Let me just give you one example that I think is incredibly simple, and I love. We want to get people to be more energy efficient. Why? It cuts fuel poverty, it cuts their bills, and it cuts carbon emissions at the same time. How do you do it? Well, we've had government information campaigns over the years when they tell you to switch off the lights when you leave the home. We even had, one government minister once told us to brush our teeth in the dark. I don't think they lasted very long. Look at what this does. This is a simple piece of behavioral economics. The best way to get someone to cut their electricity bill is to show them their own spending, to show them what their neighbors are spending, and then show what an energy conscious neighbor is spending. That sort of behavioral economics can transform people's behavior in a way that all the bullying and all the information and all the badgering from a government cannot possibly achieve. Other examples are, recycling. We all know we need to recycle more. How do we make it happen? All the proof from America is, actually, if you pay people to recycle, if you give them a carrot rather than a stick, you can transform their behavior.

So what does all this add up to? Here are my two favorite U.S. speeches of the last 50 years. Obviously, here we have JFK with that incredibly simple and powerful formulation, "Ask not what your country can do for you; ask what you can do for your country," an incredibly noble sentiment. But when he made that speech, what could you do to build the stronger back of society? You could fight for your country, you could die for your country, you could serve in your country's civil service, but you didn't really have the information and the knowledge and the ability to help build the stronger society in the way that you do now.

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