How Abraham Lincoln Explained Tariffs With a Grocery Store Joke

 

New York City docks (1860s)

Tariffs have always made even sharp minds scratch their heads. Abraham Lincoln knew this well. Instead of dry economics, he reached for a joke. In one of his trademark stories, he compared tariffs to a grocery store mix‑up involving crackers and cider. The punchline? “Somebody gets the money, but I don’t understand exactly how.”

More than 150 years later, Lincoln’s wit still captures the head-scratching confusion we feel about tariffs today.

🥖 Lincoln’s Grocery Store Joke

Lincoln was talking with his advisors about the cost of the war and the government's dwindling money supply. One of his advisors suggested increasing the tariffs.

Lincoln pondered the comment for a few minutes and then said, "There is something obscure about [tariffs]." Then he launched into a story:

It reminds me of the fellow that came into a grocery down in Menard County at [New] Salem where I once lived, and called for a picayune's [*] worth of crackers; so the clerk laid them on the counter. After sitting for awhile, he said to the clerk, "I don't want these crackers. Take them and give me a glass of cider." So the clerk put them back in the box and handed the fellow the cider. After drinking it, he headed for the door.

"Hey Bill," called the clerk, "pay me for your cider."

"Why?" said Bill, "I gave you crackers for it."

"Well then, pay me for the crackers."

"But I didn't have any," responded Bill.

"That's so," said the clerk. "Well, get out! It seems to me that I've lost money somehow, but I can't make out exactly how it happened."

Lincoln looked at his advisor. "So it is with the tariff," he said. "Somebody gets the money, but I don't understand exactly how." [1]

💰 What His Story Meant and Why It Matters

Tariffs are technical and rarely explained in everyday terms, yet they hit consumers directly. Shoppers don’t see a line item on their receipt saying “tariff surcharge.” Instead, like the clerk in Lincoln’s story who couldn’t figure out how he lost money on a simple trade, today’s families just know their grocery bills keep climbing.

Lincoln’s tale captures that sense of frustration perfectly: the loss is real, but the cause is confusing. His point still resonates — economic measures that look neat on paper often leave ordinary people paying the bill for reasons they don’t fully understand. And surveys today confirm it: Consumers report frustration with high prices that make their incomes buy less, saying they feel squeezed at the checkout line without knowing exactly why.

When leaders push tariffs or trade barriers without Congressional oversight or regard for the people they serve, the proof of their indifference is at the cash register, and families pay the price.

 😉 History With a Wink

Abraham Lincoln’s cracker‑and‑cider anecdote shows how humor can illuminate complex issues. It’s also a reminder that history isn’t just dusty speeches — it’s full of wit, wisdom, and lessons that still resonate.

By reflecting on his words in this instance, we can better appreciate the need for coordinated economic strategies that protect the daily lives of the American people and their families. History holds the answers to many of today’s struggles — if we’re willing to listen.

Food for thought from the archives of Abraham Lincoln, Storyteller.

Mac

[*]👉 picayune was originally a small coin—specifically a Spanish coin of very little value, used in parts of the southern United States in the 19th century. So when Lincoln joked about a “picayune’s worth of crackers,” he meant a tiny, almost negligible amount — which made the story funnier, since the whole confusion was over something so small. Over time, the word has come to mean something trivial, petty, or insignificant.

📚 Works Cited

[1] McClure, A. K. (1901). Lincoln’s yarns and stories: A complete collection of the funny and witty anecdotes that made Lincoln famous as America’s greatest story teller. Chicago: Belford, Clarke & Co.