100 Years of U.S. Consumer Spending

Data for the Nation, New York City, and Boston

U.S. Department of Labor

Elaine L. Chao, Secretary

U.S. Bureau of Labor Statistics

Kathleen P. Utgoff, Commissioner

May 2006 (minor revisions were made to the online version of this report on June 2 and August 3, 2006)

Report 991
i

1901

Preface

The Consumer Expenditure Survey is among the oldest publications of the Bureau of Labor

Statistics. With information on the

expenditures, incomes, and demographic characteristics of households,

the survey documents the spending

patterns and economic status of American families.

This report offers a new approach

to the use of Consumer Expenditure

Survey data. Normally, the survey presents an indepth look at American

households at a specific point in time,

the reference period being a calendar

year. Here, the authors use consumer

expenditure data longitudinally and

draw on information from decennial

census reports to present a 100-year

history of significant changes in consumer spending, economic status, and

family demographics in the country as

a whole, as well as in New York City

and Boston.

By reading about changes in spending patterns, incomes, workforce characteristics, and family demographics,

readers can gain insights into how the

significant events of the 20th century—

World War I, the Depression, the postWorld War II expansion, and other economic expansions and downturns—

influenced the spending patterns of

American households. (The survey

was not conducted during or immediately after World War II.)

Nine timeframes are presented independently, with a section titled “Perspective” providing an analytic framework for each period to aid in interpretation. Tables and charts tracing common elements over the 100-year period also should aid the reader in the

interpretation of trends. However, as

would be expected given changes in

technology and improved survey methods, questions asked in the Consumer

Expenditure Survey have changed

over time. Thus, certain items could

not be analyzed throughout the 100-

year period.

New York City and Boston, two of

the Nation’s oldest urban areas, have

been chosen for analysis based on the

affiliations of the authors. Michael L.

Dolfman is the BLS regional commissioner in New York; Denis M.

McSweeney is the regional commissioner in Boston. To aid in interpretation and understanding, the findings

for both New York City and Boston are

benchmarked throughout the report to

those of the Nation as a whole.
iii

1901 Contents

INTRODUCTION ............................................................................................................................................................ 1

1901

United States .............................................................................................................................................................. 3

New York City ............................................................................................................................................................. 4

Boston......................................................................................................................................................................... 5

Perspective ................................................................................................................................................................. 6

1918–19

United States .............................................................................................................................................................. 9

New York City ............................................................................................................................................................. 10

Boston......................................................................................................................................................................... 11

Perspective ................................................................................................................................................................. 12

1934–36

United States .............................................................................................................................................................. 15

New York City ............................................................................................................................................................. 16

Boston......................................................................................................................................................................... 18

Perspective ................................................................................................................................................................. 19

1950

United States .............................................................................................................................................................. 21

New York City ............................................................................................................................................................. 22

Boston......................................................................................................................................................................... 24

Perspective ................................................................................................................................................................. 25

1960

United States .............................................................................................................................................................. 27

New York City ............................................................................................................................................................. 28

Boston......................................................................................................................................................................... 30

Perspective ................................................................................................................................................................. 31

1972–73

United States .............................................................................................................................................................. 33

New York City ............................................................................................................................................................. 35

Boston......................................................................................................................................................................... 36

Perspective ................................................................................................................................................................. 38

1984–85

United States .............................................................................................................................................................. 41

New York City ............................................................................................................................................................. 43

Boston......................................................................................................................................................................... 45

Perspective ................................................................................................................................................................. 46

1996–97

United States .............................................................................................................................................................. 49

New York City ............................................................................................................................................................. 51

Boston......................................................................................................................................................................... 52

Perspective ................................................................................................................................................................. 54
iv

100 Years of U.S. Consumer Spending

2002–03

United States .............................................................................................................................................................. 57

New York City ............................................................................................................................................................. 59

Boston......................................................................................................................................................................... 61

Perspective ................................................................................................................................................................. 62

REFLECTIONS ............................................................................................................................................................... 65

REFERENCES ................................................................................................................................................................. 71

Contents—Continued
1

1901

Introduction

The economic and demographic

profile of today’s households is

quite different from that of

households a century earlier. Sweeping changes brought about by technological, educational, and institutional

developments have heightened and

brightened material lives. Changes in

consumer spending, in turn, have altered the U.S. economy.

The clearest indicators of an improved standard of living are income

levels and household expenditures.

Between 1901 and 2003, the average

U.S. household’s income increased 67-

fold, from $750 to $50,302. During the

same period, household expenditures

increased 53-fold, from $769 to $40,748.

Equally dramatic is that the $40,748

would have bought more than $2,000

worth of goods in 1901 prices, indicating a tripling of purchasing power.

One significant effect of this upsurge was the change to a consumer

goods-oriented U.S. economy. Mass

consumption, spurred by advertising

and consumer credit, has become a distinguishing characteristic of modern

society. Today, consumer spending has

become the largest component of U.S.

gross domestic product.1

As a result, household expenditure

and income data constitute a valuable

resource in assessing the health and

vitality of the U.S. economy, as well as

those of individual households or families.2

 While no two families spend

money in exactly the same manner, indicators suggest that families allocate

their expenditures with some regularity and predictability. Consumption

patterns indicate the priorities that families place on the satisfaction of the following needs: Food, clothing, housing,

heating and energy, health, transportation, furniture and appliances, communication, culture and education, and

entertainment.3

Consumer spending habits are not

rigid, shifting sharply from time to time

as incomes rise or fall. High-income

families spend more for each of the

above-referenced items in absolute

terms than do low-income families, but

they also spend a lower share of their

income for food and other necessities.4

By assessing the proportion of spending that households allocate for specific items, it is possible to judge both

national and regional income distributions, as well as a society’s overall development level.

In this report, economic and demographic profiles of U.S. households in

the aggregate, as well as profiles of

households in New York City and Boston, are presented. New York City and

Boston are included because they are

two of the country’s oldest urban areas. The report examines how, over a

100-year period, standards of living

have changed as the U.S. economy has

progressed from one based on domestic agriculture to one geared toward

providing global services.

The report provides an indepth assessment of U.S. households at nine

points in time, beginning with 1901 and

ending with 2002–03. The text highlights changes in family structure and

economic conditions and examines factors that have altered and influenced

both society and households.

Tracing the spending patterns of

households nationwide and particularly

in New York City and Boston yields

insights into how the social and economic fabric of the country evolved

during the 20th century.

Making comparisons like these over

long periods of time is difficult. Not

only has the geographic coverage

changed—the New York and Boston

metropolitan areas today are quite different than they were in1901—but survey methodology has also improved,

items have changed (fuel oil versus

kerosene and autos versus public

transportation), and coverage (including single-person households versus

family) will not allow it.

We treat the 1901 Consumer Expenditure Survey numbers as reflective of

both cities. Although the region at the

time of the survey was the State, most

of the surveying was done in New York

City and Boston. Moreover, we avoid

distortion by comparing gross trends.

For these reasons, we do not believe

that the overall analysis of expenditure

shares is meaningfully affected, but it

should be interpreted with caution.

2

 The terms “households” and “families”

are used interchangeably in this report. 3

 Valentino Piana, “Consumption.”

4

 Throughout the report, spending on

necessities is defined as spending for food,

clothing, and housing.

1

 See Valentino Piana, “Consumption,”

at www.economics webinstitute.org/glossary/

cons.htm (visited February 14, 2005).
3

1901

1901

United States

As the 20th century began, the U.S.

population was 76 million. Americans

were young, white, and more male than

female. Relatively few women were in the

workforce, and unemployment was low.

The median age in the country was

22.9 years, 23.3 for men and 22.4 for

women. The percentage of Americans

who were white was 87.9, and the ratio

of men to women was 104.4 men for

every 100 women. The average size of

U.S. families was 4.9 people. (See chart 1.)

Labor force participation was 80.0

percent for men and 20.6 percent for

women, while the workforce consisted

of 82.0 percent men and 18.0 women.

The country’s unemployment rate in

1901 was 4.0 percent.

Yearly household income averaged

$750. Several earners contributed to

this income: 95.9 percent of households

had earnings from husbands, 8.5 percent had earnings from wives, 22.2 percent had earnings from children, 23.3

percent had earnings from boarders or

lodgers, and 14.4 percent of households

had other sources of income. Hourly

wages are shown in table 1.

Annual expenditures for the average U.S. family averaged $769. Of this

amount, 42.5 percent ($327) was allocated for food, 14.0 percent ($108) for

clothing, and 23.3 percent ($179) for

housing. That left $155 for all other

items. On average, household spending exceeded income by 2.5 percent.

There were 7.2 million owner-occupied

housing units in the country, but only

19.0 percent of U.S. families owned a

home, while 81.0 percent were renters.

Chart 1. Economic and demographic indicators, United States, 1901

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

1950

1960

1972-731984-85

1996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
4

100 Years of U.S. Consumer Spending

Table 1. Hourly wages for selected industries, United States, 1901

1901 ............................................. $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $ 0.28

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government

Table 2. Retail prices of selected foods in U.S. cities, 1901

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year

Chart 2. Economic and demographic indicators, New York City, 1901

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-972002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-19

1934-36

1950

1960

1972-731984-85

1996-97

2002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Of these homeowners, 8.3 percent had

encumbrances or liens on their home,

while 10.6 percent did not.

Grocery store prices in 1901 averaged about 14 cents per pound for

round steak or pork chops, 27 cents for

a pound of butter, and 13 cents for 5

pounds of flour. (See table 2.)

New York City

At the beginning of the 20th century,

7.3 million people or 9.6 percent of the

U.S. population resided in New York

State. Of these people, 3.4 million or

46.6 percent, lived in New York City.

In demographic terms, 49.6 percent

of the city’s population was male; 98.0

percent was white; 30.6 percent was

younger than 15; 2.9 percent was 65 or

older; and 36.9 percent was foreign

born, although 52.0 percent of family

heads were foreign born. (See table 3.)

There were over 735,000 households,

among them 29,400 (4.0 percent) that

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
5

1901

Table 3. Distribution by nativity of the

heads of worker families surveyed in

the New York area, 1901

American born ....................... 48.0

Foreign born .......................... 52.0

Canada .................................. 18.0

England ................................. 8.0

Germany ............................... 33.8

Ireland ................................... 30.7

Italy ....................................... 4.4

Russia ................................... 4.6

Scotland ................................ 2.7

Sweden ................................. 2.6

SOURCE: U.S. Commissioner of Labor,

Eighteenth Annual Report 1903

Percent

Chart 3. Economic and demographic indicators, Boston, 1901

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-972002-03

Average family size

2

3

4

5

6

1901

1918-19

1934-36

19501960

1972-731984-851996-97

2002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

consisted of 1 person and 133,000 (18.2

percent) that included 7 or more people.

