We Are Getting Richer, But More Insecure and Cynical About Politicians. What Can Be Done?

On the surface, the British economy is doing well. It is the richest EU country in terms of national net income per head, and has a reputation for attracting global talent. Yet citizens express little trust in their government and report a feeling of insecurity. Worrying economic signs include rising levels of debt and dissatisfaction about public services. Low morale presents a challenge for Prime Minister Gordon Brown. The public won’t stand for large increases in public spending. By localizing government decisions, Brown could encourage appropriate and justifiable decisions, argues columnist Hamish McRae, while decreasing blame for the central government should something go wrong. “All around the world, governments are searching for a way of squaring rising needs with a squeeze on revenues from ever-more mobile companies and increasingly mobile citizens,” writes McRae. “You have to be competitive on services but you also have to be competitive on tax. Tricky.” Should Brown overcome these challenges, suggests McRae, he has the potential to influence his country and world as much as his predecessor did. –YaleGlobal