perspective of an “outside observer” – in this case, the government – to define our best interests and to prompt us to act in ways that conform to their views. Without our informed consent. “Compliance” is the defintely the governments’ buzzword. Compliance frameworks are embedded in our welfare system and most of our public services.
Sunstein and Thaler argue that policymakers can preserve an individual’s liberty while still nudging a person towards choices that are supposedly in their best interests. However, since no-one can escape their bounds of their own subjectivity to find some mind-independent vantage point, and since all humans operate within a framework of bounded rationality, the behavioural economists’ claim to value-neutrality, and technocratic appeal to the validity of a “scientific” methodology doesn’t stand up to scrutiny.
The claim to an “objective” scientific methodology does nothing to compensate for the ideological perspectives of the researcher that invariably influence the choice of an area of study, or the nature of generated hypotheses that are tested in artificial environments – “laboratory” conditions. Isolated, tested, short-range hypotheses cannot tell us much about the vast array of complex processes involved in human decision-making, and take any meaningful account of the influence and depth of a cultural, political, social, economic and historical context. As such, they cannot provide a reliable basis for making inferences to real world circumstances.
The results depend on the interpretation and nature of the data used and the reason for the analysis in the first place. Simple causal explanations of behaviour embody reductionism and determinism – and therefore deny human autonomy. Bounded rationality is a theory that proposes we have limited choices, but behaviourist perspectives inform us that basically, we have none.
Nudge doesn’t take into account that political decision-making also succumbs to the limits of bounded rationality, and that socioeconomic policies impact upon citizens, rather than citizens making choices – “right” or “wrong” ones – about our socioeconomic organisation.
Medical RCTs are done within the confine a strict ethical framework, with informed consent being central to that framework. The government is conducting experiments on the population without their informed consent. There are no ethical safeguards in place to monitor and acknowledge any potential harm that arises as a consequence of nudging. This is precisely why there is a need to incorporate qualitative insights into RTCs used to test pubic policy interventions.
Nudge ignores the negative impact of the attitudes and behaviours of the wealthy and powerful on society
“People who are poorer should be prepared to take the biggest risks; they’ve got least to lose.” Lord Freud, 2012
The risk-taking and greedy behaviours of wealthy people caused a global financial crash, which has ultimately led to countries like the UK imposing austerity on the poorest citizens. Excess in risk taking by and excessive leverage of banks meant that the finance class ignored externalities and relied on bail-outs by the government following the crisis.
The incentive structure of banks encouraged strategies that increased aggregate risk in the economy, and regulators allowed banks to use their own models to calculate and report riskiness. Deregulation is at the core of the 2008 Financial Crisis. The attempt to decrease government involvement in the financial system backfired. Ultimately, deregulation put depositors, consumers, and banks at risk. Those paying the price for the decision-making behaviours of those in positions of power are the poorest citizens. Austerity has been used as a diversion from where the responsibility for the banking crisis lies, and has become a mechanism of administering disipline and ensuring the conformity of the poorest citizens.
Yet their remains a widespread lack of concern for the financial system’s risk to the economy. No lessons appear to have been learned, and no-one is concerned with “changing the behaviours” of the perpetrators of the global recession.
“If we must talk about “poor choices” then we have to address all poor choices. Not just those “poor choices made by the Poor.” Hubert Huzzah
Austerity measures have caused an unacceptable level of harm, hardship and absolute poverty – lacking the means to meet basic survival needs, such as food, fuel and shelter – that we haven’t witnessed as a society since before the establishment of the post-war welfare state. We have also witnessed the violation of the human rights of some socially marginalised groups. This point indicates to me that it isn’t poor people who need “behaviour change” programmes: it’s the rich and powerful who create adverse or “pathological” socioeconomic circumstances and events
“Nudge” bears the hallmark of oppression and is symptom of an authoritarian state. It permits those whose decisions have truly devastating impacts on others and our society to simply carry on doing as they choose, whilst punishing those who are blameless, powerless and don’t participate in decisions regarding how our society is organised.
As such, nudge has become a prop for neoliberal hegemony and New Right Conservative ideology. It’s a technocratic fix to a socioeconomic system that is not only failing, it’s causing distress and harming many citizens.
Nudge addresses the needs of policy-makers. Not the wider public. The behaviourist educational function, made patronisingly explicit by the Nudge Unit, is now operating on many levels, including through policy programmes, institutionalised attitudes and behaviours, in schools, in forms of “expertise”, and even through the state’s influence on the mass media, other cultural systems and at a subliminal level: it’s embedded in the very language that is being used in political narrative.
Thaler acknowledges that regardless of the original intentions, nudge may be skewed by governments, organisations or individuals looking to capitalise on the cognitive biases of people. Whenever he is asked to sign a copy of his book , he writes “nudge for good” which is a plea, he says, to improve the lives of people and avoid “insidious behaviour.”
In the UK, choice architects work to simply maintain the status quo. Therefore nudge doesn’t and cannot offer us any scope for improving people’s lives.
Grenfell is a stark monument to the systematic disempowerment of citizens because of the decisions made by the architects of neoliberal policies and the utter disregard and negligence of those in positions of power.
Residents of Grenfell Tower had previously raised serious concerns that a catastrophic event could happen. It did. An action group of Grenfell residents said their warnings fell on “deaf ears” after highlighting major safety concerns about the block. The neoliberalisation of the housing market entailed councils part-privatising public housing – putting them into housing associations or ALMOs (arms length management organisations). This management arrangement was distant and remote – a bureaucratic mechanism rather than a democratic community organisation.
Austerity was (re)introduced in 2010. Public and social housing budgets were slashed and housing associations encouraged to become more commercial and borrow from banks instead of receiving public funding. At the same time, social security and funding for local government were dramatically cut back. In London alone, 10 fire stations, 27 fire engines and more than 600 firefighters have been lost to cuts since 2010. These undermined emergency responses and efforts to prevent fires by inspecting buildings and taking enforcement action under fire safety regulations.
Government hostility to regulation played a significant role in the unfolding of this terrible tragedy. Following a smaller fatal 2009 fire in South London, a series of recommendations including installing sprinkler systems and reviewing the “stay put” advice given to residents living in higher floors in the event of a fire. These recommendations were sat on, ignored, and delayed despite efforts from parliamentarians and campaigners, and even the magazine representing housing professionals. The requirement to carry out a Fire Risk Safety Assessment by the Fire Brigade was changed to make it the responsibility of landlords – Kensington and Chelsea Council opted to use the cheapest company available to them.
