Podcast Summary:

LSE Public Lectures and Events
Episode: How Good We Can Be: Ending the Mercenary Society and Building a Great Country
Speaker: Will Hutton
Date: February 11, 2015
Host: John Hills (LSE)

Overview of the Episode

In this episode, Will Hutton, acclaimed writer and commentator on social and economic affairs, discusses his then-new book How Good We Can Be: Ending the Mercenary Society and Building a Great Country. The lecture explores Britain’s economic and societal development over the past 20 years, critiques the dominance of "mercenary" corporate practices, and proposes an ambitious agenda for revitalizing the UK into a more just, innovative, and cohesive society. Hutton draws on decades of observation, research, and policy work, arguing for deep institutional reform, restructured capitalism, and social investment.

Key Discussion Points and Insights

1. Britain’s Progress and Persistent Problems (03:46–14:50)

• Hutton reflects on his earlier 1995 book, The State We're In, noting how many problems he identified then—inequality, underinvestment in innovation, over-financialization—have become even more severe.

• Notable Quote:

  “I was really worried about inequality and the levels of executive pay, which I thought was an astonishing 60 times median pay—now 140 times... Every polarity on which you look.” (05:13, Will Hutton)

• He laments the dissolution of traditional solidarities and growing atomization, the rise of Euroscepticism morphing into xenophobia, and the decline in young people’s future prospects (home buying, careers, stability).

• Although some aspects of Britain (e.g., digital adoption, entrepreneurial spirit, higher education) remain strong, he warns that these positives are undermined by systemic flaws in economic management and corporate governance.

2. The Era of Transformative Technologies (14:50–19:00)

• Hutton highlights the coming technological revolution, with the next century expected to bring more ‘general purpose technologies’ (GPTs) than the last 500 years combined.
• Notable Quote:

  “Looking around the audience at some of the young people here, you’re going to live through more change cumulatively than has been lived through by anyone at any time in history. It’s phenomenal, wonderful. It's so exciting.” (17:34, Will Hutton)

• He is optimistic about the potential for new industries, digital jobs, micro-entrepreneurship, etc.—provided society’s structures adapt to allow mass flourishing.

3. The Core Problem: Corporate Degeneracy (19:00–36:00)

• Hutton targets the dominant model of British capitalism, especially corporate structures over the last four decades. He contrasts the original purpose-driven company with today’s “ownerless” corporations, beholden only to short-term share price maximization.

• Laments how privatization in the UK often led to extraction for shareholder benefit (especially foreign shareholders), loss of long-term investments, and public disempowerment.

• Telling Anecdote:

  “Just 20 years ago, ICI and GEC were two of the biggest companies in Europe... They just don’t exist... What’s happened is that they’ve been dismembered... Their German compatriots... exist and prosper.” (22:35, Will Hutton)

• Ownership churn is rampant in UK companies, with shares often held for less than six months, mostly by global hedge funds—contrasted with “anchored” ownership models in Germany, Japan, or Nordic countries.

• On executive rewards:

  “Executive pay has gone up four times in 25 years. Has productivity, innovation, performance gone up by four times in 25 years?” (26:45, Will Hutton)

4. Proposals for Reform: Purpose-Driven Corporations (36:00–44:00)

• Advocates for a 21st Century Companies Act to reset the purpose and governance of British companies—companies must declare and report against a public purpose, not just shareholder profit.
• Suggests incentivizing long-term ownership by granting more voting rights to consistent shareholders and founders, and encouraging multi-stakeholder models (e.g., mutuals, public benefit corporations).
• Recommends tougher controls on takeovers, differentiation of company types (public benefit, mutuals), and restoring public or community ownership in key sectors if warranted.
• Quote:

  “Trying to put the company back on its feet so that it can reflect the nobility and genius of a great company is the most pro-business thing you can do.” (28:00, Will Hutton)

5. Financing and Innovation (44:00–48:00)

• Calls for interventions in the financial sector to support long-term corporate investment and R&D (echoing ideas he advocated in the 1990s, now partly adopted by Mark Carney at the Bank of England).
• Demands a serious national commitment to innovation—Britain should aspire to lead in cutting-edge fields like green tech, big data, advanced materials.

