10. Tariff increases the cost of living.
Exercise 152—Outline for a Debate
Choose two or four members of the class to develop each side of the following debate. Wherever possible, definite figures should be used.
Resolved, That Advertising has Increased the Cost of Living.
Affirmative
I. Modern advertising is world-wide in extent.
(a) Practically all classes of articles are now extensively advertised.
(1) Food stuffs; e.g., breakfast foods.
(2) Clothing; e.g., men's suits.
(3) Luxuries; e.g., automobiles.
(4) Investments; e.g., real estate.
(b) Every possible medium is used.
(1) Newspapers.
(2) Magazines.
(3) Billboards and street cars.
(4) Circulars and booklets.
II. An enormous amount of money is spent in advertising.
(a) The use of advertising agencies is growing more widespread.
(1) One agency has made the statement that it has nine men whose salaries amount to $227,000 annually.
(b) More and more companies are engaging advertising managers.
(1) They draw large salaries.
(x) In many cases, $10,000 annually.
(c) Advertising rates are very high; for example,
(1) The rate for a certain magazine is $1000 a page per issue.
(2) Metropolitan newspapers charge as high a rate as $500 a page per issue.
(d) Many advertisers use each issue of a number of mediums, making the cost run to an enormous total; for example,
(1) Cream of Wheat is advertised in every issue of almost every magazine.
III. The consumer pays for the advertising.
(a) The price that the consumer pays for an article must cover the cost of production and the expense of distribution, leaving
fair margins of profit, since
(1) The manufacturer will no longer produce if his profit ceases.
(2) He is not willing to take the cost of advertising from his profit in manufacturing.
(3) The dealer will not take the advertising cost from his own profit.
IV. Advertising increases prices.
(a) The cost of manufacture and the expense of distribution have been steadily lowered, and yet prices of articles have steadily
advanced; therefore
(1) The rise is not due to the cost of manufacture.
(2) Nor to the expense of distribution.
(b) Competition necessitates an increased amount of advertising.
(1) If one firm begins to advertise, its competitors, for self-protection, must follow suit.
(c) Competitive advertising raises expenses above the point where there is a fair profit at the old price.
(1) For a given kind of goods there is usually a certain volume of business, which grows with population.
(2) If all the firms competing in those goods increase their expenses by advertising, they must raise prices to make the same
profit as previously.
(d) Advertised articles cost more than the unadvertised.
(1) Bulk rolled oats vs. package rolled oats.
(2) Bulk pickles and relishes vs. advertised brands.
(3) Bulk macaroni vs. package goods.
Negative
I. The present increased advertising is the result of normal growth.
(a) Multiplied manufactures necessarily multiply advertisements.
(1) Every day new products are being put on the market.
(2) No product has the chance of a sale until it is known.
(3) In the present scope of community life the advertisement is the most convenient means of acquainting consumers with
new products.
(b) Any unusual increase in advertising has a reasonable explanation.
(1) Automobile advertising has increased as the automobile has replaced the wagon and carriage, because of
(x) Greater convenience.
(y) Lower operating cost.
(2) Prepared breakfast food advertising has increased as these foods have replaced cooked foods, because of
(x) Greater convenience.
II. Increased advertising is done on the scale of old prices.
(a) Merchants dare not raise prices to make the consumer pay for the advertising, since
(1) They must compete with manufacturers who do not advertise and who have no overhead advertising expense.
(b) The most widely advertised articles are the inexpensive necessary accessories.
(1) Food products.
(2) Soaps and soap powders.
(3) Toilet articles.
(c) They have not advanced in price.
(1) Quaker Oats.
(2) Ivory Soap; Sapolio.
(3) Mennen's Talcum Powder.
III. Widespread advertising works to the advantage, not the disadvantage, of the consumer.
(a) It gives new opportunities
(1) To compare values.
(2) To buy to the best advantage; for example,
(x) In advertised bargain sales.
(b) It reduces the cost of production and the selling expense, thu tending to lower the price.
(1) By increasing sales, it reduces the cost per article.
(x) Maximum purchasing power means minimum cost to the manufacturer.
(2) In taking the place of salesmen, it reduces expenses, thus lowering the price; for example,
(x) In mail order firms.
(3) Therefore the advertising expense is unimportant in influencing a higher price.
IV. The most marked price advances have been in the unadvertised necessaries of life.
(a) In breadstuffs.
(1) Less in quantity for higher prices than formerly.
(b) In meats and poultry.
(1) An advance of from 25 per cent to 100 per cent and more.
(c) In butter and eggs.
(1) An advance similar to that shown in meats and poultry.
Exercise 153—Additional Subjects for Debates
1. The wages of women should be the same as those of men in the same occupation.