These assessments are not transparent or public and are now the subject of huge public scrutiny along with the series of decisions that led to Grenfell Tower being “re-clad” in the cheap material that facilitated the rapid spread of the fire.
What is clear is that government decision-making, the ideology of deregulation, of privatising, of austerity, combined to kill people in their homes. Their safety and their lives were not valued by the government nor the system they put in place, nor were their voices heard until it was far too late.
If we must talk about “poor choices” then we must address all poor choices. Not just those “poor choices” made by the poorest and most disempowered citizens.
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Sherry Arnstein’s Ladder of Citizen Participation and Power
I’m currently writing a longer and more in-depth critique of behavioural economics, which will be published very soon.
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Some context: the new neuroliberalism and “behavioural insights”
The behaviourist turn in government administration – the use of targeted citizen behavioural conditionality in neoliberal policy making – has expanded globally and is linked to the growth of behavioural economics theory (“nudge”) and a New Right brand of “libertarian paternalism.”
Reconstructing citizenship as highly conditional stands in sharp contrast to democratic principles, rights-based policies and to those policies based on prior financial contribution, as underpinned in the social insurance and social security frameworks that arose from the post-war settlement.
The fact that the poorest citizens are being targeted with behavioural theory-based interventions also indicates discriminatory policy, which reflects traditional Conservative class-based prejudices. It’s an authoritarian approach to poverty which simply strengthens existing power hierarchies, rather than addressing the unequal distribution of power and wealth in the UK.
Some of us have dubbed this trend neuroliberalism because it serves as a justification for enforcing politically defined neoliberal outcomes. A hierarchical socioeconomic organisation is being shaped by increasingly authoritarian policies, placing the responsibility for growing inequality and poverty on individuals, side-stepping the traditional (and very real) political/structural explanations of social and economic problems.
Such a behavioural approach to poverty also adds a dimension of cognitive prejudice which serves to reinforce and established power relations and inequality. It is assumed that those with power and wealth have cognitive competence and know which specific behaviours and decisions are best for poor citizens, who are assumed to lack cognitive competence (because they are poor and therefore make “the wrong decisions”). Apparently the theories and insights of cognitive bias don’t apply to the theorists applying them to increasingly marginalised social groups. Policy has increasingly extended a neoliberal cognitive competence and decision-making hierarchy.
It’s very interesting that the Behavioural Insights Team now claim that the state using the threat of benefit sanctions may be “counterproductive”. The idea of increasing welfare conditionality and enlarging the scope and increasing the frequency of benefit sanctions originated from the behavioural economics theories of the Nudge Unit in the first place.
The increased use and rising severity of benefit sanctions became an integrated part of welfare conditionality in the Conservative’s Welfare “reform” Act, 2012. The current sanction regime is based on a principle borrowed from behavioural economics theory – an alleged cognitive bias we have called loss aversion.
It refers to the idea that people’s tendency is to strongly prefer avoiding losses to acquiring gains. The idea is embedded in the use of sanctions to “nudge” people towards compliance with welfare rules of conditionality, by using a threat of punitive financial loss, since the longstanding, underpinning Conservative assumption is that people are unemployed because of alleged behavioural deficits and poor decision-making. Hence the need for policies that “rectify” behaviour.
I’ve argued elsewhere, however, that benefit sanctions are more closely aligned with operant conditioning (behaviourism) than libertarian paternalism, since sanctions are a severe punishment intended to modify behaviour and restrict choices to that of compliance and conformity or destitution. At the very least this approach indicates a slippery slope from “arranging choice architecture” in order to support the “right” decisions that are felt to benefit people, to downright punitive and coercive policies that entail psycho-compulsion, such as sanctioning and mandatory workfare.
Psychology is being misused by the government to explain unemployment (it’s claimed to happen because people have the “wrong attitude” for work) and as a means to achieve the “right” attitude for job readiness. Psycho-compulsion is the imposition of often pseudo-psychological explanations of unemployment and justifications of mandatory activities which are aimed at changing presumed beliefs, attitudes and dispositions. The Behavioural Insights Team have previously propped up this approach.
Welfare conditionality and its experimental approach to behavioural change doesn’t operate within an ethical framework, citizens cannot withdraw from behavioural experiments, nor is this framework based on informed consent. The impact of state directed psycho-compulsion and potential harm that it may cause citizens is not being monitored.
The Behavioural Insights Team (BIT) is composed of mostly behavioural economists, who also claim the title of libertarian paternalists (and who have a clear and distinct ideological premise for their behavioural theories, while attempting to claim “objectivity”.)
They claim that while it is legitimate for government, private and public institutions to affect behaviour the aims should be to ensure that “people should be free to opt out of specified arrangements if they choose to do so.” Apparently, that proviso doesn’t apply to poor citizens.
The nudges favoured by libertarian paternalists are also supposed to be “unobtrusive.” That clearly is not the case with the application of extremely coercive and punitive Conservative welfare sanctions.
When it comes to technocratic fads like nudge, it’s worth bearing in mind that truth and ethics quite often have an inversely proportional relationship with the profit motive. It’s a cognitive bias, if you will.
And when one nudge theory fails, there are always lucrative and political opportunities to generate more.
Of course Dr Kizzy Gandy, a leading researcher at the policy unit says: “We are optimistic that behavioural science can help government departments to better design policies to help those who are ‘just managing’ in order to prevent and overcome poverty.”
In a new report released today from the Behavioural Insights Team, the authors say: “There is evidence that welfare conditionality in the UK – mandatory behavior requirements such as attending meetings with work coaches or providing repeated evidence of disability in order to receive benefits – is associated with anxiety and feelings of disempowerment.”
“However, as far as we know no one has examined whether welfare conditionality has cognitive depleting effects.”
It’s particularly worrying that there is a proposal in the report for further experimental pseudo-psychological approaches to policies aimed at the poorest citizens. The researchers call on the Department for Work and Pensions to conduct experiments into whether welfare conditionality actually had any positive effects and suggested that “self-set” and “enforced goals” might be a better way of “helping people into work.” Although this allows for a little tokenist self-determination and permits a little autonomy, it is still an approach ultimately based on coercion and enforcement.
There is a clear distinction to be made between “behavioural science” – which is almost entirely about economic outcomes; what is politically deemed “best” for citizens and social conformity, and mainstream psychology – which embraces a much broader and deeper perspective of the complexities of human potential and wellbeing.
