Bailouts and Buyouts and the Cost of Bologna
Posted: Monday, December 29, 2008
by Gerry Charbonneau
http://nibblednews.typepad.com
"Economics is extremely useful as a form of employment for economists."
-- John Kenneth Galbraith, economist (1908 - 2006)
Sam Beckman ( Sammy to his friends and faithful customers ) was the sole owner and proprietor of Beckman's Supermarket for over 30 years. His was a family run business not associated with any major national food chain or supplier.
He was an honest and trusting small business owner. His prices were always as competitive as possible. His customers usually lived in the immediate surrounding area. The floor in the store was wooden and spotless. The meats were always fresh and cut to his customers often exacting specifications.
The aroma of freshly baked breads and cinnamon buns and sugar cookies greeted his customers. The only things the store lacked to make it even homier was a pot bellied stove, a comfortable wicker chair or two and a checker board. It had over time become an unofficial community meeting place.
Sammy had apprenticed himself to be a butcher when he was a young man and had learned the trade well enough to go into business for himself. But, truth be told, he was more than a mere butcher. He had also developed over the years the uncanny ability of understanding people and the larger world around him. He realized the importance of treating his customers fairly and honestly.
He was at all times a philosopher, economist , political pundit and generous human being. He had a special rapport with his customers and his customers appreciated the special treatment they received from him and his wife. Everyone was welcomed warmly to his place of business. From time to time he could predict with some certainty the direction the economy was headed by simply gauging its success by the cost of a pound of bologna.
Just about everyone in this town was employed by one of the auto manufacturers. People planned their lives and their financial future, success and security on the health of the Big Three. If a person was not employed in the auto industry then he/she was considered by many folks to be a failure. End of story
There were of course the less glamorous jobs offered by the food service industry. These jobs were somewhat reserved for summer students and possibly itinerants passing through town who might need a few bucks to tie them over. The pay wasn't glamorous and the work taxing and physically demanding.
Sammy noticed that when the demand for bologna by his customers increased the auto giants would be experiencing economic problems. The plant layoffs might have increased proportionately and his best customers would ask him for extended credit until their unemployment checks arrived. He gladly extended credit to his faithful customers. After all, he reasoned, without his customers he would have to close up shop and sell his business.
When the demand for bologna dropped the auto companies were making money and people in the area gainfully employed. The economic good times had returned. For years he watched his own financial indicators and gauged his prices accordingly. Then progress eventually stepped in to change the playing field. Sam himself now faced competition in the grocery business.
The larger food chains eventually took up their position in the area. They offered much lower prices than Sam could provide to his customers. While they offered customers Air Miles rewards and case lot pricing he could only entice them with extended credit terms and a convenient location close to their homes. After a while even his best customers abandoned him for the Wal Mart and Food Super Stores. His faithful following eventually abandoned him for the convenience of greater variety and extended store hours.
Sam accepted his fate rather philosophically and finally closed his business and retired. He and his wife relocated to Florida. The land his store had occupied for over 30 years was purchased by a syndicated Drug Store chain. The day of the small and competitive business owner has long since become extinct. Customer closeness gave way to the customer computerized data base.
He passed away long before the Big Three auto producers faced their own financial difficulty. It would have surprised him that these financial giants and players on the global economic scene could have miscalculated their own customers' needs and desires. He would have imagined that their analysts and financial gurus would have taken the time to at least analyze the price of a pound of bologna to realize that they were heading into troubled times. Their corporate baloney placed them and their shareholders and employees on the chopping block.
One can only imagine what the demand for bologna is these days in those cities totally dependent on the health and success of the giant auto manufacturers. The trust that Sam's customers had developed over many years has been replaced these days by a cynicism of big business in particular and fear for personal security in particular.
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Top-level comments on this article: (1 total)Great story, Gerry. Common sense- just a dab will do ya.Happy New Year Ken!
I'm glad you enjoyed the article. Thanks for your comments.
Sometimes in life those important dabs of common sense are sorely overlooked as most folks are overwhelmed by the BIG picture.
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