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Economics and the Hershey Bar

Yesterday began as a cold rainy Friday ingredients, as it did 49 years ago, to
for me when I got out of bed hungering make the same Hershey bar, the candy is
for, of all things, a Hershey bar. It considered to be worth 1500 percent more
must have been the sudden intense craving now than then. Is this because the price
for that yummy chocolate taste that of sugar, chocolate, and the other
caused me to get quickly dressed, grab my ingredients in the bar have substantially
wallet, and, with an umbrella, walk the increased? No. The price of the
oft-beaten one block route to the ingredients haven't gone up that much,
neighborhood convenience store. There I not 1500 percent. Candy makers can
found the traditional black and white currently buy their ingredients wholesale
packaged candy displayed prominently and not pay but 10 percent more than they
among its many rivals crying out, "buy paid in 1960. The overall cost of
me, buy me." So I grabbed one and rushed producing the candy hasn't gone up more
hungrily to the checkout counter to than 25 percent.In relation to the
discover that the small bit of chocolate pencil, you can clearly see that the
for which I, as a child, paid 5 cents was content and basic quality of the
now 79 cents. But as I was suddenly Ticonderoga Number 2 is the same as it
exasperated by the retail price of the was in 1960. The cost of producing it
item, I found myself pulling out a dollar might have possibly increased 5 percent
bill, handing it to the cashier, and or less. But the popularity of the
getting back my 21 cents in change. As I pencil has not increased as much in 49
walked out of the store tearing the paper years as has the Hershey bar. The candy
off the chocolate bar, it dawned on me maker knows that people enjoy eating
that even if the candy had been a dollar, candy more than using a pencil. That is
I probably would have still bought it.But why countless millions of dollars are
isn't that the way the free market works spent by candy companies each year to
to regulate our lives according to the advertise their quickly consumable
arbitrary values set by private industry? products. They know that the American
Perhaps the current 4.9 percent public will pay 79 cents for a Hershey
unemployment rate in America may be bar even if it is really only worth
defined and understood better by taking a perhaps less than 20 cents. Yet, while
snapshot of the rise and fall of everyone can't eat candy because of
arbitrary values, or the prices set on health concerns, the whole American
the things the American people hold dear. population uses pencils. However, I
As far as the Hershey bar is concerned, can't remember the last billboard I saw
approximately 6,000 employees currently advertising pencils, though you can
labor year-round in Hershey, Pennsylvania probably find at least one in every
to produce the same type of candy that American home, school, and office.
was made nearly 80 years ago by Milton S. What does this have to do with the
Hershey. Supposedly, the quality and current unemployment crisis? Well,
quantity of the original Hershey American capitalists are driven by the
chocolate bar has not changed over the profit motive to produce and deliver
years, but the price sure has.When I was their products. This is the amount of
a young boy, I regularly collected money they get for a product after the
soda-pop bottles from alongside the cost of producing it is subtracted. The
county roads in East Texas. People then high point of American capitalism is
would ordinarily buy Dr. Peppers and finding the maximum cost for which a
Cokes in the ten ounce glass bottles, product can be offered which will be
drink them while driving, and throw them accepted readily by the consumer. In the
from their cars into the high uncut same way the cost of something can be
grass. This was to my benefit, because artificially raised in order to increase
in an hour's time I could find ten or profits, the number of employees it takes
more of those bottles and sell them back to produce the product can be arbitrarily
to grocery stores for their deposits, decreased for the same reason. For
then 10 cents per bottle. With my instance, the high rate of unemployment
pockets bulging with dimes and quarters during the Great Depression occurred even
at the end of a summer day, I would pay a though the production of essential
visit to the candy case of my local products throughout the nation continued.