For anyone curious as to how such tyrannical behaviour modification techniques like benefit sanctions arose from the bland language, inane, managementspeak acronyms and pseudo-scientific framework of “paternal libertarianism” – nudge – here is an interesting read: Employing BELIEF: Applying behavioural economics to welfare to work, which is focused almost exclusively on New Right small state obsessions.
(Update 27/10/17 – the link to the original document no longer works. But I found a copy with the same page layout here, luckily: – https://www2.learningandwork.org.uk/sites/default/files/publications/CESI_employing_BELIEF.pdf).
Pay particular attention to the part about the alleged cognitive bias called loss aversion, on page 7.
And this on page 18: “The most obvious policy implication arising from loss aversion is that if policy-makers can clearly convey the losses that certain behaviour will incur, it may encourage people not to do it,” and page 46: “Given that, for most people, losses are more important than comparable gains, it is important that potential losses are defined and made explicit to jobseekers (e.g.the sanctions regime).”
The recommendation on that page: “We believe the regime is currently too complex and, despite people’s tendency towards loss aversion, the lack of clarity around the sanctions regime can make it ineffective. Complexity prevents claimants from fully appreciating the financial losses they face if they do not comply with the conditions of their benefit.”
The Conservatives duly “simplified” sanctions by extending them in terms of severity and increasing the frequency of use. Sanctions have also been extended to include previously protected social groups, such as lone parents, sick and disabled people.
The paper was written in November 2010, prior to the Coalition policy of increased “conditionality” and the extended sanctions element of the Tory-led welfare “reforms” in 2012. I wrote about this at length earlier this year, here: Nudging conformity and benefit sanctions: a state experiment in behaviour modification.
The Behavioural Insights Team, (otherwise known as the Nudge Unit) was set up by David Cameron in 2010. In their most recent report called Poverty and decision-making: How behavioural science can improve opportunity in the UK, the nudge researchers now say that burdening unemployed people with responsibilities, using the threat of sanctions might actually be making it harder for them to get jobs.
According to the behavioural economist theorists authoring this highly jargonised report, government policies designed to help people are reducing and impairing people’s so-called cognitive scope and abilities.
However, it’s difficult to imagine how punitive sanctioning, which entails the removal of people’s lifeline income, originally calculated to meet the costs of only basic survival needs, such as for food, fuel and shelter, could ever be seen as “helping people.”
I don’t believe that Orwellian semantic shifts (or ‘thrifts’, in this case) can ever provide a genuine and effective solution to poverty and inequality.
Some major inconsistencies and incoherences in the report
In the latest BIT report, loss aversion is mentioned again: “People dislike losses more than they like equivalent gains. Babcock, Congdon, Katz, and Mullainathan (2012) hypothesise that people may experience loss aversion if they consider taking a job paying below past earnings. Therefore, they may stay on unemployment benefits longer than they should. Unrealistic wage expectations may be reinforced when the social status and personal identities of workers are strongly tied to their previous job.” [My emphasis]
Note the phrase “unrealistic wage expectations” and later incoherent comments in the report about in-work poverty, which I will highlight.
The summary report states in the introduction: “A third of the UK population spent at least one year in relative income poverty between 2011 and 2014.
Traditionally policymakers and anti-poverty organisations such as the Joseph Rowntree Foundation (JRF) have focused on boosting people’s economic capital (e.g., income) and human capital (e.g., educational attainment) to reduce poverty. While investments in these areas have led to important gains in opportunity for many Britons, emerging research from behavioural science shows that other less tangible resources, which derive from psychological, social and cultural processes, significantly influence people’s ability to overcome disadvantage.
BIT was commissioned by JRF to examine the role of individual decisions in shaping people’s experiences of poverty in the UK and to identify the drivers of these decisions. This reflects JRF’s interest in looking beyond traditional, structural drivers of poverty. Our findings, based on a review of the published literature, are presented in a new report, launched today.”
Let’s cut to the chase. The entire document is framed by the use of a distinct and established narrative; it’s composed of a pre-loaded ideological language, references and signposts, using comments and phrases like “[…] we explain some of the ways that cognitive, character and social capital influence social mobility, via decision-making.”
And a sub-heading: “Character capital: Self-efficacy and responsive parenting.” Apparently, “home visits by health workers have had positive effects in preventing intergenerational poverty.” That’s quite a remarkable claim, given that the document acknowledges poverty is actually increasing in the UK.
The whole concept of character capital is itself founded on the notion that people with an “internal locus of control” tend to perform tasks better than those with an “external locus of control.” This is about where people place the responsibility for what they achieve – either “inside” individuals, based solely on notions of merit, specific skills and talents, or external to individuals – “outside” of them, based on environmental conditions such as competition, chance, opportunities, socioeconomic, employment market context and so on. However, the cited evidence to support this theory was later contradicted in the report.
One of the key features of poverty is loss of choice and a steady erosion of control over one’s decisions, of course.
It’s also worrying that it is implied those who believe that achievement is linked with structural conditions are “under-performers.” It reads a little like a Samuel Smiles Victorian treatise on “thrift, character and self-help.”
It’s also an almost subliminal method of dismissing the impact of structural constraints on the opportunities available to individuals. It serves to make invisible what was once a key consideration in public discussions about poverty: the unequal distribution of power, wealth, resources and opportunity.
Also of note: “low levels of financial literacy” was conflated with notions of “human capital”, which “potentially exacerbate the effects of depleted cognitive capital among low income groups when choosing between credit options.” Nothing to see here, then, regarding the behaviour of lenders. I mean whoever heard of a bank offering an overdraft to people who actually need one. Still, thank goodness there are generous companies like Wonga, always ready to step up to the mark, with eye-watering interest rates to offer those on low incomes.
The research authors seem to think that the only human potential worth recognising is that of our economic decision-making. Yet when people are materially poor, budgeting and decision-making are invariably constrained – that’s intrinsic to the very nature of poverty.
Limited decision-making and reduced available choices don’t cause poverty: they are the subsequent exclusion effects of poverty.
It’s telling that none of the recommendations made in this document actually address the structural and political causes of material poverty and growing inequality in the UK.
There is a substantial incoherence in some of the claims made, too. For example: “The world of work is possibly the single most important policy area for maximising individual and household resources to prevent and overcome poverty.”
Yet: “Just under half of those in poverty in the UK live in a workless household (Joseph Rowntree Foundation, 2014)”. So work clearly doesn’t pay for over half of those people in poverty.