Average family size in the city was 4.6.

(See chart 2.)

Of the 1.5 million people who worked

in New York City, 75.0 percent were men,

and 25.0 percent were women. The

occupational distribution was as follows: 37.6 percent worked in manufacturing or mechanical pursuits, 32.0 percent in trade or transportation, 24.0

percent in domestic services, 5.7 percent in the professions, and less than 1

percent in agriculture.

Household income in the State averaged $675.5

 Average household expenditures were $814, with 43.7 percent

($356) allocated for food, 13.0 percent

($106) for clothing, and 23.5 percent

($191) for housing. On average, spending for these necessities absorbed 80.2

percent of all household expenditures,

and total household spending exceeded income by 20.6 percent.

Boston

In 1901, 3.7 percent of Americans (2.8

million people) lived in Massachusetts.

5

 Household income and expenditure data

for 1901 are available only for New York

State, not for New York City.

Of those, 560,000 or 20.0 percent lived

in Boston. More than half the residents

of the Commonwealth were foreign

born, with the countries of origin of

many indicated in table 4.

Demographically, 49.0 percent of

the city’s population was male, 97.7 percent was white, 26.5 percent was

younger than 15, 3.6 percent was 65 or

older, and 35.1 percent was foreign

born. There were over 117,000 individual households in the city, 5,000 (4.4

percent) made up of 1 person and

22,000 (19.5 percent) comprising 7 or

more people. Average family size in

Boston was 4.8. (See chart 3.)

Of the quarter-million workers in

Boston, 72.0 percent were men, and 28.0

percent were women. Occupationally,

34.0 percent of workers were employed

in trade and transportation, 32.6 percent in manufacturing or mechanical

pursuits, 26.7 percent in domestic services, 6.2 percent in the professions,

 Nativity

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
6

100 Years of U.S. Consumer Spending

Table 4. Distribution by nativity of the

heads in worker families surveyed in

Massachusetts, 1901

American born ....................... 43.2

Foreign born .......................... 56.8

Canada ................................. 25.4

England ................................. 11.0

Germany ............................... 3.6

Ireland ................................... 46.7

Italy ....................................... 0.4

Russia .................................. 2.3

Scotland ................................ 3.6

Sweden ................................. 4.9

SOURCE: U.S. Commissioner of Labor,

Eighteenth Annual Report 1903

Nativity Percent

percent ($127) for clothing, and 29.9

percent ($263) for housing. (See chart

4 and table 5.) In the aggregate, spending for necessities made up 86.0 percent of all household expenditures, and

total household spending exceeded

income by 28.5 percent.

Perspective

As the country entered the 20th century, the average family included nearly

five people and had an income of $750.

Only 8.5 percent of U.S. households

reported earnings from wives, while 22

and less than 1 percent in agriculture. percent had earnings from children, 23

Household income in Massachusetts averaged $685.6

 Average household expenditures were $880, with 41.7

percent ($367) allocated for food, 14.4

percent had earnings from boarders,

and more than 14 percent had other

sources of income.

The economy was expanding following a recession that had ended in

1900, and there was virtually full employment in the country. In both New

York and Massachusetts, the impact of

immigration was apparent, as more than

half the residents were foreign born.

In both New York and Massachusetts, family expenditures exceeded

household income, by 20.6 percent in

New York and by 28.5 percent in Massachusetts. Additionally, household

spending in both States exceeded the

national average by 14 percent.

In terms of spending for necessities—food, housing, and clothing—

Massachusetts households led, devotTable 5. Expenditures and expenditure shares, United States, New York, and Massachusetts, 1901

Food ........................................................................................ $ 327 42.5 $ 356 43.7 $ 367 41.7

Alcoholic beverages ............................................................... 12 1.6 24 2.9 6 .7

Housing................................................................................... 179 23.3 191 23.5 263 29.9

Apparel and services ............................................................. 108 14.0 106 13.0 127 14.4

Healthcare and insurance ...................................................... 40 5.2 49 6.1 24 2.6

Entertainment ......................................................................... 12 1.6 14 1.7 11 1.2

Reading and education ........................................................... 8 1.1 9 1.1 11 1.3

Tobacco................................................................................... 11 1.4 11 1.4 10 1.1

Miscellaneous ......................................................................... 62 8.1 45 5.5 48 5.5

Religion and charity ............................................................... 10 1.3 9 1.1 13 1.5

Average income per family ................................................... 750 675 685

Expenditures, all items .......................................................... 769 814 880

United States New York Massachusetts

Item

Expenditures Shares Expenditures Shares Expenditures Shares

Chart 4. Expenditure shares, United States, New York, and Massachusetts, 1901

United States

Food

42.5%

Housing

23.3%

Other

20.2%

Clothing

14.0%

New York

Food

43.7%

Clothing

13.0%

Housing

23.5%

Other

19.8%

Massachusetts

Food

41.7%

Clothing

14.4%

Housing

29.9%

Other

14.0%

NOTE: Expenditure shares do not add to 100 due to rounding.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

6

 Household and income expenditure data

for 1901 are available only for Massachusetts, not for Boston.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
7

1901

their counterparts in Massachusetts

for entertainment, although the residents of the Commonwealth allocated

more for healthcare and for reading and

education.

ing 86 percent of their total expenditures to these items. Households all

across the country and those in New

York allotted less, about 80 percent of

their total expenditures.

Boston’s population was older, compared with New York City’s, and this

dynamic may have contributed to differences in spending. Consumers in

New York State spent more than did
9

1918–19

United States

By the end of World War I, the demographics of the country had begun to

change. The United States was more

urbanized, and its population older.

The population in the country was

105 million, a gain of 39 percent in 2

decades. The median age was 25.3 (25.8

for men and 24.7 for women), an increase of 2.4 years since 1900. In terms

of overall population dynamics, 31.8

percent of Americans were younger

than 15, 89.7 percent were white, and

the ratio of men to women was 104.0

men for every 100 women. Average

family size was 4.9. (See chart 5.)

Reflecting the strength of the

economy, unemployment nationally

was 1.4 percent. Women made up 20.4

percent of the U.S. workforce.

Compared with 1901, average family income had more than doubled, to

$1,518 (a 102-percent increase), while

household expenditures had increased

to $1,434 (an 86-percent gain). (See

table 6 for hourly wages in selected industries.) These dollars would have

purchased more than $820 in 1901. Another gauge of the financial health of

U.S. families was that, according to the

Consumer Expenditure Survey for

1918–19, 70.2 percent recorded a yearend surplus, an excess of income over

expenses; 23.7 percent registered a deficit; and 6.1 percent broke even.

In spite of increases in standards of

living in the country, the share of

household expenditures allocated for

1918-19

Chart 5. Economic and demographic indicators, United States, 1918–19

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

1901

1918-19

1934-36

19501960

1972-731984-851996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
10

100 Years of U.S. Consumer Spending

food, clothing, and housing (78.2 percent) was close to that in 1901. What

had changed were allotments within

these categories.

The average U.S. household spent

75.4 percent more for food ($549), but

the household’s expenditure share for

food had decreased to 38.2 percent.

Spending for clothing had increased

120.4 percent to $238, but this category

represented only 16.6 percent of total

expenditures. Housing was where the

significant change took place: spending for housing had increased 86.6 percent, to $334, although the expenditure

share for this category remained 23.3

percent. (The housing expenditure category included costs not only for rent,

but also for fuel, light, furniture, and

furnishing. The 1918–19 survey for the

first time allowed these costs to be itemized.) There were over 10 million owneroccupied housing units in the country.

Retail prices had almost tripled since

1901. A pound of round steak cost an

average of 37 cents, and pork chops,

which had cost 13 cents a pound in

1901, averaged 39 cents in 1918. Five

pounds of flour cost 34 cents, and consumers paid 58 cents for a pound of

butter. (See table 7.)

In terms of housing size and rent,

the average U.S. home had 5.0 rooms,

while the average apartment had 4.5

rooms. Families who lived in their own

homes had a yearly rent (the term used

in the Consumer Expenditure Survey)

of $176. Families living in apartments

or flats paid a yearly rent of $178.

New York City

In the postwar period, 9.8 percent of

Americans (a slight increase from 1900)

or 10.4 million people resided in New

York State. Of these, 5.6 million people

or 54.4 percent (a notable increase)

lived in New York City.

Demographically, 49.7 percent of

the city’s population was male; 95.2

percent was white; 27.2 percent was

age 15 or younger; and 40.4 percent of

the population was foreign born—with

24.1 percent coming from Russia, 19.6

percent from Italy, and 10.2 percent

from Ireland. One-fifth (20.3 percent) of

residents 21 and older were naturalized

citizens, and the illiterate accounted for

7.5 percent of the population. There

were 525,000 households occupying

more than 75,000 homes and apartment

buildings. The average family size, 4.9,

matched that for the country.

In terms of education, 94.0 percent

of New York City children aged 7 to 13

went to school. That percentage fell

with age: 78.7 of those aged 14 to 15,

28.5 percent of those aged 16 to 17, and

9.8 percent of those aged 18 to 20 also

received an education.

Working people in New York City

(72.7 percent of whom were men and

27.3 percent of whom were women)

numbered 2.5 million. (See chart 6.)

They were employed in various jobs:

37.6 percent in manufacturing and mechanical industries, 15.9 percent in clerical occupations, 15.5 percent in trade,

12.1 percent in domestic and personal

service, 9.5 percent in transportation,

6.6 percent in the professions, 2.4 percent in public service, and less than 1

percent in agriculture.

As the city grew in population and

its demography changed, family spending patterns also changed. Average

family income was $1,556, an amount

2.5 percent higher than the national

average, while household expenditures

averaged $1,526, 6.4 percent higher

than for the country as a whole. When

compared with 1901 levels, household

expenditures had increased 87.5 percent; they would have purchased over

$900 in goods and services in 1901 dollars. According to the Consumer Expenditure Survey for 1918–19, 60.8 percent

of New York City families reported a

year-end surplus, 23.9 percent a deficit, and 15.3 percent broke even.

The share that New York City families allocated for food, clothing, and

housing also had increased, to 80.2

percent, countering the national trend.

Allotments for food (42.0 percent) and

Table 7. Retail prices of selected foods in U.S. cities, 1918

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year

Table 6. Hourly wages for selected industries, United States, 1918

1901 ............................................... $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $ 0.28

1918 ............................................... .53 .67 .57 .61 .42 .45 .69 .31 .49

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government
11

1918–19

for housing (21.6 percent) were close

to 1901 levels. The noteworthy increase had taken place in spending on

clothing, for which the share had increased to 16.6 percent.

