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Show The taper That Dares June 7, 1973 The UTAH Independent Page 7 To Take A Stand Why Food Prices Went Up READERS OUTLOOK Mrs. Ellen R! Sauerbrey, writing in the Baltimore County by Perhaps the most serious implication of the current uproar over food prices is the total public confusion about who is to blame. The housewife pickets the supermarket. Congressmen cast about for unscrupulous "speculators," the businessman blames union wage rates, while the union member looks suspiciously at the farmer or the entrepreneour. The confusion reflects the general lack of understanding of basic economic principles and the total failure of our education system and our communications media to present the facts. This is a very dangerous shortcoming because the true causes will worsen until they are recognized. The three obvious and direct contributors to the cost of food are the farmer, the Jeffersonian The "middlemen" are the eight million workers in processing, warehousing, and marketing agencies. The middleman accoutns for about 76 percent of the increase in food costs today as compared to 20 years ago. The big item which stands out inniddleman costs is labor. Overall labor costs in the food trade have gone up 300 percent in the past 20 years (over twice the national average). The largest single item in pricing food is labor, representing 44 per cent of the total food cost. Does that mean, then, that the middleman is the culprit? That is too superficial a conclusion. The root of the problem lies much deeper. High labor costs in the food industry transporting are just a part wage-pric- e of the overall spiral of inflation. . Continued From Page 5 not win elections. The trick is how to spend more without taxing more. The government, it must be remembered, has nothing to spend that it has not first taken away from the people. The government finances its deficits by "selling" bonds to the banking system. For every $1 worth of government debt financed throught the Federal Reserve System, the system permits over $5 worth of credit expansion, which means over $5 worth of new money has been created out of thin air. The government has increased the paper money supply but has backed it with nothing of value. The result is that there are more paper dollars in circulation competing for the same amount of available goods and services (or beef and potatoes). The effect is the same as if another bidder arrives at an auction sale with an endless supply of dollars and drives up the prices of all that is put up for bids. Whether through taxation or credit expansion (i.e. inflation) the taxpayer has surrendered his purchasing power to the government. As he surrenders more and more of his purchasing power, he is left with less freedom of choice as to how to spend his money. When purchasing power is lost through taxation, the housewife can see why she has less money to buy meat and potates. Inflation, however, is insidious. It also results in the housewife having less money to buy meat and potatoes, but the shopper who is unaware of basic for Instead of picketing the supermarket, the housewife should let her voice be heard by those who spend her money the administration and Congress it. of the USA. Food is still a good buy for most of our citizens. Americans today spend a much smaller percentage of their after-ta- x income for food than they did20 years ago, and because of the productivity of our agricultural system, spend less than any other nation in the world. But as inflation pushes all prices upward, the clamor for controls grows ever louder. Ironically much of the noise comes from Washington from those who create the federal deficits, the resulting inflation, and price increases. Controls have never safety requirements." The lengthy message to Congress of which this is a very small leads portion and methodically inexorably to certain conclusions: (a) "In the foreseeable future we will have to import oil in large quantities," therefore ''must we move forward with an ambitious program to create new ports for receiving (b) all imports deepwater petroleum workers and consumers that's you, sir and me - must help by "turning out lights, tuning up automobiles, using less air conditioning and heating, and purchasing products which use energy efficiently," (c) we must become involved "cooperative, in international efforts," the most conspicuous being of course, "joint projects with the Soviet Union"; (d) we worked anywhere. They must submit to limitless federal discourage productivity, control; destroy incentive, reduce Action Isand (e) "The Need For Urgent." supplies, encourage black You believe itl He said it don't markets and ultimately force did! Just one short prices even higher if goods are all, he really month ago. to remain available. The lack of economictraining Sincerely, in our educational institutions Dorothy Walden and by our news media is Desert Hot Springs, Cal. producing a citizenry that is so unaware of how our system The trouble with real works, that it may in ignorance scriptural Christianity is demand the slaughter of the that weve never come