Moon of Liberty Editorial
Reflections of the Moon
It’s up to customers to create the market
This week British Gas announced a 12.5% electricity price rise despite low wholesale costs. The excuse was the same as always, they but in bulk, plus they argue they held off previous price rises unlike other companies. It’s funny of course how we never get price reductions because traders who buy in bulk bought too low in advance. The left, and increasingly many in the Tory party, seem to think intervention is the answer, there is no market they argue. Theresa May has even launched an investigation this week.
Well actually, there is as anyone who has listened to the excellent Martin Lewis and frankly any other expert on it who is willing to help the consumer will explain, there are plenty of options out there, mainly relating to switching and often to smaller suppliers. The ‘Big 6’ as they are known ultimate rely on loyalty and the fact consumer cannot be bothered to switch.
It’s understandable, many people do not know how easy it actually is to do so. If millions switched to smaller companies tomorrow, the Big 6 would have to act. We saw an example of this and how it can work a few years ago when Opus Energy reduced their prices and took some market share with it. It panicked the Big 6 into rare price reduction they had no intention of making.
In the end however it is for consumers to create the market. Too many remain loyal when they have no reason to. State intervention is not the answer, the much maligned, wrongly in my opinion, free market is the answer. The public are the ones who can take advantage of it, if they don’t, don’t expect state intervention to be of any use, in the end, it won’t.
The Trump administration needs to focus on policy
The US congress has gone into recess with Shaun Spicer, Reince Preibus and Anthony Scaramucci all gone from the Trump administration. The administration is in danger of becoming, it it has not already, all about personalities and not about policy, which in reality is where it is strongest.
Whether it be decisive steps against the horror going on in Venezuela, a regime scarily, Labour Leader Jeremy Corbyn here in the UK seems to continue to back. Or it be getting unanimous agreement in the UN for sanctions on North Korea, or it’s agreement with a Japanese firm to create a large factory and thousands of jobs in Wisconsin, a key state Trump would need to hold if he stands again in 2020, there are areas where this administration actually has a better story to tell than many may think.
Can anyone get a grip on this crazy administration before it spirals out of control and get the President back on the front foot? It appears now to be in John Kelly’s hands as the new chief of staff. For the administration to succeed he needs to be a success and there a while, not another notch on the ‘you’re fired’ list.