In fairness, it is later acknowledged that: “However, simply being in work is not sufficient to prevent or overcome poverty. Nearly two-thirds of children in poverty live in working families.”
This heavily jargonised rhetoric is, on the whole, about looking for cheap individualist “solutions” to poverty that disregard the need for improving people’s material and financial situations, by extending on an existing neoliberal narrative of alleged individual fault, character deficits, cognitive bias and decision-making flaws.
None of this will raise the profile of crucial issues such as the conditions imposed by austerity and neoliberal policies, socioeconomic organisation and political decision-making, that are having a profound impact on growing inequality and increasing poverty in the UK. The persistent use of the word “workless” rather than “unemployed” is another linguistic signpost for neoliberal competitive individualism, too.
Geographer David Harvey describes neoliberalism as a process of accumulation by dispossession: predatory policies are used to centralise wealth and power in the hands of a few by dispossessing the public of their wealth and assets. The report does not refer to the mode of political-economic organisation of which growing inequality and poverty are an intrinsic and inevitable feature.
Proposed solutions: more of the same
Summary of recommendations:
1 Make it easier to access low cost credit through extending access to interest-free Budgeting Advances; assisting credit unions to expand online services; and providing tax relief to individuals taking out payroll loans.
2 Further restrict practices by high cost credit providers that play on consumer biases, and test remedies that will improve consumer credit decision-making.
3 Continue to evaluate financial capability programmes through initiatives like the Money Advice Service What Works Fund.
(Access to credit does not alleviate poverty in the long-term.)
1 Test ways of automating rainy day savings through employer enrolment, default savings accounts with banks, and Universal Credit payments.
2 Evaluate the effectiveness of financial apps for helping people save.
3 Optimise the Help to Save matching scheme, through testing auto-enrolment and prizes for regular saving, to encourage low-income groups to save.
(Poor citizens do not have sufficient funds to make savings. And research shows that absolute poverty is growing in the UK, which means that many people often don’t have sufficient funds for meeting even fundamental survival needs, such as for food and fuel.)
1 Use identity-building activities in Jobcentres to cultivate intrinsic motivation for work in order to improve the quality and sustainability of jobs that people find.
2 Collect longer-term and more holistic outcome measures of labour market interventions to understand their full impact on poverty.
3 Develop a simple tool for Jobcentres to identify capital deficits in order to match interventions to individual job seeker needs.
1 Develop a common “cognitive load stress test” that measures how easy it is for eligible groups to access government entitlements.
2 Use annual entitlement summaries to prompt existing welfare recipients to apply for other assistance they may be eligible for, and to help them budget.
3 Experiment with the design of welfare conditionality to boost cognitive capacity and self-efficacy, such as having claimants set their own payment conditions.
PREVENTING INTERGENERATIONAL POVERTY
1 Provide families in or near poverty with free access to evidence-based online parenting programmes.
2 Develop community to strengthen social ties between parents from different backgrounds.
3 Conduct research into whether small and inexpensive adjustments to housing conditions can reduce cognitive load and improve parental decision-making.
Post secondary education
1 Make the application process for post-secondary education as simple as possible, for example, by pre-populating application forms.
2 Use personalised assistance and prompts to encourage students and parents to apply to post-secondary education.
3 Link formal information about returns to post-secondary education with informal information (from peers) about what post-secondary education will be like.
Every single intervention recommendation fails to address the structural causes of poverty, which lie outside of the control of people experiencing poverty. Yet most of these recommendations are aimed at prompting the state to act upon individuals.
Proposals such as providing access to parenting programmes, “identity-building activities in Jobcentres to cultivate intrinsic motivation for work”, “rainy day savings”, and to “develop a simple tool for Jobcentres to identify capital deficits in order to match interventions to individual job seeker needs” all sound like a New Right blame-storming exercise. Again, the problem of poverty is regarded as being intrinsic to the individual, rather than one that is about material deprivation which arises in a wider political, economic, cultural and social context.
Post secondary education costs money and isn’t supported by the state. The Education Maintenance Award (EMA) was withdrawn by the Conservatives, and the cost of a university education is now far too much for many young people from poorer backgrounds because of the tripling of fees and reduction in maintenance support. It’s the government that need a nudge, here. This is a good example of how opportunities and choices are being limited for poorer citizens by cuts and constraints imposed by the neoliberal ideologues in office.
The government never question the decision-making of the powerful and wealthy, yet it certainly wasn’t the poorest citizens that caused the global recession in 2007, nor was it the poorest citizens that imposed damaging austerity policies. The poorest people are burdened with a disproportionate weight of austerity cuts to their income and support. The wealthiest citizens have meanwhile been gifted with substantial tax cuts.
Nudge is a state prop for neoliberalism, inequality and social control
Neoliberals argue that public services present moral hazards and perverse incentives. Providing lifeline support to meet basic survival requirements is seen as a barrier to the effort people put into searching for jobs. From this perspective, the social security system, which supports the inevitable casualties of neoliberal free markets, has somehow created those casualties. But we know that external, market competition-driven policies create a few “haves” and many “have-nots.” This is why the welfare state came into being, after all – because when we allow such competitive economic dogmas to manifest without restraint, we must also concede that there are always ”winners and losers.”
Neoliberalism organises societies into hierarchies. Inequality is therefore an inevitable feature of the UK’s current mode of socioeconomic organisation.
The UK currently ranks highly among the most unequal countries in the world.
Inequality and poverty are central features of neoliberalism and the causes therefore cannot be located within individuals.
Neoliberals see the state as a means to reshape social institutions and social relationships based on the model of a competitive market place. This requires a highly invasive power and mechanisms of persuasion, manifested in an authoritarian turn. Public interests are conflated with narrow economic outcomes. Public behaviours are politically micromanaged. Social groups that don’t conform to ideologically defined outcomes are stigmatised, and outgrouped.
Shamefully, in a so-called first world, wealthy liberal democracy, othering and outgrouping have become common political practices.
Replacing spent micro-managementspeak with more micro-managementspeak
The Nudge Unit, which was part-privatised in 2014, have now warned that some Government policies were reducing so-called “cognitive bandwidth” or “headspace” of the people they were designed to help. So more theoretical psychobabble to overwrite the previous psychobabble which didn’t work when applied via policy.
This is bland neoliberal managementspeak at its very worst. The policies are causing profound damage, harm and distress to those they were never actually designed to “help”. Let’s not permit an evading of accountability and techniques of neutralisation: the use of rhetoric to obscure the real intention behind policies, as well as the consequences of them. It’s nothing less than political gaslighting.