In terms of housing, the averagesized home in New York City had 6.5

rooms, while the average-sized apartment had 4.5 rooms. New Yorkers—that

is, residents of New York City—who

lived in houses paid a yearly rent of

$332; those living in apartments or flats

paid $204.

Boston

At this time, 3.9 million people or 3.6

percent of Americans (a slight decrease

from 1900) lived in Massachusetts.

Boston’s population had grown to

748,000 residents or 19.4 percent of the

Commonwealth’s population (also a

slight decrease).

Demographically, 49.3 percent of

the city’s population was male; 97.6

percent was white; 27.9 percent was

aged 15 or younger; and 31.9 percent

was foreign born. Of those born in

other countries, 23.9 percent came from

Ireland, 16.9 percent from Canada, 16.0

percent from Italy, and 15.9 percent

from Russia. Slightly more than a fifth

(21.4 percent) of residents 21 and older

were naturalized citizens, and 4.0 percent of the total population was illiterate. The city contained 165,000 individual households, located in 80,000

individual homes and many apartment

buildings. Average family size in Boston, 5.3, exceeded that for the country

as a whole and that for New York City.

In terms of education, 94.7 percent

of Boston children aged 7 to 13 were in

school. Among older children, 83.4 percent of those aged 14 to 15, 43.2 percent of those aged 16 to 17, and 15.2

percent of those aged 18 to 20 also received education.

Boston’s workforce included

350,000 people, 70.2 percent of whom

were men, and 29.8 percent of whom

were women. (See chart 7.) These workers were found in the following occupations: 37.0 percent in manufacturing

and mechanical industries, 15.1 percent

in trade, 14.4 percent in clerical occupations, 13.2 percent in domestic and

personal services, 10.0 percent in transportation, 6.6 percent in the professions, 3.2 percent in public service, and

less than 1 percent in agriculture.

Total average family income was

$1,477, an amount below the national

average and that recorded for New York

City. Average household expenditures,

$1,434, equaled those for the country

as a whole, but were 6.5 percent below

New York City’s.

When compared with 1901 levels,

household expenditures in Boston had

increased 62.8 percent. However, the

purchasing power of these 1919 dolChart 6. Economic and demographic indicators, New York City, 1918–19

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-73

1984-85

1996-97

2002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
12

100 Years of U.S. Consumer Spending

Chart 7. Economic and demographic indicators, Boston, 1918–19

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-19

1934-36

1950

1960

1972-73

1984-851996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-19

1934-36

1950

1960

1972-731984-851996-97

2002-03

Average family size

2

3

4

5

6

1901

1918-19

1934-36

1950

1960

1972-731984-85

1996-97

2002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-73

1984-85

1996-97

2002-03

lars was approximately equal to the

purchasing power of 1901 dollars.

The share of household expenditures that Boston families allocated for

food, clothing, and housing, 81.9 percent, had increased from 1901. This increase was powered by two of the categories: Food, 44.7 percent, and clothing,

15.5 percent. (See table 8 and chart 8.)

In terms of housing, the averagesized home in Boston had 6.2 rooms,

while the average-sized apartment had

4.7 rooms. Bostonians who lived in

houses paid a yearly rent of $182,

whereas those living in apartments or

flats paid $180.

Perspective

At the close of World War I, both New

York City and Boston remained attractive regions for immigration. More than

40 percent of New York City residents

and about one-third of Bostonians

were foreign born.

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States

Table 8. Expenditures and expenditure shares, United States, New York City, and Boston, 1918-19

Food ........................................................................................ $ 549 38.2 $ 641 42.0 $ 641 44.7

Apparel and services ............................................................. 238 16.6 254 16.6 222 15.5

Housing................................................................................... 334 23.3 330 21.6 311 21.7

Rent .................................................................................. 187 13.0 214 14.1 184 12.8

Fuel and light .................................................................... 74 5.2 64 4.2 80 5.6

Furniture and furnishing ................................................... 73 5.1 51 3.3 47 3.3

Miscellaneous ......................................................................... 306 21.3 285 18.7 263 18.3

Average income per family ................................................... 1,518 1,556 1,477

Expenditures, all items .......................................................... 1,434 1,526 1,434

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Expenditure shares do not add to 100 due to rounding.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
13

1918–19

try as a whole. In absolute terms, rental

costs for New York City homes and

apartments exceeded those in Boston

and nationwide.

In contrast to 1901, family incomes

exceeded expenditures in both New

York City (by 2 percent) and Boston

(by 3 percent). These surpluses enabled Boston families to allocate a

greater share of their spending for nonnecessities, while the shares in New

York City and for the country as a whole

remained unchanged.

Moreover, the United States had

become an international center of industrial and financial power. The

country’s unemployment rate was at a

scant 1.4 percent. However, retail

prices had begun to rise sharply, increasing 18 percent in 1918 and 14.6

percent in 1919. Family incomes also

were increasing, having doubled to

$1,518 since 1901.

Despite these rising incomes,

household expenditures for necessities in both New York City and Boston

accounted for a larger share of total exChart 8. Expenditure shares, United States, New York City, and Boston, 1918-19

United States

Food

38.2%

Clothing

16.6%

Housing

23.3%

Other

21.9%

New York City

Food

42.0%

Clothing

16.6%

Housing

21.6%

Other

19.8%

Boston

Food

44.7%

Clothing

15.5%

Housing

21.7%

Other

18.1%

penditures than in 1901. This gain was

consistent with an aging population,

large family size, increased home ownership—27 percent of Americans

owned their own home—and sizeable

gains in retail food prices.

The spending share for food in New

York City had decreased slightly from

1901, while it had increased in Boston.

In both cities, families allocated greater

shares of household spending for food

than did families nationwide. However,

the expenditure share for housing in

both cities was below that for the counSOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
15

1934–36

1934-36

United States

Trends identified in earlier decades,

such as the aging and urbanization of

the U.S. population, continued into the

1930s. In 1930, the population exceeded

122 million, a gain of 16.1 percent since

1920. The median age in the country

had increased 1.2 years to 26.5 (26.7 for

men and 26.2 for women). At this time,

29.3 percent of Americans were younger

than 15, 89.8 percent were white, and

the male-to-female ratio had dropped

to 102.5 men for every 100 women. Average family size had decreased markedly, to 3.6. (See chart 9.)

Following the stock market crash in

late 1929, the country entered its worst

economic depression in history. Unemployment was 15.9 percent in 1931

and rose to 23.6 percent in 1932. Thereafter, it averaged more than 20 percent

until 1936, when it dropped to 16.9 percent. In the 1930s, women made up 21.9

percent of the U.S. workforce.

In the 15-year period following

World War I, average family income had

remained flat, rising only $6 to $1,524.

(See hourly wages in table 9.) Meanwhile, average family expenditures had

risen 5.4 percent to $1,512. These dollars would have purchased $1,387 worth

of goods and services in 1918 dollars,

compared with the $1,434 that families

in 1918 spent, demonstrating the deflationary effect of the Depression on the

dollar’s value. According to the Consumer Expenditure Survey for 1934–36,

59.2 percent of families recorded a

yearly surplus ($149 on average), 37.8

percent recorded a deficit ($203 on average), and 3.0 percent broke even. AvChart 9. Economic and demographic indicators, United States, 1934–36

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

1950

1960

1972-731984-851996-972002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-73

1984-851996-97

2002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
16

100 Years of U.S. Consumer Spending

erage annual family savings were $11.

Technological developments over

the previous 20 years had changed the

kinds and types of goods in the marketplace and their cost. For example,

prices for food and clothing were significantly lower than in 1918–19, while

rents and furnishings were slightly

lower. Electric light and power rates

were lower, but coal prices had increased as the wartime controls on

prices had been lifted.

Food, clothing, and housing occupied a 76.2-percent share of household

spending, a decrease from 1918–19.

Food, at 33.6 percent, was still the

single largest category of expenditure.

(See retail prices of selected foods in

table 10.) A large proportion of U.S. families, however, “did not spend enough

to secure the amount and kinds of food

needed for good health for all the family and for normal growth of the children. Although most of them had sufficient food to avoid actual hunger . . . .”8

The expenditure share for housing

was 32.0 percent, which translated into

an average annual expenditure of $485.

Housing included expenses for fuel,

light, refrigeration, and rent or the rental

value of owned homes. The number

of owner-occupied housing units had

increased to 14 million. Forty percent

of families lived in one-family detached

homes; 25 percent lived in apartments;

and the remainder in semidetached,

row, or two-family homes. Seventyeight percent of families lived in homes

that had electric lights, gas or electricity for cooking, and a bathroom with

an inside flush toilet and hot running

water.

Clothing represented 10.6 percent of

family spending. Employed women

spent the most on clothing, followed

by employed men. For both men and

women, outerwear—coats, sweaters,

suits, shirts, dresses, and blouses—

represented the major expenditure. The

second major clothing category was

footwear, which included shoes, slippers, rubber overshoes, hose, and silk

stockings.

Forty percent of families owned automobiles, almost all of which were purchased secondhand rather than new.

Of families owning autos, 2 percent

owned more than one automobile, and

practically all of them had pooled the

earnings of grown sons and daughters to purchase the second auto. The

average net purchase price (gross price

minus trade-in allowance) was $300.

New York City

By 1930, 12.6 million people or 10.3

percent of the U.S. population lived in

New York State, an increase from the

previous decade. With a population of

6.9 million, New York City accounted

for 55.1 percent of the State’s residents, a decrease from 1920.

Demographically, 51.1 percent of

the city’s population was male, 94.4

percent was white, 40.4 percent was

foreign born, and 18.4 percent was

younger than 15. Of all adults, 15.0 percent were naturalized citizens, and 5.4

percent were illiterate.

Average family size in the city, 3.7,

was equivalent to that nationwide. (See

chart 10.) However, 53.0 percent of all

households contained at most three

people. Thirty-eight percent of city

8

 Faith M. Williams and Alice C. Hanson,

“Money Disbursements of Wage Earners and

Clerical Workers, 1934–36, Summary Volume,” Bulletin No. 638 (Washington: U.S.

Government Printing Office, 1941), p. 3.

Table 9. Hourly wages for selected industries, United States, 1935

1901 ............................................ $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $ 0.28

1918 ............................................ .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................ .58 .55 .49 .72 .71 .61 .78 .42 .62

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government

Table 10. Retail prices of selected foods in U.S. cities,1934

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
17

1934–36

families had children younger than 10,

and 59.5 percent had children younger

than 21. Almost half (49.8 percent) of

New Yorkers were married, 40.2 percent

were single, 8.3 percent were widows

or widowers, and 1.0 percent were divorced.

School enrollment was higher than

it had been in 1918: 97.2 percent of children aged 7 to 13 went to school in the

mid-1930s. Among older children, 93.1

percent of those aged 14 to 15, 55.7 percent of those aged 16 to 17, and 17.5

percent of those aged 18 to 20 received

an education.

