Economics and the Hershey Bar

Yesterday began as a cold rainy Friday for mesame amount of ingredients, as it did 49 years
when I got out of bed hungering for, of all things,ago, to make the same Hershey bar, the candy is
a Hershey bar. It must have been the suddenconsidered to be worth 1500 percent more now
intense craving for that yummy chocolate tastethan then. Is this because the price of sugar,
that caused me to get quickly dressed, grab mychocolate, and the other ingredients in the bar
wallet, and, with an umbrella, walk the oft-beatenhave substantially increased? No. The price of the
one block route to the neighborhood convenienceingredients haven't gone up that much, not 1500
store. There I found the traditional black andpercent. Candy makers can currently buy their
white packaged candy displayed prominentlyingredients wholesale and not pay but 10 percent
among its many rivals crying out, "buy me, buymore than they paid in 1960. The overall cost of
me." So I grabbed one and rushed hungrily to theproducing the candy hasn't gone up more than 25
checkout counter to discover that the small bit ofpercent.In relation to the pencil, you can clearly
chocolate for which I, as a child, paid 5 cents wassee that the content and basic quality of the
now 79 cents. But as I was suddenly exasperatedTiconderoga Number 2 is the same as it was in
by the retail price of the item, I found myself1960. The cost of producing it might have possibly
pulling out a dollar bill, handing it to the cashier, andincreased 5 percent or less. But the popularity of
getting back my 21 cents in change. As I walkedthe pencil has not increased as much in 49 years
out of the store tearing the paper off theas has the Hershey bar. The candy maker knows
chocolate bar, it dawned on me that even if thethat people enjoy eating candy more than using a
candy had been a dollar, I probably would have stillpencil. That is why countless millions of dollars are
bought it.But isn't that the way the free marketspent by candy companies each year to
works to regulate our lives according to theadvertise their quickly consumable products. They
arbitrary values set by private industry? Perhapsknow that the American public will pay 79 cents
the current 4.9 percent unemployment rate infor a Hershey bar even if it is really only worth
America may be defined and understood betterperhaps less than 20 cents. Yet, while everyone
by taking a snapshot of the rise and fall ofcan't eat candy because of health concerns, the
arbitrary values, or the prices set on the thingswhole American population uses pencils. However,
the American people hold dear. As far as theI can't remember the last billboard I saw
Hershey bar is concerned, approximately 6,000advertising pencils, though you can probably find
employees currently labor year-round in Hershey,at least one in every American home, school, and
Pennsylvania to produce the same type of candyoffice.
that was made nearly 80 years ago by Milton S.What does this have to do with the current
Hershey. Supposedly, the quality and quantity ofunemployment crisis? Well, American capitalists
the original Hershey chocolate bar has notare driven by the profit motive to produce and
changed over the years, but the price suredeliver their products. This is the amount of
has.When I was a young boy, I regularly collectedmoney they get for a product after the cost of
soda-pop bottles from alongside the county roadsproducing it is subtracted. The high point of
in East Texas. People then would ordinarily buy Dr.American capitalism is finding the maximum cost
Peppers and Cokes in the ten ounce glass bottles,for which a product can be offered which will be
drink them while driving, and throw them fromaccepted readily by the consumer. In the same
their cars into the high uncut grass. This was toway the cost of something can be artificially
my benefit, because in an hour's time I could findraised in order to increase profits, the number of
ten or more of those bottles and sell them backemployees it takes to produce the product can
to grocery stores for their deposits, then 10be arbitrarily decreased for the same reason. For
cents per bottle. With my pockets bulging withinstance, the high rate of unemployment during
dimes and quarters at the end of a summer day,the Great Depression occurred even though the
I would pay a visit to the candy case of my localproduction of essential products throughout the
store. With the dollar or more I had made fromnation continued. The stores continued to sell
the bottles, I would go away from the store withthese products even though there wasn't as
ten or more Hershey, Butterfinger, or Mars barsmuch international trade. The wealthy people in
in a paper bag. That's when candy bars were 5-10the country, the ones with money to spend,
cents each during the 1950s and 60s. At thecontinued to live their lavish lifestyles. A certain
current selling price of 79 cents, a Hershey bar,percentage of the workforce was retained in
with the same size and content of the barorder to secure this level of production. Had the
produced in 1955, has increased 1500 percent inproduction levels been arbitrarily increased by the
value. Does this surprise you, or are you willing tocorporate CEOs at that time, unemployment
casually say, "what's the difference? Everythingwould have been substantially reduced.Presently,
goes up in price and I'd buy it if it were agovernment employment is increasing way above
dollar."The poignant question festering in the backthe private sector. What this means is that the
of everyone's mind, whether they want to admitexecutive branches of the federal, state, and local
it or not, is, "did the price really have to go up ifgovernments are using tax money to pay an
the quantity and quality of the product are theexpanding number of salaries. While tax revenues
same as they were in 1955?" The answer is oneare not earned, but collected from taxpayers, the
that almost all hard-nosed capitalists would ratherprivate sector is essentially paying for the
not care to expound upon. Most would have itcontinued proliferation of government. At the
remain in obscurity, blowing in Bob Dillon's wind.same time, the private sector is downsizing its
Nevertheless, the free market remains a strangeworkforce in order to increase its profits. This
rapacious beast that continually seeks its owndoesn't make sense if the cost of the increased
existence, according to its widely varying appetite,government infrastructure is the same or more
without regard to who and what it consumesthan the cost of increased corporate production.
