There was once a time when everything was cheap.
But now prices almost puts a man to sleep.
When we pay our grocery bill,
we just feel like making our will.
Tell me how can a poor man stand such times and live?
This American folk song was written and composed in 1929 by Blind Alfred Reed and has been adapted by many, most recently Bruce Springsteen, in a savage critique of the Bush administration’s woeful response to Hurricane Katrina’s devastation of New Orleans. The original song tells of hard times during the Great Depression and is considered an early example of a protest song; these days there is seemingly still plenty to protest about.
Merry Christmas!
For example, unless the Chancellor pulls an unexpected Christmas present from his sack in the November statement, in January diesel and petrol prices will rise by 3p a litre, the result of the fuel duty escalator duty brought in by the last Labour Government. A recent vote in the Commons to suspend this to next April – as if that really solves the issue that families will face – was defeated comfortably. The Treasury argues that they really are the good guys here, in that prices are some 10p cheaper than they should be, had the original escalator been adhered to. To add to the confusion, some believe that recent falls in wholesale prices have not been fully passed on at the pump; who’s kidding who? Either way, pay up Mr Motorist!
Of course, not all MPs were present to vote for a variety of reasons; Ms Nadine Dorries, is actually on paid leave – plus an additional estimated fee of £40k – tossing it off in some part of the Australian jungle with a group of other nonentities. Claiming that she was trying to bring politics to the masses – “Yeah. That’s one of the reasons why I’m here. Sixteen million people watching this show. That’s how politics should be.” – presumably she may be hoping to teach hard up families how to feed the kids on live bugs for the winter as food prices continue to rise? Try skipping off unannounced from your job next week and see what the reaction is? “Cook With Nadine” coming soon to Channel 5…you heard it here first.
How Many Traders Does It Take To Fix A Light Bulb?
Energy companies are also once again in the spotlight, having must have thought that they had weathered the usual autumnal storm with their recent annual price hikes, announced as ever, almost in unison. Nobody, least of all with my meagre legal means, would claim any commercial collusion here but it does puzzle many of us that the price increases always seem to precede the onset of winter, the main period of peak usage. And so comforting to see Angela Knight, previously spokesperson for the British Bankers Association, now defending Energy UK – the Trade Association for the energy industry – this woman could defend blind dog fighting in Mexico with conviction.
A weak regulator and a toothless Government effectively mean they can do as they please; so in a supposedly advanced nation, millions of pensioners are not sure how they will keep warm this winter. News of prices being fixed on the commodities markets, leaked by a whistle blower, will surely reignite this debate but expect little but the odd hand slapping. The free market may be fully operational, but in the case of the energy sector, its clear this is not for the wider good.
Just in case you thought about nipping out for a comforting pint beware of yet another duty escalator waiting to cheer us all up; the beer escalator has seen beer duty increased by over 40% since 2008. Set at 2% above inflation, if it is maintained then expect another 10p on the price of a pint next Spring before any brewery price increases. Once again this is another of New Labour’s legacies which the current Government seem unwilling to dismantle, presumably for fear of having to seek some proper tax from those nice people at Amazon, Google and Starbucks.
Give Us A Break… Well A Big Tax One Actually
Although all three companies got a fearsome roasting from the Public Accounts Committee (PAC), chaired by Margaret Hodge, MP, in truth, they only sent faceless underlings to cop it, knowing full well that the cosy relationship between big business and Government would continue. It may have been a public caning but how much will really change? Could you really credit any of them, as they all claimed how poorly their multi-billion pound turnover businesses were doing in the bad old UK?
How can you not make a profit from selling coffee at more than the price a pint of duty escalated beer? The Starbucks man claimed they had not made a profit in the UK in fifteen years and he kept a straight face as well; his performance was Oscar material and made the Murdoch family’s memory lapses at the Leveson inquiry look almost am-dram. Really, how many US businesses operate at this sort of scale for so long and tolerate losses? Its panto time again!
Power To The People…where Is Cliff When You Need Him?
Of course the only way to really hit these businesses hard is simply to stop using them. Consumer power is the most potent thing on the planet as far as big business is concerned; but we are urged to go steady on them, warned that they may simply turn their backs on the UK, just like we were told there would be an exodus of bankers to safer, more discreet, less hostile countries…like those hot spots of Luxembourg and Switzerland. There is more chance of Hugh Hefner joining a monastery than international bankers flying off in their thousands to the land of the clock maker and assisted suicide; I would have included something about Luxembourg but, apart from winning Eurovision once, I could not think of anything. Would society really implode without Starbucks coffee?
The consumer is king to global brands like the three in the spotlight and the UK market is simply too big for them not to sit up, take notice and send somebody important to the next PAC, even if it is just to allow some minor politicians to grandstand for the cameras. How about using Social Media to create a co-ordinated boycott of all three, taking place in December and hitting them all at the peak of the consumer spending splurge? There is no way they could do anything else but sit up and take notice. Take a month off from surfing the web, use the High Street instead of Amazon and buy a coffee at the local independent – it will be cheaper and better.
Slick Tony And Fatty Two Jags
Evermore, ordinary people are left wondering what is really going on. In the same week a man, clearly unfit for purpose in one of the biggest jobs in the media, walks away with a £450k pay off from the public purse, the majority are left facing yet more increases in the cost of everyday necessities. This week some of us went to the polls to elect the new Police Commissioners, another gravy train appointment – £80k for what – neither wanted nor understood by the majority of people; the turnout as predicted, was abysmally low for a modern democracy. I checked my candidates and had not got a clue who they were nor what they were bringing to the table, bar three out of the four being puppets for the mainstream parties. At the time of writing I dare not look if old Fatty Two Jags is lording it over Humberside again.
And the most sinister example of the complete disconnect between politicians and the people? Surely it has to be the continuing tragic waste of young lives in Afghanistan whilst the main protagonist makes millions on the international circuit; sun-tanned, slick, without a care in the world peddling his wares to the highest bidder. Riding to power to the tub thumping “Things Can only Get Better” way back in 1997, they certainly did for Tony. As for the rest of us?
Have a nice weekend!
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