I have an O level in Economics. I got this in 1980, one year into Thatchers reign of terror. We were taught different models of economic theory. I can’t really remember much about them and would make myself look a bigger fool than I am already, if I started to expand upon them. It was the first time however that I came across the market. The market could determine the price of something based on its popularity or the demand for it. Market forces would dictate the value of it and set the price. That’s as deep into economics that I’m prepared to go as I’m now beginning to make an even bigger fool of myself than I promised I wouldn’t.
Scroll forward 42 years. We in the UK are in a bit of a mess. Inflation is running at 9%, oil and gas prices to retailers have shot through the roof and we have a government reluctant to step in. They prefer to rely on market forces. Does that mean they are happy to wait until demand for certain items drops so much, the value also drops? When we can’t afford certain things do we just buy less. Scarcity is a determining factor in the price of goods. Diamonds and gold are scarce so they have a higher value than more available gems and metals. The markets however are also affected by other factors. They are driven by fear, rumour, political events, greed. Those with the most money wish to keep hold of it while allowing those with the least to burden the cost of living increases. The belief that wealth is equal to hard work. This mentality was propagated during the Thatcher years. There is no connection with wealth and how hard someone works. A low paid worker in a supermarket, working full time hours and overtime does not work less hard than a city trader working the same equivalent hours. Yes, people are paid according ability, qualifications, experience but not how hard they work. You cannot say you are rich because you work harder than a lower paid person. Wealth brings entitlement, detachment and skews the view of the the world in which they live. The wealthy live in a smaller world because generally, they associate with other wealthy people. They may have come from humble backgrounds but the minute they have more money than they would ever need, is the point at which they become detached from the rest of us.
I don’t resent wealth. I recognise that society will always have different socio-economics levels. Market forces however never seem to put value on the basic roles that keep our society functioning. A delivery driver, a street cleaner, a warehouse worker are all as important as a surgeon, an investment banker and a barrister. Market forces should value each one according to their importance. A barrister is not more important than a delivery driver if you don’t have enough drivers to deliver whatever needs delivering.
What if we stopped focusing on the market? What if we decided to base the cost of goods and services on what is fair? Ok, who decides what’s fair is a reasonable question. What if we chose to focus on what we need rather than what it’s worth. Fuel costs are unsustainable at the current levels and at some point, consumption will reduce. At that point, the oil producers will just make more and the price will drop. A loaf of bread will get so expensive, the consumption of bread will slow. Someone somewhere will decide to jump off the upward spiral of market forces and charge a reasonable price for their goods. This might then create a ripple which would drive down prices and ease inflation. It takes bravery on behalf of those first pioneers who are not prepared to be swayed by fluctuations in the world markets.
Our spectacularly incompetent government have created many of these issues, driven by a xenophobic, insular need to leave Europe. They sold a lie to the electorate and they are still not being held accountable for that. The pattern of power is that it does indeed corrupt. The longer you are in power, the harder you cling onto it. You create systems that protect your power and prevent change. You trust only those who agree with you and mistrust everyone else. Putin is a fine example of this. He is currently experiencing the effects of market forces but I suspect not personally. He is prepared to watch his people struggle as long as he is ok.
Market forces are volatile, unpredictable, delusional. Because money markets panic over events, we all suffer. The value of stocks go down because there’s a rumour. This rumour may have no basis in reality but because now this rumour has been passed on, it’s gained value. Headless chickens in the City of London begin to run around because their fellow headless chickens in Tokyo, Wall St and Frankfurt have also been doing some serious running about. And when all is said and done, a litre of diesel costs 50% more than it did six months ago. When will we ever structure our society on what is fair instead of how much is everything worth? I wish for stability, ethical practices and collective need. The world cannot sustain its reliance of fossil fuels and we have to do something about that. I just wish these are not excuses for someone to exploit the customer into paying more for that which they need. I don’t think we should return to a more basic existence. We know more and we are capable of doing right. We have the brains, the technology to improve the lot of society while not expecting those who can least afford to, having to pay for it.
Wouldn’t it be refreshing to live in a society where those with the most wealth, are prepared to pay in taxation, their fair share. Wouldn’t it be good if we worked collectively as opposed to in confrontation with each other. Wouldn’t it be great if we didn’t rely simply on the cost of everything being decided by those who have no need to worry about it.
The John Linney 