Of course the report attempts to apply “the latest findings from behavioural science to improve government services.” In a neoliberal framework, there are many lucrative opportunities for private companies to experiment in the psychological management of populations who have become the casualties of political decision-making, for political ends. The ethical relativity, moral entrepreneurship and sheer financial opportunism on display here certainly reflect some fundamental neoliberal values and principles. The main one being profit over human need.
Dr Kizzy Gandy proposes that cost-effective “simple tweaks” to services could help improve the way services worked. “Government policies should help people to have less on their mind, not more,” she added.
However, I propose that government policies in democratic societies should also be designed to meet the public’s needs, including alleviating poverty, rather than being about impoverishing targeted social groups and then undemocratically acting upon individuals, without their consent, directing them how to behave in order to accommodate government ideology and meet politically defined neoliberal outcomes.
Material poverty steals aspiration and motivation from any and every person that is reduced to struggling for basic survival. Abraham Maslow (a real social psychologist) explained that when people struggle to meet their basic physical needs, they cannot be “incentivised” to fulfil higher level psychosocial needs – that includes job seeking.
Labour Shadow Work and Pensions Secretary, Debbie Abrahams, said: “Even the government’s own Behavioural Insights Team now recognise the mountains of evidence that the widespread use of sanctions is not leading to better outcomes for people seeking work. Indeed, this government team’s report suggests that sanctions may be operating as a barrier to finding a job.
“This government should be ashamed of their persistent failure to act on this issue over many years, after I, and other campaigners, have provided evidence of the devastating impacts of their sanctions policy. I have committed to putting an end to Tories’ cruel and unnecessary sanctions regime, as part of our work to transform the social security system.”
In fairness to the BIT, the report does say on page nine, among the listed areas of proposed future research: “A significant portion of behavioural science research focuses on improving the decisions of end-users – in this case people in poverty. But what about the decisions of service providers and policymakers? How can we improve the quality of their decisions to support people [to] escape poverty? And how can we build their empathy with those whose opportunities are at stake?”
But who is nudging the nudgers? I would think nudgers are “incentivised” by those providing the contracts that pay their salaries, on the whole. The government part-own the nudge unit.
Researchers from a variety of universities across the UK, using qualitative longitudinal interviews with nine groups of welfare service users from across England and Scotland, aim at determining longer-term effects of sanctions. The first wave findings from this collaborative ongoing study regarding the effects and ethics of welfare conditionality were released last year
It was found that linking continued receipt of benefit and services to mandatory behavioural requirements has created widespread anxiety and feelings of disempowerment. The impacts of benefit sanctions are universally reported by service users as profoundly negative, having severely detrimental financial, material, emotional, psychological and health impacts. Some individuals disengaged from services, some were even pushed toward “survival crime”.
The most surprising thing about these findings was the general lack of surprise they raised.
A recurring theme is that sanctions are grossly out of proportion to “offences”, such as being a few minutes late for an appointment. Many reported being sanctioned following administrative mistakes. The Claimant Commitment was criticised for not taking sufficient account of individuals’ capabilities, wider responsibilities and vulnerabilities. Many saw job centres as being primarily concerned with monitoring compliance, imposing discipline and enforcement, rather than providing any meaningful support.
Power relations, class and economic organisation have now completely disappeared from public conversations about poverty. Neoliberal anti-welfarism, amplified by a corporate media, has aimed at reconstruction of society’s “common sense” assumptions, values and beliefs. Class, disability and race narratives in particular, associated with traditional prejudices and categories from the right wing, have been used to nudge the UK to re-imagine citizenship, human rights and democratic inclusion as highly conditional.
This is not just about shifting public rational and moral boundaries to de-empathise the electorate to the circumstances of politically defined others. It also obscures the consequences more generally of increasingly non-inclusive, anti-democratic, prejudiced and extremely punitive policies.
The bottom line is that government policies are expressed political intentions regarding how our society is organised and governed. They have calculated social and economic aims and consequences. In democratic societies, citizens’ accounts of the impacts of policies ought to matter.
However, in the UK, the way that policies are justified is being increasingly detached from their aims and consequences, partly because democratic processes and basic human rights are being disassembled or side-stepped, and partly because the government employs the widespread use of linguistic strategies: euphemisms, superficial glittering generalities and techniques of persuasion to intentionally divert us from aims and consequences of ideologically (rather than rationally) driven policies. Furthermore, policies have become increasingly detached from public interests and needs.
For example, the state has depoliticised disadvantage, making it the private responsibility of citizens, whilst at the same time, justifying a psychopolitical approach that encodes a punitive Conservative moral framework.
According to the behavioural economist theorists, in their highly jargonised and fairly meaningless report, government policies are reducing so-called “cognitive bandwidth” or “headspace” of the people they were designed to help.
That the government imposes additional “cognitive costs”, as well as material and financial ones, on low-income groups, is hardly a groundbreaking revelation.
I can put it much more plainly, and strip it of neoliberal psychobabbling: imposing sanctions on people who already have very limited resources is not only irrational, it is absurdly unjust, damaging, distressing and spectacularly cruel.
Penelope and her suitors
A guest post written by HUBERT HUZZAH·
Sometimes Science reveals something we would prefer not to know. For Medieval Popes, who could control the World by deciding the date of Easter, Natural Science revealing that Aristotlean Wisdom was flawed was one of those things. Giordano Bruno was dressed in yellow and burned at the stake. Galileo Galilei was forced to write a retraction of experimental findings. Natural Science showed that Venus had phases which may seem obscure. However, when the only consistent explanation of those phases is that Venus is orbiting the Sun the Papacy is challenged. The knowledge, that the Earth orbited the Sun, was not something Galileo originated. The big offence of Galileo was that he proved the thesis: that the Earth is not the Centre of Creation.
The date of Easter is an important illustration of Papal Power. The Computus was the process by which Easter was calculated and, once determined, the Computus fixed all of the significant dates of the calendar for the entire year. Fixing the date of Easter was not simply about deciding a single date. The Computus was as the centre of determining the way the World would work. Not only fixing Easter but also significant moveable feasts which were non-working days and even Quarter Days, when rents, tithes and obligations were due. Controlling Easter was a proof of mysterious power and a very worldly power.
