Article
Comment
Economics
Politics
Trust
5 min read

Tariffs destroy trust so where do we go next?

Blunt weapons cause a mess in markets and lives.

Paul Valler is an executive coach and mentor. He is a former chair of the London Institute for Contemporary Christianity.

A gold coin with the DOGE dog on it, lies over the face on a $50 bill.
So doge-y.
Kanchanara on Unsplash

‘When America sneezes the rest of the world catches a cold’ quipped economists almost a century ago after the Wall Street crash.  A comment that might equally apply to the more than 10 per cent drop in stock markets caused by President Trump’s sudden raised tariffs on imports to the USA.  The impact of the American economy on the world is inescapable.  It represents almost a quarter of global GDP and the dollar is the leading reserve currency, accounting for around 60 per cent of international foreign exchange reserves.  Size is what enables America to bully the rest of the world. 

For decades the American trade deficit has been an elephant in the room and Trump is to be applauded for recognising it and addressing the problem. Unfortunately, the way he has gone about it has caused another, bigger problem. Changing the direction of the global economy is like turning a tanker, it cannot be done easily or quickly, but Trump’s style is to attack, like hammering at a nail.  Every issue in geopolitics looks like another nail, waiting for him to hammer out a negotiated deal.  Full marks for courage, but not for wisdom. The blunt weapon of trade tariffs is designed to bring wealth and power back towards the USA, but blunt weapons often cause a mess, and sure enough a global mess is what we now have.  A US/China trade war with higher prices that could end up stoking inflation and a government own goal.   

Panic selling of government bonds signalling a loss of confidence following Trump’s dramatic tariff boost is reminiscent of the impact of Liz Truss’ sudden and radical UK tax cuts, which were also driven by an ideology, but ended up as a wrecking ball.  Even some of Trump’s backers have warned of an economic nuclear winter.  In the long run, Trump has done the world a favour by highlighting a structural issue that needed correction, but his economically violent methods of addressing it look increasingly unwise.  If a global depression does happen on the back of all this, then coupled with the rise of autocratic and belligerent leadership, we would face a worrying parallel to what happened in the 1930s when the world eventually slid into war.   

Tariffs are like walls, barriers to cooperation and the epitome of economic selfishness.  Make America Great Again is selfishness writ large - a society pursuing wealth and power without the cohesive framework of values that are so essential to cooperation and community wellbeing.  A psychology of self-centredness that damages relationships at the national level.  This is what I find most concerning about Trump’s approach; not just the economics but the long-term legacy of relational damage that could last well beyond his Presidential term. 

Our fears reveal just how much we trust in wealth above everything else, and how much the fear of scarcity affects our mental health.

Michael Schluter in his book The Relational Lens defines five principles, or measures, of relational health.  They are directness, parity, common purpose, continuity and breadth.  Applying those five measures helps us see why Trump’s tariffs are the polar opposite of relational.  He introduced these escalating penalties remotely and not in face-to-face negotiations.  Exploiting the power of America instead of showing respect for the status and needs of other nations.  Tariffs have no common purpose with other countries, only a selfish agenda.  There is no continuity with previous trading protocols.  And it is all purely financial, with no reference to the broader holistic impact.  All in all, a relational disaster.   

Despite living in the ‘first world’ we remain gripped with fear of loss.  Our fears reveal just how much we trust in wealth above everything else, and how much the fear of scarcity affects our mental health. Markets are not entirely rational; they are driven by algorithms that stem from this psychology of greed and fear.  Emotions and trading swing wildly with a herd instinct that often drives behaviour.  As Rabbi Jonathan Sachs said:  

‘Markets have no moral compass; we have outsourced morality to legislation by the State.’   

But the worry now is that the current US administration shows signs of ignoring morality and even riding roughshod over the courts.  No wonder people feel afraid. 

