Or is this the beginning of what we will call ‘Austerity Anarchy’?
As a case study in behavioural economics goes, the last week in March 2012, in the UK must go down as a classic…
What sparked the ‘run on petrol and filling stations’ is not the aim of our analysis, but rather the deeper underlying cultural psychosis affecting Austerity Britain. However, the austerity is not driven by the current revenue expenditure austerity, but rather the culture of Investment Austerity over many decades that has created a supply chain time bomb in the UK.
There is generally a severe lack of investment in any form of storage capacity. Not as a risk management concept, but rather as a pure short sighted cost management issue.
Yes, land capacity is limited on a small (in places patchily overcrowded; especially down in the South East of England) island and the cost of owning a vast storage network must seem prohibitive; yet having so little risk management or rather ‘buffer’ and shock absorption capacity available must be the vast hidden opportunity cost ‘time bomb’ waiting to derail a sustained or sustainable short run upturn in the economy?
Hidden or in the economists parlance ‘Opportunity Cost’ is generally not an item on any policy maker’s agenda, yet in it lies the ‘unintended consequences’ element that so seldom gets factored into the equation. Yet opportunity cost highlights the risk element we have to factor in. And in this sense we use the word RISK in its proper intended format, namely a quantifiable probabilistic evaluation of the downside of a transaction. Yes, threats are more closely aligned to ‘unintended consequences’ and are the issues we can only subjectively be aware of, but cannot quantify with any degree of accuracy.
Hence, ‘Austerity Anarchy’ is what we believe an angst and siege mentally is, when decision-making (or rather calculus driven decision-making) gets ‘suspended’ and the irrationality of “mankind’s mind” and the mainstream misinformation distribution takes over, creating PANIC in Little Britain and the commentators at theMarketSoul ©1999 – 2012 ask themselves:
“I wonder to myself; could life ever be sane again?” – with thanks to The Smiths
- Don’t Panic! Don’t Panic! (1stepup2stepsback.wordpress.com)
- Fuel Frenzy: Petrol pump panic grips UK drivers (1oneday.wordpress.com)
- Petrol panic buying… Complete morons (nickspearing.wordpress.com)
- United Kingdom petrol panic over? (davidwestern.wordpress.com)
- Running on Empty: Petrol Panic in UK (markamerica.com)
- Gas stations close in UK after fuel panic-buying (seattletimes.nwsource.com)
- English police ask gas stations to close amid panic-buying (ctv.ca)
- | UK Panicking over petrol: The silliest country in the world! (truthaholics.wordpress.com)
- Anger erupts as drivers queue for hours in sweltering heat… and the strike hasn’t even begun yet! (dailymail.co.uk)
- Government under fire over panic buying of petrol (guardian.co.uk)