Science proved something far more significant than Heliocentricity: it proved no mysterious power was needed to know things. It proved that the Papacy, the Computus and all of the moveable feasts were constructed by society, not ordained, and this could be proven without any need to ask for permission. Natural Science demonstrated that the Aristotlean Method has distinct limitations and that those limitations can be overcome by a Socratic Method.
According to Aristotlean Method, Scientific Knowledge is the Knowledge of Causes. For Aristotle, a demonstration is a deduction in which the premises are true, primary, immediate , better known than the conclusion, prior to the conclusion and causes of the conclusion. In other words, Scientific Knowledge is a sequence of causes back to the mists of existence. Science is not merely a body of knowledge but a body of Authoritative Knowledge. Socrates may have written nothing: an appropriate mystery for someone whose Method consists of asking questions that banish belief but clarify what is known.
The Socratic Method has parallels in Crowdsourcing while the Aristotlean Method tends to be about Expertise. Both have a relevant role to play in Science.
There are infant simulator programmes seeking to prevent teenage pregnancy. These are used in high, middle and low countries. Despite policy popularity published evidence of their long-term effects are rare. The Lancet has recently published a randomised control trial investigating the Virtual Infant Parenting (VIP) programme’s effects on sexual health. This study is registered as an international, randomised controlled trial, (ISRCTN24952438). The aims of registration suggest the Socratic approach of discovering knowledge, yet the outcome of the study suggests the Aristotlean approach of dispensing knowledge.
After statistical analysis, the Lancet Authors concludes:
“The infant simulator-based VIP programme did not achieve its aim of reducing teenage pregnancy. Girls in the intervention group were more likely to experience a birth or an induced abortion than those in the control group before they reached 20 years of age.”
which suggests that, just possibly, infant simulator programmes do not prevent pregnancy and, indeed, might even demystify childcare to such an extent that young women can make a more informed choice about getting pregnant. This would be a reasonable hypothesis to investigate. Young women might well, in Socratic fashion engage in critical thinking and determine that having a child younger is a better prospect as Virtual Infant Programme has demonstrated the challenges of childcare. Programme and Policy creators, in Aristotlean fashion, persist in the idea that the Policy is correct but requires adjustment.
Which leaves Science in the same situation as Giordano Bruno: too badly connected to the political, economic and social infrastructure of society to be merely told off. Science, and Scientists, are dressed in metaphoric yellow and burned at the allegorical stake. The Socratic Revolution of 1615 embraced empirical observation along with socratic questioning and began the slow overturn of Aristotlean Science. Four hundred years later, Science policy has, largely, reestablished Aristotlean Science. Science by fiat.
One of the huge gaps in the narrative around the infant simulator approach is that it fails to acknowledge that the programme seeks behavioural change. The infant simulator is a nudge towards “better” life choices. Yet, the life choices being made are exactly the opposite of those intended. In the intervention group – the group being nudged – 8% got pregnant; in the control – un-nudged group – 4% got pregnant. Instead of engaging with the empirical evidence – that the intervention is associated with higher pregnancy rates – Programme Designers lock themselves into an Aristotlean Behavioral Change Stairway Model whereby the intervention will be redesigned.
What Programme Designers rarely do is question if the underlying assumption – reducing pregnancy rates – is actually realistic. Evolution has reinforced the human behaviour of having children. When parents – particularly women – see a child they are rewarded with the hormone Oxytocin. The same hormone is involved in social recognition, orgasm, childbirth and stress. Designing a programme with the potential to promote oxytocin secretion is designing a programme with the potential to promote childbirth. Evolution trumps Policy. Regardless of Policy Objectives.
Which is a fundamental problem with Nudge. Ultimately, as observed by Sue Jones in her excellent Politics and Insights Blog, Nudge is about the exercise of power. As with a lot of Aristotlean Science of the past, the exercise of power requires control of social construction. The Computus must be a mystery controlled by a Papacy. Anything else leaves open the possibility of transformative change through Socratic Method. Critical Thinking as it is known.
Persuading young women to delay childbirth has an awful lot to recommend it in a society where childbirth is a personal Easter that determines a range of future events. Controlling female fertility need not be about improving opportunities in life by nudging young women to delay conception. There is evidence that particular nudge fails in some situations. In those situations, Policy remains resolutely Aristotlean: it does not change.
The huge truth of the Galilean Revolution is not that Galileo did something new and revolutionary but that between the trial of Bruno in 1593 and the trial of Galileo in 1633 the same thing resulted in two different results. The Papacy ceased to be able to define the social construction of reality as Aristotlean Science failed. Yet, here we are, four centuries later, with Aristolean Policy in a Socratic World.
Lancet Article: “Efficacy of infant simulator programmes to prevent teenage pregnancy: a school-based cluster randomised controlled trial in Western Australia”, Brinkman, et al.
Politics and Insights: The benefit cap, phrenology and the new Conservative Character Divination.
© 2016 Hubert Huzzah
Smart Cards entered our collective consciousness during autumn 2012, as Iain Duncan Smith declared his intention to discipline Britain’s “troubled” families. In unveiling his proposals at the Conservative Conference back in October 2012, Duncan Smith attempted to frame the cards as better value for taxpayers’ money, implying that poor people don’t pay taxes, (when the poorest actually pay proportionally more) and his rhetoric was extremely stigmatising.
Then MP Alex Shelbrooke presented his private member’s bill in December 2012, providing us with yet another shuddering glimpse into the underlying Tory moral outrage, prejudice and punitive attitudes towards people claiming benefits. He argued for a “welfare cash card” to limit spending to absolute basics. Isn’t welfare provision as it is just enough to cover the absolute basics for survival? It’s calculated to meet the cost of food, fuel and shelter only.
Despite his scapegoating narrative about addressing “idleness”, Shelbrooke’s proposal was intended to apply to those in work, who claim benefits such as tax credits and housing benefit, penalising and outgrouping those on a minimum or low wage, also. The plan was to restrict the goods that people claiming benefits could buy with their cards. Not so much offering a “nudge” or “incentive”, but rather, a bludgeoning enforcement.
Government proposals: virtual food vouchers and automated nudge
Earlier this year, the government set out proposals in a report regarding how Blockchain Technologies’ distributed ledger technology which provides “efficient and transparent” digital records of cryptocurrency transactions, could be used for public services. In their report called Distributed Ledger Technology: Beyond block chain, the government’s scientific advisor says:
“Distributed ledger technology (DLTs) offer significant challenges to established orthodoxy and assumptions of best practice, far beyond the recording of transactions and ledgers. These potentially revolutionary organisational structures and practices should be experimentally trialed — perhaps in the form of technical and non-technical demonstrator projects — so that practical, legal and policy implications can be explored.”
