We need a Vicar of Trumpington to cure the delusions of our leaders

In the Telegraph, Charles Moore writes, “Will politicians ever realise that they can’t fix prices?”

The article begins with an anecdote to which I can relate:

When I was about 12, I thought like Rachel Reeves. “Prices are going up too much, so why,” I asked my parents, “don’t we just stop them going up?”

I cannot remember their answer, but I now know what my problem was. I did not understand what a price meant. I thought it was an order from on high (which, in dictatorships, it is). Only gradually did I come to understand it was something infinitely more subtle. It is the result – the signal – of an agreement made between someone who wants to sell something and someone who wants to buy it.

The equivalent “Why don’t we just” moment in my childhood occurred when my parents were moaning about lack of money. Less polite than the young Master Moore, I stamped my little foot and said, “If you haven’t got enough money, go to the bank and get some more.”

I blame fairy stories. I don’t recall ever believing in dragons, but I think I did believe that a Good King (or rather a Good Democratically Elected Prime Minister; I was that sort of kid) had but to say the word and there would be no more poor. I was pretty stupid for a clever seven year old. Our present Democratically Elected Prime Minister is sixty three.

After a brief explanation of what market signals are and how very bad things happen when people distort them, Mr Moore continues,

In my youth, most British politicians of both parties thought in my childish way. In 1972, Ted Heath’s Tories, shocked by the inflationary effect of the artificial boom their own policies had created, intervened to stop the merry-go-round. The Government’s Counter-Inflation (Temporary Provisions) Bill created a Price Commission and a Pay Board. All price rises were frozen for 90 days. Only one Conservative MP, Enoch Powell, voted against this profoundly unconservative measure.

Geoffrey Howe, later a great free-market Chancellor of the Exchequer, was Heath’s minister for consumer affairs. As such, he was the enforcer of every single price control. The utter absurdity of this was brought home to him when he was informed that the Vicar of Trumpington had doubled the charge for brass-rubbing in his church during the freeze. It was part of his job as the relevant Cabinet minister to prevent even that.