Nickel and Dimed

Grandma's Lye Soap labels,
March 2011 & Jan. 2011
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There's an old joke about a whorehouse called "Granny's Place" made of the usual dirty stuff with the punchline, "You just got screwed by granny!" That was then, this is now.

It is a small point to make but illustrative of the larger realities in the U.S. (Higher Food Prices are Here to Stay). A Cracker Barrel product will be our example, as that establishment portrays itself as the purveyor of all things down home (ignoring for the moment the fact that most of the tchotchkes they sell, like quilts and harmonicas, are actually Made in China.) But witness, Grandma's Pure Lye Soap, which is usually in Ranger's soap dish (not the SF variety).

The soap appeared more petite in size this month, and the label told the story: Within three months, Granny's soap has downsized 9%, from 6.6 oz. (185 grams) to 6 ozs. (170 grams) -- but with no concomitant decrease in price. This is a surreptitious example of 9% inflation, and this is not an isolated event.

Examples abound everyday of getting less but paying more (or the same), therefore we are suffering devaluation of the dollar on a micro level with every reduced-size purchase. This is such a clear example of hidden daily inflation, yet we are told there is no inflation and therefore, no forthcoming Cost of Living Adjustment (COLA).

We are being treated to the Chinese death of a thousand cuts through this nickle and dime-ing. We are all getting screwed by Granny. and there is no indication we will pull out of this nosedive anytime soon.