“Areas where we believe work could be taken forward include the protection of national infrastructure, reducing market friction for SMEs [Small and medium-sized enterprises] and the distribution of funds from Department for Work and Pensions and other government departments.” [Boldings mine.]
A distributed ledger is a database that can record financial, physical or electronic assets for sharing across a network through what is claimed to be entirely transparent updates of information.
Its first incarnation was Blockchain in 2008, which underpinned digital cash systems such as Bitcoin. The technology has now evolved into a variety of models that may be applied to different business problems.
Speaking at Payments Innovation Conference earlier this month, Lord Freud, one of the main architects of the welfare “reforms” said:
“Claimants are using an app on their phones through which they are receiving and spending their benefit payments. With their consent, their transactions are being recorded on a distributed ledger to support their financial management.”
The Department for Work and Pensions (DWP) has been working withBarclays, Npower, University College London and a UK-based distributed ledger platform startup called GovCoin to create an app which tracks people’s benefit spending.
The ongoing trial which, is designed to demonstrate “the practical applications of the technology,” began in June. It’s another Conservative experiment on people claiming social security.
Jeremy Wilson, the vice chairman of corporate banking at Barclays, said: “This initiative focuses on adding an additional layer of richer data and identity onto payments, so that a deeper and more effective relationship can be established between the government and claimants.”
I wonder exactly what that “effective relationship” will entail? I bet it’s not one based on mutual respect and democratic dialogue. I also wonder if the Department for Work and Pensions will be issuing people who have no income with Smart phones.
How will the collected information on spending be used? Are we going to see people claiming social security being named and shamed for buying Mars bars, a bottle of wine or a book? Or birthday and Christmas presents for their children? Will the state be sanctioning people that make purchases which the government deems “unnecessary”?
He added: “We are keen to see how the positive potential of this service develops and adds to our wider efforts to explore the uses of distributed ledger technology.”
Distributed ledger technology was identified as a way of potentially “saving billions of pounds a year from welfare fraud and overpayment errors.“
Oh, that whoppingly over-inflated 0.7% of claimants again. Just imagine how many trillions we would save if we used technology to get a grip of tax avoidance.
The technology is hoped to provide a cheap and easy way of getting welfare claimants without bank accounts into the system as well as verifying their identities, and would also provide a “transparent account of how public money was spent, transform the delivery of public services and boost productivity,” the government’s chief science adviser, Sir Mark Walport, said in a report last January. Those same words are used every time vulture capitalists are circling a public service.
Walport said: “Distributed ledger technology has the potential to transform the delivery of public and private services.” More words from the vulture capitalist crib sheet of glittering generalities.
“It has the potential to redefine the relationship between government and the citizen in terms of data sharing, transparency and trust and make a leading contribution to the government’s digital transformation plan.”
The government distributes £3.8bn in payments every day. However, there are some concerns over how protection of data and privacy with the technology will be “managed.”
The Open Data Institute welcomed the findings on the whole. However, it warned that the government must be wary of the challenges involved in blockchain technology and apply it in an effective way. They say: “We agree that blockchains could be used to build confidence in government services, through public auditability, and could also be used for widely distributed data collection and publishing, such as supply chain information. Smart contracts also hold great potential; what if your train tickets were smart contracts that meant you paid less for delayed trains?”
Smart cards and smart contracts, the more things change, the more the Tories stay the same.
Further: “However, in our research we have seen cases where people are trying to bolt old, failed or impossible policy and business ideas onto the new technology or to unnecessarily reinvent things that work perfectly well.”
The institute also warned of the privacy issues raised by incorporating private data and suggested the government better develop and solve these challenges by focusing on industry specific groups such as the finance or healthcare sectors.
Having failed in introducing the punitive smart card more than once, the Conservatives are now resorting to a stealthy introduction of a variation to curtail the freedom of poor people claiming social security, using cryptocurrency, state regulation and an unprecedented, Orwellian level of state monitoring and control of what people who are struggling to make ends meet are buying.
Some further thoughts
Conservatives claim to endorse personal responsibility, limited government, free markets, individual liberty, and deregulation, amongst other things. They believe the role of government should be to provide people the freedom necessary to pursue their own goals. Conservatives claim their policies generally emphasise “empowerment of the individual to solve problems”. So how does any of this tally with harsh welfare cuts, public service cuts, restrictions on the right to by certain goods, the removal of access to legal aid, limiting housing options for the poorest, bedroom tax, numerous human rights contraventions, psychocompulsion through increasingly stringent welfare “conditionality” and the draconian sanction regime, for example?
Limiting “consumer choice” and spending flies in the face of the Tories’ own free market dogma. Furthermore, as it stands legally, the government cannot currently stipulate how people claiming benefits spend their money.
The Tory definition of “troubled family” conflates poverty, ill health, unemployment and criminality. Iain Duncan Smith claims to be targeting substance abusers (“drug addicts” and “alcoholics”) but it’s clear that the government’s definition means he’s referring largely to the poor and disabled people. His proposal to deal with people who don’t buy their children food because they’re “drug addicted” would actually target people who don’t buy food because they can’t afford it.
This was taken from a longer article: State-regulated cryptocurrency and micro-managing people claiming welfare
This post was written for Welfare Weekly, which is a socially responsible and ethical news provider, specialising in social welfare related news and opinion.
Labour’s shadow Work and Pensions Secretary, Owen Smith MP, has accused the Department of Work and Pensions (DWP) of being “cruel and incompetent”, after at least 327,379 sick and disabled people were left without their £10 Christmas Bonus.
Benefits were originally calculated to meet only the basic costs of food, fuel and shelter. The Pensioners and Family Income Supplement Payments Act 1972 ensured that a Christmas Bonus of £10 is paid to the recipients of some benefits as a one off payment. The subsequent Pensioners’ Payments and Social Security Act of 1979 established the Bonus permanently, although the amount has never been uprated in line with rising prices and living costs.
On the government site, it says:
The Christmas Bonus is a one-off tax-free £10 payment made before Christmas, paid to people who get certain benefits in the qualifying week. This is normally the first full week of December.
You don’t need to claim – you should get paid automatically.
Mr Smith said:
“They’ve [the DWP] now been forced to admit that 300,000 people went short because they couldn’t even manage to make a simple payment in time for the holidays.
