THE term “cost of living crisis” is used regularly now, and it is worth pausing to consider exactly what it means. In essence, it is used as shorthand for the perception that simple aspects of what many would consider “normal life” – such as groceries, housing costs, eating/drinking out, health expenses, trips away, clothes, local travel, and many other examples – have rapidly got to the point where their price causes – at least – a sharp intake of breath. The pressure that creates is pervasive, the threat is serious, and the effect on some people’s lives can be devastating.
It is the leading contender for the issue set to dominate the forthcoming election; but that does really beg the question as to what prospective politicians are actually going to do about it, and by implication, what is it that their predecessors haven’t done?
Is it something which we should look to the government to solve at all – or as argued, in part, on the preceding pages of this edition of the JEP, could government action actually make the situation worse by increasing the cost of public services?
Clearly, Jersey has limited levers to pull. It is not in charge of its own currency, has no influence over interest rates, zero natural resources and needs to import almost all of its goods; there is obviously a shortage of land and of some skills.
But having said all that, the government is not powerless, as proven by the fact it has a Ministerial Group looking at this very topic – surely, they are not there in name only?
We’re told the last time they met was early November, when they discussed minimum income standards, the Better Business Support package, and the outlook for inflation; they apparently get together every six weeks, with more regular updates by e-mail.
Given the obvious importance of this topic for islanders, it should be set out before the end of this administration what actual steps have been taken to reduce daily living costs for islanders; and to complete the picture, where is it accepted that government actions have played a role in pushing them up?
It’s also important to differentiate between providing help by actually reducing costs, and providing help by giving more financial support – while both may be welcome in the short-term, the long-term effect of increasingly expensive public services obviously needs to be considered, too.
Ultimately, real prosperity needs to be created by our economy; the answer seems both as simple, and apparently as difficult, as that.
