The Loaf of bread rule

When I was a lad --back in the 40's -- my dad was a factory worker.  He worked for a regular hourly wage -- probably less than a dollar an hour.  He was occasionally given a small raise -- usually five or ten cents an hour. But when he came home and announced that he had been given a raise, he followed up this good news with "Now the price of a loaf of bread will go up, you just watch."  And sure enough, that is exactly what happened.  

I have been watching the Democratic presidential debates with some interest, some entertainment and some trepidation.  They all have offered lots of free stuff -- lots and lots of free stuff -- with no apparent way to pay for it.  When pinned down, they all agree that the way to foot the bill for all this good stuff is to tax the "big corporations and the wealthy folks."  They assure us that middle class and poor people will not be affected with this cost of these freebies.  "Taxes will pay for it," they say.

Since I am retired and on social security (which, by the way I paid for over my lifetime of working), I am very much aware of the cost of things like groceries and gas and things I need to exist and stay alive.  Living in Florida, I shop for food mostly at Publix Supermarkets.  From my observation, which is not at all scientific, but fairly reliable, my grocery bill has gone from around $50 per shopping day , to around $70  for the same amount of food and stuff one buys at a grocery store.  A box of Publix  brand cereal was $1.64 a few weeks ago, is now $1.94.  So what is my point?  When faced with an additional expense -- whether it is a tax or an increase in wholesale cost -- Publix will add it to their price of cereal and everything else they sell.  And so will General Motors or Toyota or a big Pharma or -- you name it.  And so did the little grocery story where my dad bought his loaf of bread way back in the 40's.  Take a look at your cell phone bill.  Why do we  have all those extra little  charges added on each month?  Verizon is certainly not paying for taxes or fees or anything else they are charged -- you are!  The consumer always eventually pays. That is just the way the economic and business world works and always has. 

I am reminded of the story of how economics works in the mind of a five-year-old.  When told she could not have a certain item she wanted, the little girl was admonished by her father that he just could not afford that little trinket because he did not have enough money.  Whereupon the little girl told him to go to that machine at the bank and get some money.  She told him that machine had plenty of money.  All he needed to do was get some of it. And so I ask you.  Do these Socialistic  Democrats think there is such a machine?   I think they do. 

 From the heart of Olaf Hart