People have always known the Tories are cruel, but they used to think they were at least competent.
Iain Duncan Smith seems to be having a good go at proving they’re both cruel and incompetent.”
A DWP spokesperson responded, saying
“All regular ESA payments were made on time over Christmas, with the majority of people receiving their additional Christmas seasonal payment on schedule.
Due to an administrative error, a small minority may not receive their additional Christmas seasonal payment until the end of January.”
Some people have yet to receive their payment. How long does it take to fix an “administrative error”?
I can’t help but wonder about the reason presented by the DWP for the payment delays. I don’t believe it’s the truth, although I’d be amongst the first to acknowledge the Department’s wide-ranging ineptitude.
I am a sick and disabled person who claims ESA. Having worked all of my life, and after being forced though illness to give up a job and profession that I loved, I have to say that my standard of living has very drastically dropped, and I have experienced absolute poverty – times when I have not been able to meet even basic needs, such as keeping warm and eating adequately. In 2012, a tribunal agreed with my decision to leave work on the grounds that my illness is now so severe it presents unacceptable risks to myself and potentially, to others in the work environment, as I am no longer able to fulfil even the basic responsibilities that my work entailed, reliably, consistently and safely. My consultant and GP fully supported my decision.
I wasn’t paid the Christmas Bonus in 2012, 2013 and 2014. I rang the DWP in 2014, when I realised I was entitled to the payment. After being told twice that the money had been paid into my account and it hadn’t, in October 2015, I finally received the backdated payments. I got a bizarre letter explaining that whilst the DWP had said they had paid me, they hadn’t, which I already knew.
I received my Christmas Bonus for 2015 on 14 January. It seems to me that the DWP seldom pay the Bonus unless you actually ask for it (several times) or unless an MP applies some ethical and rational pressure, as Owen Smith has done.
The government believe that any kind of welfare support creates perverse incentives for people not to work. There is no empirical evidence to support this claim. They also think that the general public are “cognitively incompetent,” drawing on the new paternalist behavioural economics (“nudge”) theoretical framework, their basic proposition is that we are fundamentally irrational and make faulty decisions that are founded entirely on our “cognitive biases.” Of course the new army of self-appointed cognitive experts and nudgers exist outside the realms of their own universal theory of “human nature” and are thus exempted from nudges. Poor people who need financial support are not.
The Tories also claim that one of the problems of providing social security arises because we believe the resulting income gain from employment is not enough to compensate for the (increased) work effort. However, the truly rational solution of course would be to raise the lowest wages, to provide a clear and positive “incentive” to work, when people are able, but instead the government have opted for a psychocratic, punitive approach, stigmatising those who are too ill to work to justify cutting essential lifeline benefits to amounts that barely cover the cost of meeting basic survival needs, adding the perpetual threat and administration of sanctions – which entail the complete withdrawal of support – for any perceived non-compliance.
The conditionality regime means that eligibility for support requires constantly demonstrating an unbounded willingness to attend often pointless, resource and time-consuming jobcentre lectures from work coaches and advisors and applying for any job presented, regardless of its appropriateness, security or pay.
The Tories ludicrously claim that this punitive approach, entailing the systematic withdrawing of essential support, and the incremental dismantling of the welfare state, is “making welfare fair”, “making work pay” , “helping people into work” and “supporting sick and disabled people” indicating an Orwellian tendency to turn the meaning of ordinary words into a form of tyranny.
Sanctions are founded on and legitimised by claptrap and psychobabble that originated from the pseudoscientific Behavioural Insights Team, too. Perhaps the Tory “Grudge” Unit is a much more appropriate name for this mean and vindictive collection of neoliberal cognitive supremicists and economic Darwinists. Armchair psychopaths.
In particular, sanctions are founded on a theory of a cognitive bias called “loss aversion” which is being manipulated and turned into a big state stick to ensure that poor people are compliant with draconian benefit conditionality. “Loss aversion” is a behavioural economics theory that attempts to euphemise draconian policies; a substituted expression that serves as a technique of neutralisation for diabolical state actions designed to instil a deep fear of destitution and starvation amongst the increasingly growing precariat, we are perpetually “downsizing” our needs and expectations to become desperate, impoverished, needing to claim support from a system that most, if not all of us have paid into.
From the shrinking category of legitimate “disability” to forcing people to work in insecure jobs for low wages or for no pay at all on exploitative work fare schemes, nudge is being used to prop up neoliberal ideology, social conservatism, and to euphemistically frame punitive policies, “applying the principles of behavioural economics to the important issue of the transition from welfare to work.” (See Employing BELIEF:Applying behavioural economics to welfare to work, 2010 and Nudging Conformity and Benefit Sanctions, 2015.)
The steady drop in real wages since 2010, according to the Office for National Statistics, is the longest for 50 years. The fall in earnings under the Conservatives is the biggest in any parliament since 1880, according to analysis by the House of Commons Library. “Making work pay” for whom, we should ask.
The Tories have a strongly anti-welfare ideology, and they also advocate using the tools of behavioural economics to “incentivise” people to work, and further claim that social security encourages dependency. Nudge theorists have proposed that making people’s present more livable with any kind of “cash gifts” only amplifies the alleged cognitive tendency people have to overestimate the magnitude of immediate benefits relative to the more distant ones of working. This is the kind of thinking that underpins Conservative policies aimed at keeping people who need to claim support perpetually poor, insecure and fearful.
However, there’s no such thing as a “cycle of benefit dependency”, it’s a traditional Tory prejudice and is based on historically unevidenced myths. Poverty arises because of socioeconomic circumstances that are unmitigated through government decision-making. In fact this government has intentionally extended and perpetuated inequality through its policies.
It’s therefore easy to see how deliberately withholding the Christmas Bonus would be justified by government officials. This government believes that people who have fallen on hard times and are desperate for financial support are driven by a “culture of entitlement.” People needing social security are being politically redefined as economic free riders. But most people claiming benefit have paid tax, national insurance, and continue to pay VAT and other hidden taxes. There is no discrete class of taxpayers: we ALL pay taxes, except of course for a number of the very wealthy and big businesses. Implying that people claiming social security are a “burden” on working people’s taxes is a fact screen, erected to prop up Tory ideology. Meanwhile the welfare state is being steadily dismantled by a government of neoliberal ideologues.
Perhaps this was just another paternalist experimental “trial” aimed at nudging sick and disabled people into work, and of course, it would be based entirely on operationalising the whopping cognitive biases and traditional prejudices of the Tories.