along the way. You might wonder if I copied theWhat I'm saying is that the private sector, the
foregoing description of free market capitalismcorporate capitalists, can successfully manipulate
from some old book of socialist aphorisms. No, it'sthe level of unemployment in the country the
an original that I thoroughly contemplated beforesame way it can arbitrarily increase the price of a
enlisting it in this essay. It's predicated upon anpopular product 1500 percent. They do this
essential principle of human nature, greed. Forknowing that the American public will still buy the
instance, a grizzly bear will, by instinct, kill and eatproduct at the exorbitant price, and will look
lesser creatures only to survive and feed itsforward to doing so. And when they announce
young. A human being, on the other hand, willthat 36,000 or more employees have to be
prey on its own kind by premeditation and designlaid-off to sustain a particular level of production,
in order to have more than it needs tothe unemployed worker will docilely accept his
adequately exist. In fact, the human being is thefate and the state of affairs as inevitable. This
only specie that will kill its own kind, as well asamounts to the unfortunate conditioning of the
other species, in order to live more comfortably.American public through the media.Is democratic
The desperate burglar who ends up killing in ordersocialism a better way to secure a quality of life
to steal money or valuables is a street variety offor the average American worker? I look at
this creature. The corporate Wall Street type ofCanada, Britain, Australia, and New Zealand and
this animal is an elusive sort that will prey on itswonder whether vast corporate profits are more
victims from high in the suites, always pretendingimportant than the government providing health
that what it is doing is best for them and thecare and the basics of life to a deserving
economy. All the while, the intended victims ofpopulation. These nations may not have the GNP
this corporate predator scurry about in theirof the United States or the vast military-industrial
middle-class and lower-middle-class existencescomplex that spends the highest percentage of
doing exactly what they have been conditioned tothe federal budget to sustain a war machine, but
do.they provide a quality of life for their citizens. In
After I had feverishly downed the purchasedthe long run, the preeminence of a nation-state is
Hershey bar, savoring its 79 cents of delight, I satnot determined by its international status, but,
at my desk holding a Number 2 Dixonrather, by its ability to provide for its own.
Ticonderoga Pencil. I had sharpened it in order toPerhaps it's time to place as much a public value
do some math calculations. All at once I thoughton healthcare and employment as on the almighty
of something rather profound. Though I had paidHershey bar. Perhaps if we raised the value of an
3 cents in 1960 for a pencil of that quality, theend to costly healthcare 1500 percent, the
same type of pencil, just a week before, hadmandate of our Constitution to promote the
cost me only 4 cents. There was something verygeneral welfare would be quickly realized. At the
revealing in that comparison that seemed to jumpsame time, maybe the price of the Hershey bar
out at me. Why had the candy bar increasedwould come down. I would hope so.Norton R.
1500 percent in 49 years while the pencil hadNowlin holds M.A. and B.A. degrees from the
increased only 1.3 percent? The pervasive principleUniversity of Texas at Tyler in addition to one
of free market economics that is at work here isyear of law school at Thomas Jefferson School
the essence of public demand and how much theof Law, in San Diego, California, and 70 semester
capitalist can greedily derive from the popularityhours of inter-disciplinary post-graduate credit in
of the product. Though it presently takes thehistory, sociology, ecnomics, and law. Mr.