The city’s workforce was 67.8 percent male and 32.2 percent female. Although women made up about onethird of the workforce, in 85.8 percent

of households the homemaker (the

woman of the house in survey terminology) was not employed outside the

home. In 59.0 percent of all households, there was only one worker, while

in 21.8 percent, there were two workers; in 9.3 percent, three workers; and

in 5.5 percent, four or more workers.

As for the occupational makeup of

the city’s workers, 14.5 percent provided domestic or personal services,

13.8 percent worked in trade, 8.8 percent worked in hotels and restaurants,

8.7 percent were professionals or semiprofessionals, 6.1 percent worked in the

clothing industry, 6.1 percent worked

in the building industry, and 3.9 percent worked in general manufacturing.

Average yearly family income in the

city was $1,745, an amount 14.5 percent higher than the national average.

Average family expenditures were

$1,839. Besides exceeding family income by 5.4 percent, expenditures were

21.6 percent higher than the national

average.

When compared with 1918–19 levels, household spending had increased

20.5 percent (to $313), countering the

national experience. This sum would

have purchased more than $1,765 in

goods and services in 1918 dollars.

New York City families allotted 36.4

percent of their total spending for food.

This was a decrease from the 1918–19

level, probably due to the decline in

food prices that occurred throughout

the country from 1925 to 1934. Yet, New

York City families allocated a greater

proportion of their spending for food

than did their counterparts in any other

major city. This was because of the

large proportion of families (70.1 percent) reporting expenses for meals at

work, which accounted for 10.8 percent

of their total food expenditures.

To eat at home, New Yorkers spent

$12.80 a week, with 28.2 percent allotted for meat, poultry, and fish; 19.7 percent for fruits and vegetables; 11.3 percent for milk, cheese, and ice cream; 5.6

percent for eggs; and 4.9 percent for

butter, among other items.

Chart 10. Economic and demographic indicators, New York City, 1934–36

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

19501960

1972-73

1984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-73

1984-85

1996-97

2002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
18

100 Years of U.S. Consumer Spending

After spending on food, housing—

which included expenses for fuel, light,

and refrigeration—was the next largest expenditure category, at 32.0 percent. In the 1933-34 Consumer Expenditure Survey, a Bureau of Labor

Statistics program expert noted:

The concentration of shipping,

manufacturing, and trade around the

harbor on which New York City is

situated, combined with the limitation of usable land by the rivers and

marshes, have brought about a competition for living space in this area

not duplicated in any other part of

the United States. The result is a

level of rents which taxes the expenditures of families...for relatively

small dwellings.9

There were over 1.7 million families

living in more than 500,000 dwellings.

The majority of these structures (52.8

percent) were single-family homes, 24.5

percent were for two families, and 22.7

percent housed three or more families.

Only 17.1 percent of the population

lived in a single-family home, while 15.9

percent lived in two-family structures,

and 67.1 percent lived in three-or-morefamily buildings. Larger families, those

averaging 4.0 people, tended to own

their homes; smaller families (averaging 3.2 people) tended to rent. On average, yearly rent for apartments, which

typically had four or fewer rooms, was

$385. The estimated rental value of

owned homes, which had an average

of six or fewer rooms, was $493 per year.

Of rented apartments, 90.6 percent had

a bathroom inside the unit, 94.3 percent had hot running water, and 12.1

percent had a telephone.

Clothing was the third highest expenditure category. Its share was 11.0

percent.

With the nearly 20 percent of the

budget left after purchasing necessities, New Yorkers were able to buy items

that made their lives more convenient.

In the city, 15.2 percent of families

owned an automobile.

Boston

The percentage of Americans living in

Massachusetts, 3.5, continued its decline from previous years, although the

number of Bay Staters actually grew,

to 4.2 million. Boston, with a population of over 780,000, made up 18.6 percent of the Commonwealth’s population, also continuing the decline noted

in previous decades.

Demographically, 49.1 percent of

Boston’s population was male, 97.4

percent was white, 28.4 percent was

foreign born, and 24.8 percent was

younger than 15. Of adults, 22.5 percent were naturalized citizens, and 3.2

percent were illiterate.

In Boston, average family size had

decreased significantly, to 4.0, but still

was larger than that recorded for New

York City or for the country as a whole.

(See chart 11.) However, 51.3 percent

of all Boston households contained at

most three people. In the city, 36.3 percent of families had children younger

than 10, and 56.7 percent had children

under 21. More than half (50.5 percent)

of Bostonians were married, while 40.1

percent were single, 8.2 percent were

widows or widowers, and 1.0 percent

were divorced.

In terms of the education of the

city’s youths, 98.5 percent of children

aged 7 to 13 went to school. Among

older children, 95.5 percent of those

aged 14 to 15, 65.2 percent of those aged

16 to 17, and 26.6 percent of those aged

18 to 20 received an education—all

higher percentages than were noted for

New York City.

As in New York City, Boston’s

workforce was overwhelmingly (69.4

percent) male. Also, as noted in New

York City, in 85.1 percent of households,

the homemaker was not employed outside the family. In 56.8 percent of all

households, there was only one worker;

in 21.0 percent there were two workers;

in 9.6 percent, three workers; and in 6.3

percent, four or more workers.

Boston had a greater share of its

workforce in trade than did New York

City. Of all workers in Boston, 16.4 percent were employed in trade, 8.0 percent were professionals or semiprofessionals, 7.5 percent worked in the

building industries, 7.3 percent were employed as domestics or in personal services, 5.8 percent worked in hotels and

restaurants, 4.9 percent worked in general manufacturing, and 4.1 percent

worked in the iron and steel industry.

The average Boston family’s income

had increased 6.3 percent, to $1,570.

That amount was about even with average income for the country as a

whole, but markedly below the New

York City average. In Boston, average

family expenditures exactly equaled income. When compared with 1918–19

levels, expenditures had increased by

9.6 percent, about half the rate of the

New York City increase. In 1918 dollars, these expenditures would have

bought $1,429 in goods and services.

The share for food had dropped to

35.7 percent, reflecting a nationwide

decline in food prices. The average

Boston family spent just under $11 a

week for food, with meat, poultry, and

fish and other seafood representing

about 25 percent of all food expenditures. Spending for fruits and vegetables accounted for another 19 percent of the average family’s food

budget. Meals at work accounted for

about 3.5 percent of the food budget,

significantly lower than the share recorded for New York City families.

On average, Boston families allocated a greater share of yearly expenditures (35.8 percent) for housing than

did families in New York City or nationwide. There were 180,000 families living in 90,000 dwellings. As in New York

City, single-family homes made up the

largest proportion of dwellings, 49.5

percent; two-family homes accounted

for 25.5 percent; and three-or-morefamily homes made up 25.0 percent.

However, only 24.6 percent of Boston

households lived in a single-family

9

 Faith M. Williams and Alice C. Hanson,

“Money Disbursements of Wage Earners and

Clerical Workers in the North Atlantic Region, 1934–36,” Bulletin No. 637, Volume 1

– New York City (Washington: U.S. Government Printing Office, 1939), p.10.
19

1934–36

ing shares for necessities among

households in New York City and Boston were similar to those recorded in

1918–19 and accounted for over 80 percent of household expenditures.

Food remained the largest category

of expense. (See chart 12 and table 11.)

However, food’s expenditure share had

decreased notably, especially in New

York City and Boston, reflecting significantly lower retail prices. For example, a pound of bacon, which cost

53 cents in 1918, cost only 29 cents in

1934. Retail prices increased for the

first time in 1934, following 4 years of

decline.

New York City residents allocated a

greater proportion of their spending

for food than did their counterparts in

any major city. This was the result

of a large proportion of New York City

families incurring expenses for meals

at work, which accounted for 10.8 percent of total food spending. By conhome; 25.3 percent lived in two-family

structures, and 50.1 percent lived in

three-or-more-family buildings.

Large families (those exceeding four

people) tended to own their home, while

small families (averaging 3.3) tended to

be renters. The yearly rental value for

apartments, which averaged five or

fewer rooms, was $312. The estimated

rental value of owned homes, which

averaged six or fewer rooms, was $419.

Of owned homes, all had an inside flush

toilet, 53.9 percent had a phone, 84.1

percent had running hot water, and 36.3

percent had a garage.

Bostonians allocated 9.8 percent of

their expenditures for clothing, a lower

proportion than that reported for New

York City consumers or for the country

as a whole.

Perspective

In the 15 years after the end of World

War I and following the worst economic depression in U.S. history, the

economic setting changed drastically

for the average household. With unemployment in the country averaging

more than 16 percent during 1934–36,

U.S. families faced severe economic difficulties.

Demographics in the country had

begun to change. The size of the average U.S. family, as well as that of families in New York City and Boston, had

decreased dramatically. Foreign-born

citizens, as a percentage of the total

population, also had declined in New

York City and Boston after the war. Additionally, women made up about 22

percent of the U.S. workforce, continuing a slow, but upward trend.

Family income was virtually unchanged from 1918–19, as falling prices

coupled with soaring unemployment

had held wages in check. Despite the

widespread economic turmoil, spendChart 11. Economic and demographic indicators, Boston, 1934–36

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-191934-36

1950

1960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-731984-851996-972002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average family size

2

3

4

5

6

1901

1918-19

1934-36

1950

1960

1972-731984-85

1996-972002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
20

100 Years of U.S. Consumer Spending

flecting extensive mass transit systems,

such spending was less than 6 percent

in both New York City and Boston.

New York City families allocated a

greater share of their spending for entertainment than did their Boston counterparts, who spent slightly more for

reading and education.

Table 11. Expenditures and expenditure shares, United States, New York City, and Boston, 1934-36

Food .......................................................................................... $ 508 33.6 $ 670 36.4 $ 561 35.7

Housing ..................................................................................... 485 32.0 589 32.0 562 35.8

Apparel and services ............................................................... 160 10.6 202 11.0 154 9.8

Transportation ........................................................................... 125 8.3 93 5.1 90 5.7

Healthcare ................................................................................ 59 3.9 64 3.5 49 3.1

Entertainment ........................................................................... 82 5.4 114 6.2 72 4.6

Personal care products and services ...................................... 30 2.0 35 1.9 25 1.6

Reading and education ............................................................. 7 .5 6 .3 7 .4

Miscellaneous ........................................................................... 32 2.1 37 2.0 35 2.2

Cash contributions ................................................................... 24 1.6 30 1.6 18 1.1

Average income per family ..................................................... 1,524 1,745 1,570

Expenditures, all items ............................................................ 1,512 1,839 1,570

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

trast, for Boston families, meals at work

accounted for only 3.5 percent of the

total food budget.