store. With the dollar or more I had The stores continued to sell these
made from the bottles, I would go away products even though there wasn't as much
from the store with ten or more Hershey, international trade. The wealthy people
Butterfinger, or Mars bars in a paper in the country, the ones with money to
bag. That's when candy bars were 5-10 spend, continued to live their lavish
cents each during the 1950s and 60s. At lifestyles. A certain percentage of the
the current selling price of 79 cents, a workforce was retained in order to secure
Hershey bar, with the same size and this level of production. Had the
content of the bar produced in 1955, has production levels been arbitrarily
increased 1500 percent in value. Does increased by the corporate CEOs at that
this surprise you, or are you willing to time, unemployment would have been
casually say, "what's the difference? substantially reduced.Presently,
Everything goes up in price and I'd buy government employment is increasing way
it if it were a dollar."The poignant above the private sector. What this
question festering in the back of means is that the executive branches of
everyone's mind, whether they want to the federal, state, and local governments
admit it or not, is, "did the price are using tax money to pay an expanding
really have to go up if the quantity and number of salaries. While tax revenues
quality of the product are the same as are not earned, but collected from
they were in 1955?" The answer is one taxpayers, the private sector is
that almost all hard-nosed capitalists essentially paying for the continued
would rather not care to expound upon. proliferation of government. At the same
Most would have it remain in obscurity, time, the private sector is downsizing
blowing in Bob Dillon's wind. its workforce in order to increase its
Nevertheless, the free market remains a profits. This doesn't make sense if the
strange rapacious beast that continually cost of the increased government
seeks its own existence, according to its infrastructure is the same or more than
widely varying appetite, without regard the cost of increased corporate
to who and what it consumes along the production. What I'm saying is that the
way. You might wonder if I copied the private sector, the corporate
foregoing description of free market capitalists, can successfully manipulate
capitalism from some old book of the level of unemployment in the country
socialist aphorisms. No, it's an the same way it can arbitrarily increase
original that I thoroughly contemplated the price of a popular product 1500
before enlisting it in this essay. It's percent. They do this knowing that the
predicated upon an essential principle of American public will still buy the
human nature, greed. For instance, a product at the exorbitant price, and will
grizzly bear will, by instinct, kill and look forward to doing so. And when they
eat lesser creatures only to survive and announce that 36,000 or more employees
feed its young. A human being, on the have to be laid-off to sustain a
other hand, will prey on its own kind by particular level of production, the
premeditation and design in order to have unemployed worker will docilely accept
more than it needs to adequately exist. his fate and the state of affairs as
In fact, the human being is the only inevitable. This amounts to the
specie that will kill its own kind, as unfortunate conditioning of the American
well as other species, in order to live public through the media.Is democratic
more comfortably. The desperate burglar socialism a better way to secure a
who ends up killing in order to steal quality of life for the average American
money or valuables is a street variety of worker? I look at Canada, Britain,
this creature. The corporate Wall Street Australia, and New Zealand and wonder
type of this animal is an elusive sort whether vast corporate profits are more
that will prey on its victims from high important than the government providing
in the suites, always pretending that health care and the basics of life to a
what it is doing is best for them and the deserving population. These nations may
economy. All the while, the intended not have the GNP of the United States or
victims of this corporate predator scurry the vast military-industrial complex that
about in their middle-class and spends the highest percentage of the
lower-middle-class existences doing federal budget to sustain a war machine,
exactly what they have been conditioned but they provide a quality of life for
to do. their citizens. In the long run, the
After I had feverishly downed the preeminence of a nation-state is not
purchased Hershey bar, savoring its 79 determined by its international status,
cents of delight, I sat at my desk but, rather, by its ability to provide
holding a Number 2 Dixon Ticonderoga for its own. Perhaps it's time to place
Pencil. I had sharpened it in order to as much a public value on healthcare and
do some math calculations. All at once I employment as on the almighty Hershey
thought of something rather profound. bar. Perhaps if we raised the value of
Though I had paid 3 cents in 1960 for a an end to costly healthcare 1500 percent,
pencil of that quality, the same type of the mandate of our Constitution to
pencil, just a week before, had cost me promote the general welfare would be
only 4 cents. There was something very quickly realized. At the same time,
revealing in that comparison that seemed maybe the price of the Hershey bar would
to jump out at me. Why had the candy bar come down. I would hope so.Norton R.
increased 1500 percent in 49 years while Nowlin holds M.A. and B.A. degrees from
the pencil had increased only 1.3 the University of Texas at Tyler in
percent? The pervasive principle of free addition to one year of law school at
market economics that is at work here is Thomas Jefferson School of Law, in San
the essence of public demand and how much Diego, California, and 70 semester hours
the capitalist can greedily derive from of inter-disciplinary post-graduate
the popularity of the product. Though it credit in history, sociology, ecnomics,
presently takes the same amount of and law. Mr.




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