Where can we find hope in all this turmoil?  Is there a better response than gritted teeth and the mantra: ‘this too shall pass’?  I think so.  There is life beyond the market.  Jesus said: ‘life does not consist in an abundance of possessions.’  We can choose to step back and look at all this with the true perspective that money isn’t everything.  We can cultivate gratitude for what we do have.  We can learn contentment.  Yet I feel for those who have experienced financial loss, and don’t want to minimise the reality of hardship.  In fact, something important and practical all of us who are privileged can and should do is to be vigilant in watching out for those who are poor and disadvantaged.  To look after those with a real need for the basics of life and help them through this tough time when economic disruption could make life even harder.  For those with a faith this is part of working out how our faith makes a positive difference where we are. 

Perhaps the supreme irony of this crisis is President Trump’s insistence that Americans must trust him.  Ironic, because the one thing that his tariff actions seem to have undermined more than anything else is trust.  The trust that is essential to the functioning of both markets and civilisation as a whole.  Face to face discussions must be the way forward now, to rebuild trust and find more nuanced, mutual approaches to solving America’s trade deficit.   

There is one person we can always trust though, and his name is written clearly on the American One Dollar bill. In God we trust. Let’s pray that Trump and his America returns to that imperative and turns back to a more Christ centred philosophy of loving our neighbour as ourselves, reflected in a more bilateral approach to diplomacy and agreement.

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Article
Comment
Identity
6 min read

Identity is more than mere branding, ask WH Smith

It's not just nostalgia that's being generated by the retailer's demise

Roger is a Baptist minister, author and Senior Research Fellow at Spurgeon’s College in London. 

Cyclists and pedestrians pass in front of a WH Smith store front.

So, alas, no more WH Smith on the British High Street. Then, to add insult to injury, the chain of shops will be rebranded by the private equity firm, Modella Capital, as TG Jones. A move to ensure the stores retain “the same sense of family”. 

Really? 

I was surprised. Not by the news. We’ve seen so many once famous names disappear, another one is hardly noteworthy. But no, I was surprised by my reaction when I heard. 

I’m not quite sure what the emotion was. It nestled somewhere between 

“NO!” 

and, 

“They can’t be serious!” 

Somewhere between warm-hearted nostalgia and gob-smacked incredulity. 

I have loved Smith’s since forever. As a boy, in a small market town in Norfolk, the kiosk at our railway station was where I went to buy my Commando war story comics. As a teenager it was the music and video department I frequented. Then, newly married it was photo albums followed by all the school supplies of pencil cases and folders our growing family needed every August. Our memories exert a powerful influence on us. 

But the nostalgia goes deeper than that. It is a British institution. WH Smith and Sons, as I originally knew it, began life in 1792 in a news vending shop established by Henry and Anna Smith in Little Grosvenor Street in London’s Mayfair. 

Their grandson, William Henry (of the WH) joined the firm as a partner in 1846 and was responsible for their expansion through railway stations. Taking advantage of the boom in rail travel their first news stand was opened at Euston Station in 1848 by securing exclusive rights to operate with North Western Railways. This was swiftly followed with a similar deal with Midland Railways. 

Across the years innovative entrepreneurship has been part of who they are. They pioneered wholesale warehouse distribution through their sites in Birmingham, Manchester, Liverpool and Dublin. 

Then, along the way, in 1966 they introduced a 9-digit code to improve their book reference system. Eight years later their Standard Book Numbering (SBN) system had been universally adopted as the internationally recognised ISBN classification on the back cover of every published book. 

Their company history also includes novel initiatives like a circulating library, a travel agency, the DIY chain Do It All, a 10-year ownership of Waterstones, satellite TV with their own sports channel in the mid-1980s, and more recently, in-store post offices and the online personalised greeting card brand, Funky Pigeon. 

Smiths is a company that is deeply embedded in the life of our country. It’s deeply embedded in my life story too. Of course I’m going to feel nostalgic about it. But, do you know what, I can’t remember the last time I went into one of their iconic shops and actually bought something! 

And that’s probably it, at least in retail. Any nostalgia on my part is, at most, only of the wistful variety. 

As important as our personal history and heritage are in helping us understand ourselves, life is provisional, and our identity can change. 