With the slight increase in home

ownership—to 30 percent—and falling

food prices, housing expenditure

shares had risen notably in both New

York City and Boston and accounted

for about one-third of all household

spending. Falling apparel prices also

had decreased clothing expenditures

for families in these cities.

Automobile ownership had increased dramatically during the 1920s

and early 1930s, reaching 40 percent in

1934–36. As a result, transportation

costs exceeded 8 percent of family

spending in the country. However, reChart 12. Expenditure shares, United States, New York City, and Boston, 1934-36

United States

Food

33.6%

Clothing

10.6%

Housing

32.0%

Other

23.8%

New York City

Food

36.4%

Clothing

11.0%

Housing

32.0%

Other

20.6%

Boston

Food

35.7%

Clothing

9.8%

Housing

35.8%

Other

18.7%

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
21

1950

1950

United States

By 1950, the country was in the midst

of the post-World War II business

cycle (1948-1953), which brought

nearly full employment. Unemployment averaged a mere 4 percent during this 5-year period.

The population had surpassed 150

million, a gain of 10.4 percent since 1940.

The median age had increased to 30.2

years (29.9 for men and 30.3 for women).

The under-15 cohort had continued to

decrease, to 26.9 percent. The percentage of the population that was white

had remained constant at 89.5, and the

male-to-female ratio had dropped further, to 98.6 men for every 100 women.

There were 46.0 million housing units

in the country, of which 51.3 percent

(32.8 million) were owner occupied. Average family size had decreased to 3.0.

(See chart 13.)

In 87.1 percent of families, both a

husband and a wife were present, with

the wife employed in 19.8 percent of

these families. In 58.2 percent of families, there were children younger than

18 living at home. In 42.1 percent of

households, the head of the family was

employed as a craftsman or a machine

operator.

In 1950, with wages double or triple

what they had been in 1935 (see table

12), labor force participation for women

(33.9 percent) and for men (86.4 perChart 13. Economic and demographic indicators, United States, 1950

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

1950

1960

1972-731984-85

1996-97

2002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

1901

1918-19

1934-36

1950

1960

1972-731984-851996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
22

100 Years of U.S. Consumer Spending

cent) reached new highs. While more

women continued to join the labor

force, the participation rate for men

started what was to become a slow decline. At this time, women made up 28.8

percent of the U.S. workforce.

Retail food prices had risen sharply

from 1934–36 levels. The price of a

pound of butter had doubled, from 32

cents to 73 cents. Meat prices also had

risen sharply, with a pound of round

steak increasing from 28 cents to 94

cents and pork chops from 26 cents to

75 cents per pound. (See table 13.)

The average U.S. family’s income of

$4,237 had increased by 178.0 percent

since 1934–36. As for income distribution, 53.4 percent of U.S. families had

incomes less than $5,000, with 25.0 percent earning less than $3,000. The median family income was $3,216.

Average family expenditures during

the same timeframe had increased 151.9

percent, to $3,808. This amount would

have purchased $2,171 worth of goods

and services in 1935 dollars, reflecting

inflationary forces. (Expenditures in

1935 were $1,512.)

Food, clothing, and housing accounted for 68.4 percent of total spending, a decrease from their combined

share in 1934–36.

The share for food, 29.7 percent and

the single largest expenditure category,

was less than the 1934–36 allotment.

The average American in 1950 consumed 3,260 calories per day compared

with 3,250 calories a day in 1934–36,

although individuals consumed 12.6

percent more food in 1950. During the

Depression, the American diet was high

in calories. By the 1950s, a greater selection of foods and widespread use of

refrigeration had contributed to a

change in dietary habits.

New York City

By 1950, residents of the State of New

York numbered 14.8 million, equal to 9.8

of the country’s population, a decrease

from the 1930 census. Of that number,

7.9 million people, 53.2 percent of the

State’s population, lived in New York

City, a slight percentage decrease from

1930.

The city contained 2.4 million households, and average family size was 2.9,

slightly below the national average.

(See chart 14.) Demographically, 66.6

percent of New Yorkers were adults

(aged 21 or older), 20.8 percent were

aged 15 or younger, and 7.7 percent

were 65 or older. The median age in the

city was 34.5, which was notably older

than that for the country as a whole.

The male-to-female ratio was 93.9 men

for every 100 women, 90.2 percent of

the population was white, 22.6 percent

of people were foreign born, and 9.2

percent of married couples lived with

their parents.

In terms of education, 86.7 percent

of children aged 14 to 17 attended

school. The median number of school

years attained by New York City residents was 9.1, with 11.6 percent of the

population having attended school for

less than 5 years.

As for jobs, 51.7 percent of New

Yorkers aged 15 and older were employed, with the unemployment rate at

6.9 percent—7.6 percent for men and

5.6 percent for women. Men constiTable 12. Hourly wages for selected industries, United States, 1950

1901 ............................................ $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $ 0.28

1918 ............................................ .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................ .58 .55 .49 .72 .71 .61 .78 .42 .62

1950 ............................................ 1.59 1.66 1.60 1.79 1.61 1.46 1.55 1.05 1.45

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government

Table 13. Retail prices of selected foods in U.S. cities, 1950

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

1950 ................................................................. .49 .94 .75 .64 .73 .60 .41

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year
23

1950

tuted 67.8 percent of the labor force.

Of persons not seeking work, 60.9 percent were housekeepers. Four out of

five New Yorkers (79.2 percent) worked

in the private sector, 9.6 percent worked

for government, and 11.0 percent were

self-employed.

More than half of all New York City

jobs were in manufacturing and trade

(28.0 percent and 23.1 percent, respectively). The other industries with the

highest levels of employment were

transportation, communications, and

utilities (9.4 percent); professional and

related services (8.9 percent); finance

and real estate (7.4 percent); and personal services (7.1 percent). An additional 4.4 percent of jobs were associated with construction.

The occupational groups with the

largest shares of city workers were

equipment operators (20.9 percent) and

clerks (19.2 percent). Other large occupational groupings were craftsmen

(12.2 percent); professionals, officials,

or proprietors (11.6 percent); service

workers (10.4 percent); professionals

or technicians (10.3 percent); salespersons (7.7 percent); and laborers (3.9

percent).

Average family income had risen to

$5,105, 20.5 percent higher than the

national level and an increase of 192.6

percent from the 1934–36 level in the

city. However, 54.7 percent of New

York City households earned less than

$3,500.

Average family expenditures had

increased 148.7 percent to $4,574, 20.1

percent greater than the average U.S.

family’s expenditures. This sum would

have purchased $2,607 worth of goods

and services in 1935 dollars.

The average New York City household allocated 73.9 percent of its expenditure budget for food, clothing,

and housing—a greater percentage

than that allocated by the average U.S.

family.

At 33.4 percent, food was the largest expenditure category. Housing, including expenses for shelter, light, refrigeration, and water, had an

expenditure share of 28.3 percent, while

the share for clothing was 12.2 percent.

Of the clothing allocation, 52.0 percent

was for women’s and girls’ clothing,

34.1 percent for men’s or boys’ clothing, 1.0 percent for infants’ clothing,

and the remainder for clothing materials and services.

Additionally, 18 percent of New York

City families owned their own home,

and 39 percent of city families owned a

car. Buying and operating a car accounted for 5.7 percent of household

spending. Compared with those in

other large U.S. cities—cities with

populations of at least 1 million—New

Chart 14. Economic and demographic indicators, New York City, 1950

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

19501960

1972-73

1984-851996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

19501960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-731984-85

1996-97

2002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
24

100 Years of U.S. Consumer Spending

York City households gave the most

money to charity: $251.

Boston

In 1950, 3.8 percent of Americans (4.7

million people) lived in Massachusetts,

an increase from the 1930 census, with

17.0 percent of these residents (800,000

people) residing in Boston, a decrease

from 1930.

Boston contained 220,000 households with an average family size of

3.1—slightly larger than that for New

York City. Demographically, 65.3 percent of Boston residents were adults,

22.2 percent were aged 15 or younger

(a significantly higher percentage than

recorded for New York City), and 9.7

percent were aged 65 or older (also a

higher proportion than in New York

City). The median age in Boston was

32.6, younger than in New York City,

but older than in the country as a

whole. The male-to-female ratio was

93.9 men for every 100 women, and 94.7

percent of residents were white. (See

chart 15.) Only 18.0 percent of people

were foreign born, and 8.6 percent of

married couples lived with their parents.

In terms of education, 86.0 percent

of children aged 14 to 17 attended

school, and the median number of

school years completed in Boston was

11.0 (higher than in New York City).

Additionally, only 8.6 percent of the

population had less than 5 years of

schooling.

Boston’s overall unemployment

rate (7.4 percent of those aged 15 and

older) was slightly higher than New

York City’s. The rate for men was 8.8

percent, and for women, 4.8 percent.

Nearly half (49.2 percent) of Bostonians

were employed. Men made up 66.1 percent of the Boston workforce. Of residents not seeking employment, 44.9

percent were homemakers, a significantly lower proportion than in New

York City. In Boston, 78.6 percent of

residents worked in the private sector,

13.9 percent worked for government,

and 7.4 percent were self-employed.

Almost half of all Boston jobs were

in retail or wholesale trade and in manufacturing (24.3 percent and 23.7 percent, respectively). An additional 35

percent were in the following industries: Professional and related services

(11.2 percent); transportation, communication, and utilities (10.0 percent);

public administration (7.4 percent); and

personal services (6.9 percent). Construction accounted for an additional

5.1 percent of jobs.

As in New York City, the two biggest occupational groups were equipment operators (19.6 percent) and clerical workers (19.4 percent). Additional

Chart 15. Economic and demographic indicators, Boston, 1950

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-19

1934-36

1950

1960

1972-73

1984-851996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-97

2002-03

Average family size

2

3

4

5

6

1901

1918-19

1934-36

1950

1960

1972-731984-851996-97

2002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
25

1950

Table 14. Expenditures and expenditure shares, United States, New York City, and Boston, 1950

Food .......................................................................................... $ 1,130 29.7 $ 1,527 33.4 $ 1,300 32.9

Alcoholic beverages ................................................................. 65 1.7 (1

) (1) (1) (1)

Housing..................................................................................... 1,035 27.2 1,296 28.3 1,147 29.1

Apparel and services ............................................................... 437 11.5 560 12.2 439 11.1

Transportation ........................................................................... 510 13.4 377 8.2 395 10.0

Healthcare ................................................................................ 197 5.2 264 5.8 180 4.6

Entertainment ........................................................................... 168 4.4 223 4.9 184 4.7

Personal care products and services ...................................... 85 2.2 94 2.1 90 2.3

Reading and education ............................................................. 58 1.5 89 1.9 67 1.7

Tobacco..................................................................................... 68 1.8 76 1.7 90 2.3

Miscellaneous ........................................................................... 55 1.4 68 1.5 55 1.4

Cash contributions ................................................................... 165 253 195

Personal insurance ................................................................... 177 195 160

Average income per family ..................................................... 4,237 5,105 4,178

Expenditures, all items ............................................................ 3,808 4,574 3,946

(1) Alcoholic beverages are included in food for both New York City and Boston.

