A Christmas Carol – Two cheers for democracy, three cheers for Christmas
The end of the year naturally prompts reflection, with the UK showing slight progress in some economic areas but persistent inequalities and low trust in democracy itself. We look at what it might take to rebuild confidence together.
Christmas is a time for reflection and when many families reunite. Festive fare and fireside catch-ups across the generational divide. The ghosts of past, present, and future encourage us to contemplate where we have gone astray and what tidings of comfort and joy might lie ahead.
Reflecting on where the past has left us today offers learnings to guide us through 2026 and beyond. In Britain, a point of departure is the Carnegie UK Trust’s Life in the UK 2025.
There is good and bad news.
The positive message is that economic wellbeing has edged up over the previous year. There are small signs of improving mental and general health in the population.
Sadly though, the survey records the persistence of significant disparities and inequalities nationally. At the local level, there is declining satisfaction with job opportunities and widespread problems with noise and litter pollution.
Overall, a stagnant result compared to previous years.
However, there is a very disturbing feature in the results.
Amongst the four wellbeing categories that the survey examines – social, economic, environmental, and democratic – the lowest overall score goes to our satisfaction with democracy itself.
By far.
The collective wellbeing score in this category is a dismal 41 out of a possible 100. Average scores in the other categories are in the 62-72 range.
Specifically, Carnegie UK’s research uncovers a widespread lack of trust in politics and government, with 72% of UK adults reporting that they do not feel able to influence decisions affecting the UK.
Something is rotten in the state.
The diagnosis – what is going on?
‘Trust’ has etymological roots lying in the Norse word ‘traust’ – implying fidelity – something or someone in which we can have confidence.
In finance, we are aware that if confidence wanes, crisis is lurking in the wings – think no further than a bank run. Likewise, without trust, democratic institutions are likely to move to darker places, sometimes suddenly.
A guiding policy – what can we do?
Confucius advised that a stable society needs three things: weapons, food, and trust. If all three cannot be achieved, its leader should forgo weapons first, and then food, for “without trust we cannot stand.”
So, the guiding principle for policy must be to rebuild trust – which is easier said than done. We know the maxim that trust takes an age to build but can collapse in minutes. We must also remember the law of unintended consequences associated with new policy interventions or the introduction of new technologies, however well-intentioned.
For example, the move from analogue television and newsprint to social media promised a more dynamic and broader democracy. In practice, informed debate has been hollowed out, replaced by distractions to catch the eye, not feed the mind. From there, the weeds of misinformation and disinformation have taken root.
Yet, despite the risks of policy mistakes and unforeseen implications of new technologies, we cannot sit idly by and see democracy impaired beyond repair.
How can we rebuild social trust?
Fortunately, in the UK, we have an enviable starting point. Our media is free despite its well-aired challenges. People vote without fear of retaliation. Elections are contested, and our Electoral Commission is world class. Our democracy admits variety and permits criticism, as E.M. Forster observed, so two cheers for it.
But that is no cause for complacency.
A recent set of talks by David Runciman** is worth a listen for potential improvements in UK electoral and parliamentary reform. From a top-down perspective, everyone recognises that our political system can do better, especially in a technology-enabled world.
Yet the deepest issue is that restoring trust in society will imply the bottom-up commitment and participation of us all – an end to apathy and distraction. Our so-called representative democracy has become disenfranchising – the Carnegie Report is telling us.
To vouchsafe democracy in future, it starts with us.
This goes beyond common calls for greater devolution. It involves supporting the myriad voluntary organisations and other local groups that form the hidden sinews and muscles of our society. An example would be the power of local nature discovery to contribute towards mitigating global climate challenges (Climate Policy – from stormy waters to golden shores). But there are many more.
As Christmas nears, it is time to remember that families and friends themselves are the most enduring social organisations in humanity´s fleeting existence on this planet. Without them, all evolutionary bets are off.
The Spirits that visited Scrooge remind us how contemplation at Christmas can change our outlook to everyone´s benefit. As you gaze into the embers this Yuletide, think on how we can work together in our homes and communities to build an inclusive future.
You never know – you might just help to change the world.
*Further reading: Life in the UK 2025. Carnegie UK Trust. Available on its website.
**Further Listening: Past, Present, Future podcast. Fixing Democracy (six episodes).
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Disclaimer: The blog does not aim to give investment advice, but is designed to afford relevant longer-term context to investors, encouraging a broad perspective where uncertainty is high and a spirit of learning is important. The views expressed are those of the author, not those of Investec.
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