Article

Character

Comment

Sport

7 August 2024

4 min read

When medal mania strikes

What turns a healthy motivation to excel into a toxic desperation to achieve?

Paul Valler

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

A defeat fencer, withour a mask, turns angrily and roars.

Sandro Bazadze loses and loses it.

The brilliance and joy of medalists in the Paris Olympics is incredible to see. Their discipline and sacrifices in training pay off in mesmerising displays of excellence and moments of pure elation. Yet for there to be winners, there also must be losers, and there have been revealing moments of crushing disappointment which are never nice to see. Sadly, Sandro Bazadze, world number one in fencing, could well go down in Olympic history as ‘the distraught loser who lost it’ in a furious rant at the referee as he was eliminated in the last 16 of the men’s sabre. What is it that makes some people explode like that? What is it that changes a healthy motivation to excel into a toxic desperation to achieve? What is it that changes a human being who is fully alive into an anxious person, so driven to succeed that they cannot bear to fail?

That is likely why Bazadze erupted. When he was denied success, he was denied who he thought he was.

Few of us will achieve Olympic greatness, or the media recognition that redefines an athlete’s profile by forever linking their name to their achievement. But we all have an inner tendency to believe that our value is based on what we can achieve. We live in a culture that continually sends us the message that approval and worth depend on your results. Many of us believe it, and then fall for a life of continuous intensity - a ‘cycle of grief’ as we fiercely strive for results, but mourn the loss of our inner peace. And this cultural message of acceptance through achievement becomes really toxic when we begin to believe the lie that our identity is based on our performance. That is likely why Bazadze erupted. When he was denied success, he was denied who he thought he was. “The referees have killed me”, he exclaimed.

It’s not just athletes who are at risk from this. Think about how our education system sends the same message about grades. Thousands of teenagers suffer anxiety and mental illness as they face exams, because they believe their self-worth depends on their marks. As GCSE results are published this month, thousands will be congratulated, but some will become depressed from failure.

I know many workplaces where ‘performance management’ has become so oppressive that it leads to drivenness, perfectionism and burnout. Even retirees can feel driven to complete their ‘bucket list’ before they die or become infirm. So, people in all walks of life easily become addicted to the treadmill of ‘performance-based living’ and feel tired, trapped and troubled. Labouring under the false belief that self-respect depends on achievement. If you believe that, you cannot fail or even be ill without feeling deficient.

There is a deep peace in that. A freedom and resilience that makes it possible to compete without fear of failure.

There is a better way. We can choose to renounce that pernicious lie of a performance identity and affirm the deep truth that our real identity and significance is found in who we are as God’s much-loved children. We can anchor our emotions in the security of that true identity. If Bazadze had really understood and internalised this, he would still have been disappointed with the judges decision, but not destroyed by it.

It is possible to decide to face up to the mania for results and our culture of continuous intensity. That is what Sabbath is about – an act of resistance against a world dominated by the need for success. God knows we need a break, not only to rest, but to recentre our hearts and minds on the truth. We are loved unconditionally and don’t need to strive to achieve in order to be accepted and significant to God. There is a deep peace in that. A freedom and resilience that makes it possible to compete without fear of failure. In the Bible, the word excellence is never applied to achievement, only to character, and the most excellent way is defined as love. The Christian worldview celebrates great performance, but avoids making an idol of it, because that leads to a destructive obsession and to insecurity.

Being secure in God is not about avoiding competition or pressure. It is learning to pursue outstanding attainment free from any sense of our identity being stolen by our grades, or jobs, or whether other people approve of us or award us medals. Top quality performance is superb and we should give our best with all our heart whatever we do. But God is a God of grace, who loves, accepts and dignifies everyone unconditionally, including those who didn’t even qualify for the Olympics, just as much as those who were on the rostrum.

Explainer

Comment

Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence Fletcher is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.