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Cash contributions and personal insurance are not included

in expenditure shares.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

occupational groupings included

craftsmen (13.5 percent); service workers (12.8 percent); professionals and

technicians (10.4 percent); sales workers (8.4 percent); managers, officials,

or proprietors (7.6 percent); and laborers (5.7 percent).

In Boston, average family income

had increased 166.1 percent to $4,178,

but was still 1.4 percent less than the

income of the average U.S. household.

Moreover, 51.2 percent of Boston

households earned less than $3,000.

Average household expenditures

had increased 151.3 percent to $3,946,

3.6 percent higher than those for the

average U.S. family. This amount would

have purchased $2,368 worth of goods

and services in 1935 dollars.

The average Boston family allocated

73.1 percent of spending for food, clothing, and housing. This was slightly

less than in New York City. The single

largest category of spending was food

(32.9 percent), followed by housing

(29.1 percent) and clothing (11.1 percent).

In the allocation for clothing, 52.0

percent (equal to the New York City

share) was for women’s and girls’ clothing, 34.2 percent (also equal to New

York City’s share) was for men’s and

boys’ clothing, 1.6 percent (more than

in New York City) was for infants’ clothing, and the remainder was allocated

for clothing materials and services.

Twenty-six percent of Boston families owned their own home, and 42 percent owned an automobile. The purchase and maintenance of an

automobile accounted for 7.6 percent

of household spending.

Perspective

Halfway through the 20th century, the

U.S. economy was expanding. Household income had increased 178 percent

since 1934–36 and was nearly six times

greater than in 1901. In the country as

a whole, and in New York City and Boston, overall standards of living continued to improve.

Nationwide, average hourly wages

in manufacturing had risen from 58

cents an hour in 1935 to $1.59 in 1950.

Women continued to join the labor

force, and their participation rate had

increased to 34 percent. Retail prices,

however, also had risen sharply since

1935: the cost of a pound of butter had

risen from 32 cents to 73 cents, and a

pound of round steak had increased

from 28 cents to 94 cents.

Family size had continued to decline

nationally and in New York City and

Boston to an average of about three

people per family.

Household expenditures for necessities had declined to 68 percent nationally. In New York City and Boston,

however, food, housing, and clothing

still accounted for almost 75 percent of

total household spending (although

this share was down from 80 percent in

1934). In both regions, food remained

the largest expenditure category, with

a share of approximately 33 percent.

Housing was next, with a share of

roughly 29 percent, followed by clothing, which averaged 12 percent. (See

table 14 and chart 16.)

Nationally, home ownership had increased, with 48 percent of all families

owning their own home. Home ownership lagged considerably, however, in

New York City—where only 18 percent

of families owned their home—and in

Boston—where 26 percent were

homeowners.
26

100 Years of U.S. Consumer Spending

higher proportions of their spending

for healthcare, recreation, and reading

and education than did Boston families, who allocated a larger share for

personal care.

Similarly, with widely available public transportation in both cities, 39 percent of New Yorkers owned an automobile, as did 42 percent of Bostonians.

Nationwide, 59 percent of households

owned an auto. Buying and operating

a car accounted for 6 percent of household spending in New York City and

about 8 percent in Boston.

New York City families allocated

Chart 16. Expenditure shares, United States, New York City, and Boston, 1950

United States

Food

29.7%

Clothing

Housing 11.5%

27.2%

Other

31.6%

New York City

Food

33.4%

Clothing

12.2%

Housing

28.3%

Other

26.1%

Boston

Food

32.9%

Clothing

11.1% Housing

29.1%

Other

26.9%

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
27

1960–61

1960-61

United States

By 1960, the U.S. population had surpassed 179 million, a gain of 19.0 percent from 1950. The median age had

decreased to 29.5 (28.7 for men and 30.3

for women), the first decline since 1900.

The decrease reflected significant

growth in the under-15 cohort, which

had surged to 31.1 percent of the population. The percentage of Americans

who were white had decreased slightly

to 88.6 percent, and the male-to-female

ratio had declined further to 97.1 men

for every 100 women.

Although the economy was in a

mild recession between mid-1960 and

early 1961, female workforce participation rates continued their steady climb,

from 33.9 percent in 1950 to 37.7 percent in 1960. In contrast, male participation rates, after peaking in 1950 at

86.4 percent, declined to 83.3 percent

in 1960. Women made up 32.3 percent

of the U.S. workforce. (See chart 17.)

Nationally, unemployment was measured at 5.5 percent in 1960 and peaked

at 7.1 percent in mid-1961. (See table

15 for wages in selected industries in

1960.)

The average family size had increased slightly to 3.1. In 87.4 percent

of families, both a husband and a wife

were present, and the wife was employed in 26.3 percent of these families. Children under age 18 were found

in 60.6 percent of all households. In

16.8 percent of households, there was

only one person, while 8.2 percent of

Chart 17. Economic and demographic indicators, United States, 1960

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

1950

1960

1972-731984-85

1996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

19501960

1972-73

1984-851996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
28

100 Years of U.S. Consumer Spending

households had six or more people.

On average, the head of household

was 48 and had attained an 11th grade

education. In 38.7 percent of households, the head of the family was employed as a craftsman or a machine

operator, while in 26.6 percent of

households, the head was a professional, a manager, or a proprietor. In

13.3 percent of households, all the members were retired.

Average family income in the country was $6,691, 57.9 percent higher than

in 1950. Average family expenditures,

$5,390, had increased 41.5 percent from

1950. This amount would have purchased $4,366 worth of goods and services in 1950 dollars.

Median family income in 1960 was

$5,620. In terms of income distribution

in the country, 36.1 percent of families

had incomes below $5,000, while 18.9

percent had incomes under $3,000.

Food, clothing, and housing accounted for 64.2 percent of family

spending, a decrease from 1950 levels.

Given the rise in family incomes, along

with a reduction in the expenditure

share for necessities, the standard of

living for the average U.S. household

had increased.

For the first time since 1901, a shift

in the relative importance of expenditure categories had taken place. Housing—which included shelter, furnishing, utilities, and operational

costs—had become the largest category of expense in 1960–61, at 29.5

percent. Food was in second place at

24.3 percent, followed by clothing at

10.4 percent.

Families spent proportionately less

for food despite rising retail prices. One

pound of round steak cost $1.06, up 12

cents from 1950. The price of a pound

of pork chops had risen 11 cents to 86

cents per pound. However, the price

of a pound of butter was relatively unchanged over the 10-year period, at 75

cents a pound. Among other retail

prices, a pound of bacon cost 66 cents,

and a half-gallon of milk cost 52 cents.

(See table 16.)

Of housing expenditures, 47.1 percent went for shelter. Fifty-three percent of U.S. families owned their own

home.

In the food category, 79.0 percent

of expenditures went for food at home,

with the remainder allocated for food

away from home.

In all categories of family purchases,

expenditures were higher in 1960–61

than in 1950. More Americans (73 percent) owned automobiles, and they paid

more for their cars. Noteworthy was the

increase in the average family’s charitable giving, from $165 in 1950 to $303

in 1960–61.

New York City

In 1960, 9.4 percent of the U.S. population (16.8 million people) lived in New

York State, a decline from 1950. Of the

State’s population, 46.4 percent (7.8

million people) lived in New York City,

also a decline from 1950. Between

1950 and 1960, the city’s population

decreased by about 100,000 or 1.4

percent.

Government

Table 15. Hourly wages for selected industries, United States, 1960

1901 ............................................ $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $0.28

1918 ............................................ .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................ .58 .55 .49 .72 .71 .61 .78 .42 .62

1950 ............................................ 1.59 1.66 1.60 1.79 1.61 1.46 1.55 1.05 1.45

1960 ............................................ 2.57 2.73 2.62 2.97 2.73 2.21 2.42 1.69 2.25

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services

Table 16. Retail prices of selected foods in U.S. cities, 1960

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

1950 ................................................................. .49 .94 .75 .64 .73 .60 .41

1960 ................................................................. . 55 1.06 .86 .66 .75 .57 .52

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year
29

1960–61

Chart 18. Economic and demographic indicators, New York City, 1960

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-73

1984-85

1996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States

In the city, there were 2.1 million

families, including 1.8 million married

couples. Average family size was 2.9,

as it was in 1950. Of all households,

30.8 percent consisted of two people,

18.3 percent consisted of one person,

and 5.8 percent were made up of six or

more people. The average age of the

household head was 49, slightly older

than the U.S. average.

Demographically, New York City’s

population was aging. The median age

had increased to 35.1 years, notably

higher than that recorded for the country. The 65-and-older cohort had increased to 10.5 percent of the population, while 8.8 percent of New Yorkers

were under 5 years of age, and 68.7

percent were 21 or older. The percentage of the population that was white

had decreased to 85.3, while the percentage of foreign-born residents also

had declined, to 20.0. (See chart 18.)

During 1960, there were over 150,000

live births and close to 90,000 deaths.

Migration into the city accounted for

10.7 percent of the population.

The average city resident had attained 10.1 years of schooling. The

share of the population with less than

5 years of formal education had continued to decline, to 10.5 percent, while

percentages at the other end of the

spectrum rose, to 37.4 for those who

had completed high school and 8.2 for

those who had graduated from college.

As for jobs, 48.1 percent of New

Yorkers worked in white-collar occupations. Nearly one-fifth (18.3 percent) of

household heads were salaried professionals or officials, 15.2 percent held

clerical positions or worked in sales,

and 5.8 percent were self-employed.

Traveling to work was a fact of life:

39.6 percent of residents worked outside the county in which they lived,

and 61.0 percent regularly used public

transportation to get to work. The city’s

workforce was 63.4 percent male, and

the unemployment rate was 5.2 percent.

In 1960, over 42 percent of all city

jobs were in manufacturing and in retail and wholesale trade (25.0 percent

and 17.9 percent, respectively), with an

additional 28 percent in these industries: Finance, insurance, and real estate (7.8 percent); transportation (5.6

percent); public administration (4.6

percent); construction (3.6 percent);

educational services (3.3 percent);

and communications and utilities (2.7

percent).

Average family income, $7,918, had

increased by 55.1 percent from 1950 and

was 18.3 percent higher than that of

the average U.S. household. Yet, 15.2

percent of households had incomes

under $3,000, while 18.5 percent had

incomes that exceeded $10,000. Average family expenditures ($6,353) had

increased by 38.9 percent since 1950

and were 17.9 percent greater than
30

100 Years of U.S. Consumer Spending

those of the average U.S. household.