While the High Street shops do remain a going concern, it is their travel hub network in airports across the world that make the serious money and will retain the WH Smith branding. Hence, the change of name to TG Jones and the source of my “gob-smacked incredulity”. 

Now it is easy to understand how a move from WH Smith to TG Jones makes a lot of sense. Modella Capital were swift to affirm that it is “business as usual”. All the stores will remain open, doing what they do now, with all the staff retained. Two initials and one of the most common surnames is replaced by two initials and one of the most common surnames. 

Now the juxtaposition of Smith and Jones is very tempting in its offer to reference specific 1970s or 1980s TV shows. From a marketing perspective it is so cheesy, at least to anyone over 60. But to put that aside: what is in a name? 

WH Smith is a 233-year-old company and remained in the hands of the family until 1972. It has a heritage that has real substance behind it. It is the genuine fruit of all that has gone before. TG Jones is a fiction. A necessary invention to fill the gap, to provide a new name in place of an original that has migrated elsewhere. As Charlotte Black, chief strategy officer at Saffron Brand Consultants observed: 

“It feels incredibly close, a poor mirror of WH Smith and not necessarily very well thought through … I would say it feels hasty – an ‘insert here’ strategy – and a bit of a missed opportunity.” 

Ultimately, it’s about identity. Superficially it appears that a genuine history is being supplanted by pure fabrication. Any “sense of family” in TG Jones is vacuous because TG Jones never existed. There is no back story. 

WH Smith, on the other hand, does have a back story. Yet, having been a company run by shareholders since shortly after the second world war, how real is the “sense of family” there either? This is not the proverbial ‘mom and pop’ store. It is actually a corporate leviathan. There might be a sense of rootedness in the name, but a “sense of family” disappeared a long while ago. 

Now, with the name gone, the High Street shops have even lost that sense of rootedness, however tentative it had become. Where does that leave their identity? I’m sure the branding consultants and marketing departments have been all over this. However, identity is not established just by saying that something is so. 

Thinking about Smith becoming Jones then sent me down a rabbit hole of thoughts. So, bear with me here. 

We all know about identity because we all have one. 

At any given moment in time we are the product of a complex interplay of things. From our families and where we grew up, to the choices we’ve made and those that are foist upon us. The experiences we’ve had shape us. They make us into the people we are and help define our identity. 

Yet nothing is set in stone. There is something intrinsic to life that is dynamic, ever-changing and open to all kinds of possibilities. It is dynamic and multi-dimensional and alive to endless possibilities. 

In this sense, life is not deterministic, and our identity is not fixed. How we see ourselves and how others see us can change. As important as our personal history and heritage are in helping us understand ourselves, life is provisional, and our identity can change. 

That change can be evolutionary or revolutionary, it can come from inside ourselves, or result from our responses to what comes at us from outside. Life is a constant process of becoming who we are. Our choices matter. They have consequences. Nothing stands still. 

The possibility of turning life around, the opportunity of making fresh starts and hopeful visions for a better future have proven to be the bedrock of human resilience. The essential ingredients to ‘pick yourself up, dust yourself off, and start all over again’, to quote the famous 1930s standard. They’re also foundational insights that underpinned what Jesus stood for and taught. Proven across the range of human life, activity and ingenuity 

But back to TG Jones, I think I’m with Charlotte Black, the renaming is hasty, ill-thought through and a missed opportunity. Maybe the name will go the same way as Royal Mail’s abortive makeover as ‘Consignia’ in 2002. Identity is more than branding; we will know it by its fruit. 

In the meantime, when the new regime has established itself, I may swing by to see what they’ve done with the old place. 

Celebrate our 2nd birthday!

Since March 2023, our readers have enjoyed over 1,000 articles. All for free. This is made possible through the generosity of our amazing community of supporters.
If you’re enjoying Seen & Unseen, would you consider making a gift towards our work?
Do so by joining Behind The Seen. Alongside other benefits, you’ll receive an extra fortnightly email from me sharing my reading and reflections on the ideas that are shaping our times.
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