Tuesday, February 11, 2014

Manufacturing Compliance: The Nudge Unit and its Privatisation

Reblogged from Beastrabban's Web Blog:


Blakes 7 weapon
Federation scientist Cozer and his companion, the freed slave Rashel, await galactic freedom fighter Blake in the Blake’s 7 episode, Weapon.

Last Friday and today, the I newspaper has run articles reporting the impending privatisation of the Government’s Behaviour Insights Team, or Nudge Unit. The article describes the unit as using
‘insights from the emerging field of behavioural economics and psychology to subtly change the processes, forms and language used by government – to achieve outcomes that are in the in the “public good” and save money.’

A boxed article at the side then goes on to explain it more fully, stating that

‘Nudge articulates the idea that people can be persuaded to make the right decisions by simple changes in how choices are presented to them.’

It goes on to explain that the theory was first proposed in a book of the same name, published in 2008 by the economics professor Richard Thaler and law professor Cass Sunstein. They acknowledged that people frequently make bad decisions in their lives, thus contradicting one of the central tenets of economics – that people will always act rationally for their own good. The two authors then argued that the way choices are phrased or presented – the ‘choice architecture’ can be framed so that it nudges ‘people towards the most beneficial outcome without restricting their personal freedom.’

Although the two authors stated that “‘the libertarian aspect of our strategies lies in the straightforward insistence that, in general, people should be free to do what they like.” They then qualified this with the statement that it was ‘legitimate for choice architects to try to influence people’s behaviour in order to make their lives longer, healthier and better.”

Today’s I carries an interview with one of the founders of the Nudge Unit, David Halpern. He states that the Unit was set up four years ago under Tony Blair as his Strategy Unit, at a time when ‘the Blair administration was expanding the size of the state – spending more and regulating more’, often according to Blair’s own personal inclination. It did not, however, catch on with the Labour government, and only came into its own with the arrival of the Coalition in 2010. Halpern states that ‘Their instincts were generally ‘we’ve got no money and we’re going to constrain the size of the state and deregulate’.


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