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The Marketing Problem Is a Depression Phenomenon 



Over a period of many years the middleman takes a bigger 

 share of the consumer's dollar, but within shorter periods 

 of time the middleman's portion rises and falls. The costs 

 of distribution tend to be stable, and with a given change 

 in the price level do not change as much as retail prices. Con- 

 sequently, when prices fall, the costs of distribution remain 

 approximately at previous levels and the middleman takes 

 a larger share of the consumer's dollar. The middleman there- 

 fore is extremely unpopular with the farmers in hard times. 

 The problems of marketing seem most acute in time of de- 

 pression. 



When prices rise, the costs of distribution rise less than 

 retail prices, and the middleman takes a smaller share of the 

 consumer's dollar. In 1942 the costs of distributing food took 

 about half of the consumer's dollar compared with two thirds 

 in 1932. In time of rising prices the middleman is also un- 

 popular, but at such times it is the consumer's ire that is 

 aroused. 



Little Is Known about the Middleman and Much Is 

 Suspected 



The farmer and the consumer know little about the mid- 

 dleman, and, knowing little, they suspect much. The farm- 

 er's interest in his product ceases when he takes it to market. 

 He has used all his energy and ingenuity in production, and 

 he is glad to turn his product over to the manufacturers, 

 processors, and distributors. The consumer gets his food from 

 the last link of a long distributive chain. He usually doesn't 

 know where his potatoes came from or whose hands they 

 have gone through. 



Nor do the farmer and the consumer know much about 

 each other. The farmer cannot see why the consumer in- 



