Wednesday, July 30, 2008
Worse Than The Seventies
In the last four years, domestic gas prices have risen by c 80%. But that reading was taken before the latest round of price hikes, and certainly before today's jaw-dropping 35% whack from British Gas. Taking account of them, prices will by now have doubled in less than five years.
Short of WW3, we used to think things could never get worse than the seventies. But we were wrong: it took seven years from 1972 to 1979 for gas prices to rise by a mere 86%.
And compared to the present incumbent, it turns out Grocer, Wislon, and Sunny Jim were political colussi.
If only we'd known at the time.
PS Even amidst all the sharpening of knives, we're still hearing claims that Gordo was the best Chancellor we've ever had. The reality is that he was the jammiest Chancellor we've ever had. He had the great good fortune to take over during a period of extraordinarily benign global economic conditions. And energy and commodity prices played a crucial role in remaining very subdued. Indeed, during his first five years, the index of sterling commodity prices fell by over 30%. In the last twelve months alone that same index is up by nearly 30%, and it's this pitiless reversal in global conditions that has exposed his ramshackle economic management for the fraud it always was.