dose that the lays egg. goose golden enough to it in practice to "middleman and the market Inflation has affected the are Because place. readily price of all goods and services. they identifiable they come in for the Food costs, statistics show, lion's share of criticism, yet in have been less affected than each case a study of the facts most other areas of daily life. y demonstrates the fallacy of However, since food is a blame. necessity, not a luxury, Over the past 20 years, the those on a fixed income or price the farmer receives for those whose salaries have not food has climbed a total of six kept pace with the average are percent while prices at the caught in the squeeze. Rising checkout counter have food prices have thus become increased about 50 percent. an emotional target for the During these same 20 years, victims of inflation. average wage rates throughout Although it must be really know what it would Reprinted from Life Lines, Vol. America have increased a total acknowledged that other be like. 15 No 59 of 1 30 percent. Though his costs factors such as weather, have gone up sharply, the exports of feed grain, foreign American farmer has increased demand of U.S. meat, and productivity so greatly that he greatly increased per capita the ultimate m fine... has been able to absorb the consumption of beef and BEAUTIFUL WEDDING CANDIES higher costs and farm prices poultry in this country have an CREATED ESPECIALLY FOR YOU. have shown little increase. For effect, the main culprit in the ' FABULOUS BUTTER ROASTED example, in 1950 the. farmer long term rise in food prices is Ql NUTS. PARTY CANDIES economic principles is unable received about 32 cents a pound inflation. what has robbed her to for prime beef. By 1 971 his price SEND FOR ILLUSTRA TED BROCHURE Although As with the of identify purchasing power. was only a little over 33 cents a symptom,, the rising price of Given the choice, how many Phone food, few people know who to 487-103- 1 pound. By mid March of American housewives would itself for blame the disease this year, the farmer was blames willingly trade their ability to Business inflation. receiving about 48 cents a C: Kay. buy meats, fresh produce and unions blame convenience Cummings pound, an increase that reflects unions, foods regularly consumer the employers, in part the higher feed grain 1959 So. 1100 E. CLOSED SUNDAY blames both, and the culprit and steaks occasionally for the Soviet the caused by prices nebulous promises of a high wheat and corn deals. If the price goes undetected. The true culprit is chronic priced government spending of beef had risen at the same program that benefits some federal rate as wage increases, the deficit spending by the pressure group? Yet this is farmer would today be getting government. Theoretically, the exactly the choice she must its about 74 cents per pound. government finances make. If she opts for a welfare taxation. spending programs by is not the farmer the Clearly But taxes are unpopular and do state, she must be willing to pay culprit. He is due credit for efffWVIVVVVVVWVFNWFMNFNV meeting increased costs with increased efficiency. JOB OPPORTUNITY The supermarkets, which are I: MEN AND WOMEN of may boycotts, today's targets be driven out of business Do you have dreams, aspirations or goals you want to tomorrow if their profits are attain? Do you enjoy helping others better themselves? forced much lower. Chain store We have part time or full time positions now open in profits have declined steadily over the past decade. They now your locality. a cent profit on average one-haComplete Training Program evey dollar sold. Five of the ten 1 For Interview Appointment large chains lost money in 972. of The average person does not care about the declining The housewife expects plenty items Mr. Arnold Petersen 4 Phone (801) value of paper dollars when he can still purchase free parking, air conditioned with that paper, but modern stores, shopping at all Learn what the professionals and international bankers hours of the day and night, no are doing to protect their assets. line at the check out counter and an inventory of all her favorite brands. The chains must buy the See Greg Gregson for a private and confidential food, warehouse it, distribute it discussion of your dollar transfer into silver or gold. to the local stores, price it, put it on the shelves and check it out at the cash register. And for all of its investment in modern stores and equipment, the chain store & day-to-da- CHOCOLATES' . fine candies ! Offer 1. Protection of Savings 2. Potential in Changing Market I I lf 298-566- 'Wmrrffrrrrru NIEDERHAUSER MECHANICAL CONTRACTORS settles for less than a one cent profit. What housewife is willing to accept a one per cent profit on the money she puts in the bank? The best ten years of a womans life are between and thirty. twenty-nin- e A. Anonymous Cynic Commercial Industrial Heating & Plumbing Air Conditioning 16 Kensington Ave. Salt Lake City 484-525- 5 . AMEROCAN SOLVER MINT 235 South 500 East, Suite 6 Salt Lake City, Utah 84102 PH: , 328-050- 1 Gold Dust and Nuggets, Silver Coins, Bullion and Medallions Any Amount I |