I'm not buying it.

I'm not posting very much lately because I'm in the middle of rewriting a novel. And posts may be less frequent over the indefinite future because I've canceled my at-home Internet access and landline phone. The phone and the Internet were very nice luxuries, but Cox Communications seemed to keeping finding inventive new ways to raise their prices. I did the arithmetic and figured out that they are getting about $700/year of my hard-earned money.

Cox would give me better rates on phone and Internet if I would get cable t.v. from them. But I don't want or need television, and my total cost would go up substantially. Other utilities -- the ones that are real necessities in an urban environment, like gas and electricity -- have also been going up. So I decided that I could get by with my little by-the-minute cell phone and the free Internet that is available at the public library and local coffeehouses. A side benefit of this is that I will be able to use the Internet more mindfully for the things that are really important to me, and not as a mindless time-waster when I am tired or bored.

My own situation reminded me of a story I heard on The Takeaway a few weeks ago. According to this public radio newscast, "The Obama administration has made universal access to broadband Internet a top priority, but a new FCC study says that access or no access, 31 percent of Americans can't afford the cost." As difficult economic times continue, with many people continuing to lose their jobs and fall behind on their mortgage payments, I would think that the percentage of people unable to afford home Internet service will only increase.

Given that times are difficult and most people would have less money to spend, it would seem odd that Cox would keep raising its prices. The laws of supply and demand would seem to work against this. If people have less money to spend, demand for things like high-speed Internet access ought to fall, and if demand falls, prices ought to fall as well. Maybe the marketing geniuses at Cox have decided that people are looking for ways to spend less money on entertainment outside the home, and will pay more money for Internet and cable t.v.

Free-market fundamentalists would say that capitalists make profits by offering customers superior goods and services, and that prices go up when demand for these services increases.But it is my observation and experience is that real world corporations do their very best to ignore the supposed laws of supply and demand. When demand is stagnant or falling, they try to make up for loss of revenue by raising prices. Whether this works well for the corporations, whether they increase their revenue more than enough to make up for a resulting loss of business, is something that I don't know. But it's pretty clear to me that it doesn't work well for the rest of us.