6. A More Equal and Flourishing Society (48:00–53:00)

• Tackles inequality, stagnating real wages, and the decline of unions. Cites failures in the education system—particularly stark educational inequalities.
• On education:

  “There are 80,000 kids at 15 who are entitled to free school meals. Only 20 get to Oxford and I simply don’t believe that all 80,000 haven’t got the intellectual equipment...” (52:30, Will Hutton)

• Argues for strengthening workplace voice, reimagining unions as co-creators of enterprise, and making education more equitable and opportunity-rich for all.

7. Re-Making the State and the Social Contract (53:00–56:00)

• Suggests further devolution within the UK (following Scotland), restructuring the House of Lords into a federal Senate, and changing Treasury priorities to invest in public goods.

• Critiques austerity regimes and tax-cutting as undermining public investment in essentials—justice, education, health, infrastructure.

• Quote:

  “Just civilizations try to protect notions of justice at their heart and we’re not doing that.” (55:39, Will Hutton)

Memorable Quotes and Moments

• On the need for change:

  “It doesn’t have to be like this... In a democracy, the collective will can be expressed to say let’s redesign [private institutions], let’s do something different.” (28:30, Will Hutton)

• On British neoliberalism:

  “The only thing that matters, ladies and gentlemen, is lowering the deficit, as you all know.” (54:50, Will Hutton, ironic)

• Hope for the future:

  “I actually think we could end the mercenary society, we could build a great country, how good we can be.” (56:10, Will Hutton)

Audience Q&A Highlights

On Translating Ambition to Practice and Revitalizing Regions (57:11–59:47)

• Gordon Tate (58:29): asks about how to bridge the gap between practitioners and academics. Hutton stresses the importance of purpose aligning teams (in contemporary companies) rather than single-inventor models.
• John Dean (59:22): asks about left-behind places like Rill, Clacton—Hutton acknowledges the scale of geographical inequality and suggests cooperative models and synergies with nearby conurbations, but admits there are no easy answers.

On Labour's Record and Political Will (58:40–59:47)

• Vincent Burke questions Labour’s complicity. Hutton admits New Labour did too little to reform capitalism and was “seduced” by the City, but notes political change requires mass public demand.

On Privatization, Ownership, and Renationalization (66:46–69:34)

• Paul McGrail & others ask whether asset sales were driven by fiscal need or distrust of British management; Hutton suggests ownership models (e.g., foreign family- or mutual-ownership) matter more than nationality.
• On renationalization: Hutton is open to public ownership where appropriate but focuses on reconstructing governance first.

On Inequality, Voting Age, Climate Change, and Moral Traditions (68:37–73:56)

• On inequality and German/UK comparisons (68:40): Hutton points to deep-rooted UK fairness but rising “caste-like” inequality—London’s extremes are not sustainable.
• On lowering the voting age (68:16 & 75:46): Hutton is open but not prioritizing (nor opposed), recognizing the arguments.
• On climate change (70:39): Hutton sees “purposed companies” (with mandated social/environmental goals) as a necessary part of the climate solution.
• On moral traditions (J at 70:56): Hutton finds inspiration in Quaker and Catholic social teachings, emphasizing the value of purpose and community in business ethics.

Important Timestamps

• Introduction by John Hills: 00:00–03:46
• Will Hutton’s Main Lecture: 03:46–56:24
  • Reflections and contemporary context: 03:46–14:50
  • The technological revolution and jobs: 14:50–19:00
  • The degeneration of company purpose: 19:00–36:00
  • Policy proposals for companies and ownership: 36:00–44:00
  • Financing, innovation, and smart economy: 44:00–48:00
  • Equality, education, social contract: 48:00–53:00
  • State reform and conclusion: 53:00–56:24
• Audience Q&A: 56:24–end

Tone and Style

Will Hutton speaks with urgency, passion, and an engaging mix of evidence and anecdote. He frequently draws on personal experience, humor, and rhetorical flair. His tone is progressive, reformist, at times indignant—but ultimately optimistic and constructive.

Conclusion

Will Hutton paints a picture of a Britain in need of profound change: addressing corporate excess, re-anchoring companies in public purpose, renewing innovation, investment, and social solidarity, and reforming public institutions. While warning against complacency and pessimism, he is clear that with ambition, new structures, and renewed social contract, Britain “could be the most dynamic country in Europe”—a message of hope and challenge as a general election approaches.

For more:
Will Hutton, How Good We Can Be: Ending the Mercenary Society and Building a Great Country (2015)