These expenditures would have purchased $5,146 worth of goods and services in 1950 dollars.

Food, clothing, and housing accounted for 70.0 percent of all household spending, a decrease from 1950,

but higher than the 1960–61 national

average.

Consistent with the experience of the

average U.S. family, the expenditure

share for housing (30.8 percent) exceeded that for food (28.1 percent) and

was the single largest category of expenditure. Clothing expenditures accounted for 11.1 percent of family

spending.

There were approximately 2.8 million

housing units in the city, of which 75.3

percent were rentals. The average

housing unit in the city had 3.9 rooms.

The market value of the median owned

home was $17,000; the average monthly

rent was $73.

In terms of modern conveniences,

88.1 percent of New York City households owned a television, 76.0 percent

had a telephone, 37.6 percent had a

clothes washer, and 13.4 percent owned

an air-conditioner.

Expenditures for the purchase and

operation of automobiles also had increased dramatically. Fifty percent of

New Yorkers, a smaller share than for

the country as a whole, owned an automobile. Almost 14 percent of New

York City families reported purchasing

an auto in 1960–61, compared with 11

percent of families in 1950.

Family charitable giving had increased to $402. Healthcare and personal care accounted for larger shares

of household expenditures, with 20

percent of household healthcare spending allocated for some form of health

insurance or medical service plan.

Boston

In 1960, 2.9 percent of Americans (5.1

million people) lived in Massachusetts,

a decline from 1950. The population of

Boston was 700,000, 13.7 percent of the

Commonwealth’s population and a percentage decrease from 1950. Between

1950 and 1960, Boston lost 13.0 percent of its population base, or 100,000

people.

At this time, there were 165,000 families living in Boston, including 131,000

married couples, with an average family size of 3.0—a decrease from previous decades. Among these households, 31.3 percent were made up of

two people; 17.2 percent consisted of

just one person, and 7.1 percent had

six or more people. The average age of

the household head was 49, as it was

in New York City.

Demographically, Boston’s population was younger than New York City’s.

The median age in Boston was 32.9

years. The 65-and-older cohort represented 12.3 percent of the city’s population, while 9.5 percent was under 5

years of age, and 66.3 percent was 21

or older. Although whites as a percentage of the population had declined to

90.2, the percentage of foreign-born

residents also had declined, to 15.8

percent. (See chart 19.)

During 1960, there were close to

16,000 live births in Boston and 9,000

deaths. Migration into the city that

year accounted for 10.6 percent of the

population.

In early schooling, Boston did better than New York City. The average

Boston resident had attained 11.2 years

of schooling, compared with 10.1 years

in New York City, and just 7.7 percent

of Boston’s population had less than

5 years of schooling. As for the upper

grades, 44.6 percent of Bostonians had

completed high school, while 7.6 percent were college graduates—a smaller

proportion than found in New York City.

There were approximately 239,000

housing units in Boston, of which 68.4

percent were rentals. Approximately 32

percent of families were homeowners,

a higher proportion than found in New

York City. The average housing unit,

at 4.6 rooms, was larger than that in

New York City. The market value of the

median owned home was $13,500, while

the average monthly rent was $78.

Ownership of appliances showed an

improved quality of living. Among Boston households, 86.6 percent owned a

television, 77.8 percent had a telephone,

50.7 percent had a clothes washer, and

3.9 percent had an air-conditioner.

In terms of employment, 43.8 percent of Boston workers held white-collar jobs. Commuting was less common

than in New York City: 16.0 percent of

workers were employed outside the

county in which they lived, and 40.0

percent used public transportation to

get to work. The city’s workforce was

60.2 percent male, and the unemployment rate was 5.0 percent.

As in New York City, jobs in Boston

were concentrated in manufacturing

(23.2 percent) and in retail and wholesale trade (17.6 percent), with an additional 29 percent in the following industries: Public administration (6.4

percent); finance, insurance, and real

estate (6.0 percent); transportation (4.7

percent); educational services (4.7 percent); construction (4.1 percent); and

communications and utilities (2.8 percent). Of heads of household, 23.1 percent were salaried professionals or officials, 12.7 percent worked in clerical

positions or sales, and 3.4 percent were

self-employed.

The average family income of $7,992

had increased by 91.3 percent since

1950 and was 19.4 percent higher than

the national average. However, as in

New York City, 15.2 percent of households earned less than $3,000, while 18.5

percent earned more than $10,000. Average family expenditures, $6,203, had

increased by 57.2 percent since 1950

and were 15.1 percent greater than

those of the average U.S. household.

These expenditures would have purchased $4,962 worth of goods and services in 1950 dollars.

Food, clothing, and housing accounted for 67.9 percent of family

spending, a decrease from 1950. This

amount was greater than the average

U.S. family’s allocation for necessities,

but less than the share spent by New

York City families.

Housing constituted the largest expenditure category for Boston house-
31

1960–61

holds (31.4 percent), as it did for U.S.

and New York City households. This

steep increase reflected both improvement in housing availability and related

growth of home ownership. Food, with

a share of 26.1 percent, was the second largest expenditure category, followed by clothing at 10.4 percent.

There were significant shifts in the

1960 expenditure shares of Boston

families. Food had decreased in relative importance, while housing had increased—reversing a pattern that had

held since 1901. Clothing’s share, however, had decreased, in part because

clothing prices had increased only

modestly during the decade.

Expenditures for the purchase and

operation of automobiles had increased significantly for Boston families, from 7.6 percent of total 1950 expenditures to 11.4 percent of 1960–61

expenditures. About 67 percent of

Boston families owned automobiles in

1960–61, compared with approximately

40 percent in 1950.

The average family in Boston gave

$396 to charity, a significant increase

from 1950. As with New York City families, healthcare and personal care accounted for larger shares of household

expenditures, with 28 percent of household healthcare spending allocated for

some form of health insurance or medical service plan.

Perspective

The 1960s opened with a brief and mild

recession, which was followed by the

longest economic expansion on record.

The 1960s also began a period of significant shifts in household expenditures,

as the country experienced demographic and social changes. Rising family

incomes meant that households spent

proportionally less for necessities, resulting in a higher standard of living.

The average household income of

Boston families had almost doubled

between 1950 and the early 1960s, exceeding that of New York City families.

Yet, New York City families spent more

than their Boston counterparts did.

Wages had increased sharply

throughout the country, as evidenced

by an over-60-percent increase in the

hourly earnings of manufacturing and

mining workers. Prices, in contrast, had

increased moderately, with the cost of

a 5-pound bag of flour rising from 49

cents in 1950 to 55 cents in 1960, and

the price of a pound of round steak rising from 94 cents to $1.06.

Housing expenditures replaced

food as the largest share of the average budget because of a rise in home

ownership. (See chart 20 and table 17.)

While more than half of U.S. families

were homeowners, in New York City

and Boston proportionally fewer families owned a home. However, in both

cities sizable gains in home ownership

took place over the decade. For example, in 1950 only 18 percent of New

Chart 19. Economic and demographic indicators, Boston, 1960

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

6

1901

1918-191934-36

19501960

1972-73

1984-85

1996-97

2002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
32

100 Years of U.S. Consumer Spending

Table 17. Expenditures and expenditure shares, United States, New York City, and Boston, 1960

Food .......................................................................................... $ 1,311 24.3 $ 1,788 28.1 $ 1,621 26.1

Alcoholic beverages ................................................................. 90 1.7 (1

) (1) (1) (1)

Housing ..................................................................................... 1,588 29.5 1,958 30.8 1,949 31.4

Apparel and services ............................................................... 558 10.4 708 11.1 643 10.4

Transportation ........................................................................... 793 14.7 691 10.9 836 13.5

Healthcare ................................................................................ 355 6.6 422 6.6 338 5.4

Entertainment ........................................................................... 217 4.0 239 3.8 223 3.6

Personal care products and services ...................................... 155 2.9 158 2.5 156 2.5

Reading and education ............................................................. 109 2.0 128 2.0 163 2.6

Tobacco ..................................................................................... 95 1.8 108 1.7 114 1.8

Miscellaneous ........................................................................... 119 2.2 155 2.4 157 2.5

Cash contributions ................................................................... 303 402 396

Personal insurance ................................................................... 324 362 359

Average income per family ..................................................... 6,691 7,918 7,992

Expenditures, all items ............................................................ 5,390 6,353 6,203

(1) Alcoholic beverages are included in food for both New York City and Boston.

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Cash contributions and personal insurance are not

included in expenditure shares. Expenditure shares do not add to 100 due to rounding.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

Yorkers were homeowners, but 10 years

later almost a third owned their home.

In Boston, the rate had increased over

the decade from 26 percent to 46 percent. Housing expenditures in both

cities accounted for 3 of every 10 dollars spent.

While food was no longer the largest expenditure category, households

were spending more—1 of every 5

food dollars—on food away from

home. Additionally, the expansion of

Chart 20. Expenditure shares, United States, New York City, and Boston, 1960-61

United States

Food

24.3%

Clothing

10.4%

Housing

29.5%

Other

35.8%

New York City

Food

28.1%

Clothing

11.1%

Housing

30.8%

Other

30.0%

Boston

Food

26.1%

Clothing

10.4%

Housing

31.4%

Other

32.1%

supermarkets and grocery stores

blurred the difference between groceries and food away from home, as the

increased availability of ready-to-go or

prepared and frozen foods accommodated the growing number of dualearner families.

Spending for personal care products, healthcare, and reading and education constituted a larger share of family expenditures, about 11.5 percent.

There also were changes in the demographic characteristics of households, as family size stayed the same in

New York City and declined in Boston.

Educational attainment continued to

rise, permitting about half of workers

to hold white-collar jobs. In the workplace, male participation rates drifted

down, while female participation continued its steady upward trend, from

34 percent in 1950 to 38 percent in 1960.

Overall, women made up about a third

of the U.S. workforce.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
33

1972–73

1972-73

United States

In 1972–73, the U.S. economy was expanding. It would peak in the last quarter of 1973 and then head into a sharp

downturn lasting until March 1975.

The U.S. population had exceeded

200 million, a net gain of 13.3 percent

over the previous decade, and grown

younger from baby boomers having

children. The median age in the country had declined to 28.1 (26.8 for men

and 29.3 for women)—the lowest since

1930—and the under-15 cohort accounted for 28.5 percent of the population. Whites made up 87.5 percent of

the population. (See chart 21.) The

male-to-female ratio stood at 94.8 men

for every 100 women.

The size of the average U.S. family

was 2.9—markedly lower than in 1901

and reflecting a lower birth rate. Nearly

one-fourth of households (23.5 percent)

consisted of just one person; 27.3 percent of households had two members;

and 9.1 percent of households had six

or more members. The head of the average household was 48 years old and

had attained an 11th grade education.

In 27.5 percent of households, the head

had at least attended, if not completed,

college, while in 21.2 percent of households, the family head had attained no

higher than an eighth grade education.

Family heads had the following occupations: 25.2 percent were craftworkers

or machine operators, 22.1 percent were

professionals or managers, 14.4 percent

were retired, 12.0 percent were laborers

or service workers, 10.8 percent were

clerical workers or in sales, and 5.2 percent were self-employed.

Chart 21. Economic and demographic indicators, United States, 1972–73

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-19

1934-36

1950

1960

1972-73

1984-851996-972002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-73

1984-851996-97

2002-03

Average family size

2

3

4

5

1901

1918-19

1934-36

19501960

1972-731984-85

1996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

1950

1960

1972-731984-85

1996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
34

100 Years of U.S. Consumer Spending

The labor force participation rate for

men had declined to 78.8 percent by

1973, while women’s participation rate

had risen to 44.7 percent. Women made

up 36.7 percent of the U.S. workforce.

(Table 18 contains hourly wages for

selected industries.)

Average family income in the

United States was $11,419, an increase

of 70.7 percent from 1960–61. The average U.S. household had an after-tax

income of $9,731, having allocated 14.8

percent of income for taxes: $1,399 in

Federal income taxes, $234 in State and

local income taxes, and $55 in personal

property and other personal taxes. The

market value of the average household’s financial assets was $7,094. Of

all U.S. families, 24.7 percent earned

less than $5,000 during the year,

while 6.8 percent earned more than

$25,000.

Average household expenses were

$8,348, an increase of 54.9 percent from

1960–61. This sum would have purchased $5,972 worth of goods and services in 1960–61 dollars.

Expenditures for food, clothing, and

housing accounted for 57.4 percent of

family spending ($4,794), a marked decline from 1960–61. The share of housing had increased to 30.8 percent

($2,551), while food had declined to 19.3

percent ($1,596), and clothing to 7.8

percent ($647), down dramatically from

almost 14 percent in 1901.

Of total spending on housing, the

average U.S. household allotted 51.4

percent ($1,311) for shelter, 16.0 percent

($409) for fuel and utilities, 17.4 percent

($443) for household operations, and

15.2 percent ($387) for furnishings and

equipment. Most Americans, 58.8 percent, owned their home (33.4 percent

having a mortgage and 25.3 percent

having no mortgage), while 36.8 percent were renters. The estimated market value of the average family home

was $14,283, which translated into an

estimated monthly rental value of $100.

Consumers continued to eat away

from home more often. The average

U.S. household allotted 72.4 percent

($1,155) of food expenditures for food

at home, and 26.4 percent ($422) for

food away from home—more than 1

out of every 4 food dollars. In addition, 1.3 percent ($110) of total spending was for alcoholic beverages. Of

money spent on food eaten at home,

33.3 percent ($385) went for meat, 16.2

percent ($188) for eggs and dairy products, and 14.6 percent ($168) for fruits

and vegetables. (See table 19 for retail

prices of selected foods.)

The average family spent more than

half (54.5 percent or $308) of its clothing

dollars on women’s clothing, 28.2 percent ($216) on men’s garments, and 2.6

percent ($14) on infants’ clothing. An

additional 4.7 percent ($27) went for materials, repairs, alterations, and services.

Table 18. Hourly wages for selected industries, United States, 1970

1901 ............................................. $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $0.28

1918 ............................................. .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................. .58 .55 .49 .72 .71 .61 .78 .42 .62

1950 ............................................. 1.59 1.66 1.60 1.79 1.61 1.46 1.55 1.05 1.45

1960 ............................................. 2.57 2.73 2.62 2.97 2.73 2.21 2.42 1.69 2.25

1970 ............................................. 3.92 4.45 4.47 4.77 4.28 3.31 3.86 2.86 3.83

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government

Table 19. Retail prices of selected foods in U.S. cities, 1970

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

1950 ................................................................. .49 .94 .75 .64 .73 .60 .41

1960 ................................................................. .55 1.06 .86 .66 .75 .57 .52

1970 ................................................................. .59 1.30 1.16 .95 .87 .61 .66

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year
35

1972–73

Given that income had increased significantly and that the share of total

spending for food, clothing, and housing had decreased, the average U.S.

family had more dollars available for

discretionary expenses. The shifts

identified in 1960–61—toward spending on cars, recreation, and medical and

personal care—continued.

The automobile had become a priority, and 80.1 percent of U.S. families

owned at least one. These households

spent $784 (9.5 percent of their expenditures) to buy and finance their autos.

Additionally, they spent $750 (9.1 percent) on auto operating expenses.

U.S. households allocated 8.6 percent ($708) of their spending for recreation. Of this, 1.4 percent ($10) went

for an owned vacation home, 35.3 percent ($250) for vacations or pleasure

trips, and 11.8 percent ($84) for boats

and aircraft.

Additionally, personal care and

healthcare accounted for 8.4 percent

($693) of family spending, with 37.1

percent ($196) of healthcare dollars allocated for health insurance premiums.

The average U.S. household contributed $508 in charitable donations and

allocated $153 (1.9 percent of spending) for reading and education.

New York City

In 1970, 18.2 million people or 9.0 percent of the U.S. population lived in New

York State. This percentage represented a slight decline from 1960. The

population of New York City, 7.9 million, constituted 43.4 percent of the

State’s residents. Although this proportion, too, had declined over the decade, the city’s population had increased by 100,000 or 1.5 percent.

The New York City population, like

the U.S. population, was getting

younger. The median age had declined

2.4 years to 32.7. The age distribution

of the population was as follows: 71.6

percent was 18 or older—with 12.1 percent at least 65—and 7.8 percent was

younger than 5. The city’s population

was 46.9 percent male.

The proportion of residents who

were white had declined to 77.2 percent. (See chart 22.) The black population, in contrast, had grown during the

decade by 53.1 percent and represented

21.1 percent of all New Yorkers. City

residents of Hispanic background—

who could be either white or black—

accounted for 10.3 percent of the population. One out of five New Yorkers

(20.6 percent) listed their heritage as

Italian.

Households in New York City numbered 2.1 million and had an average

size of 2.8 people, a slight decline from

Chart 22. Economic and demographic indicators, New York City, 1972–73

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

1950

1960

1972-731984-851996-972002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

1950

1960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
36

100 Years of U.S. Consumer Spending

1960. The average head of household

was 49, older than the national average. In 17.2 percent of family households, the head was a woman, while

34.7 percent of households consisted

of just one person. One out of every

nine (11.5 percent) New York City families lived below the poverty line.

In 1970, there were close to 137,000

births in the city, a decline of approximately 9.0 percent over the decade, and

about 92,000 deaths.

In terms of education, the average

New Yorker had completed 11.5 years

of schooling. Only 7.6 percent had less

than 5 years, while 46.9 percent had 4

years of high school or more and 6.6

percent had at least 4 years of college.

A new indicator of mobility showed

that close to 60 percent of New Yorkers

had lived in their current home for at

least 5 years.

In terms of employment, 58.0 percent

of working New Yorkers held white-collar jobs: 23.6 percent were in professional or managerial positions, and

34.4 percent were in sales. An additional

10.2 percent worked as craftsmen.

Men constituted 59.5 percent of the

New York City workforce, while in 44.5

percent of married-couple families, the

wife also was employed. Of city residents, 45.0 percent worked outside the

county in which they lived, and 61.8

percent used public transportation to

travel to work.

Although manufacturing still was

the largest employer in the city, by 1970

manufacturing jobs had declined to 20.6

percent of the city’s job base. Retail

and wholesale trade accounted for 19.4

percent of all city jobs, followed by

government (16.2 percent), the service

sector (9.9 percent), education (6.3 percent), and construction (3.5 percent).

Average family income in New York

City had increased 53.6 percent to

$12,159, 6.5 percent greater than for the

average U.S. household. The average

New York City household had an aftertax income of $10,107, having allotted

16.9 percent of income for taxes: $1,542

for Federal income taxes, $477 for State

and local income taxes, and $33 for personal property and other property

taxes. The market value of the financial

assets of the average New York City

family was $8,428.

Average family expenses had risen

52.6 percent to $9,697, 16.2 percent

greater than those of the average U.S.

family. This sum would have purchased $6,400 worth of goods and services at 1960 prices.

Expenditures for food, clothing, and

housing accounted for 64.2 percent of

family spending ($6,226), a significant

decline from 1960–61. The share of

housing had increased to 34.1 percent

($3,303), while the shares for food and

clothing had declined markedly, to 21.1

percent ($2,050) and 9.0 percent ($873),

respectively.

There were approximately 3 million

housing units in the city, with an average size of 3.9 rooms. Single-family

homes represented 11.9 percent of all

housing units. More than one-third of

households (37.3 percent) owned their

own home (24.4 percent having a mortgage and 12.9 percent being mortgage

free), while 60.5 percent were renters.

Only 2.4 percent of these units lacked

all or some indoor plumbing services.

The estimated market value of the average owned home in the city was

$13,223, with an estimated monthly

market rental value of $99.

As for modern conveniences, 55.6

percent of households had at least one

car, 82.3 percent had a telephone, 37.5

percent owned an air-conditioner, and

5.7 percent had a separate home freezer.

Average monthly residential electric

bills were $10.09.

Of total spending on housing, the

average New York City family allotted

58.9 percent of expenditures ($1,946)

for shelter, 11.2 percent ($369) for fuel

and utilities, 17.5 percent ($579) for

household operations, and 12.4 percent ($410) for household furnishings

and equipment.

Food at home accounted for 72.2

percent of food expenditures ($1,481),

a proportion equal to that spent by the

average U.S. family. Of this spending,

New Yorkers allocated 29.0 percent

($429) for meat, 15.0 percent ($222) for

eggs and dairy products, and 16.7 percent ($247) for fruits and vegetables.

Food away from home accounted for

26.7 percent ($547) of total food spending; 1.3 percent ($126) of total expenditures went for alcoholic beverages.

Of spending on clothing, 56.7 percent ($409) went for women’s clothes,

38.1 percent ($274) for men’s clothing,

and 2.4 percent ($17) for infants’

clothes. An additional 2.9 percent ($21)

went for materials, repairs, alterations,

and services.

Although New York City households allocated a greater percentage of

their spending for food, clothing, and

housing than did the average U.S.

household, New Yorkers still had more

dollars ($3,627 versus $3,558) to spend

on discretionary items.

New York City families allotted only

4.7 percent of spending ($458) for the

purchase and financing of an automobile, and 6.3 percent ($607) for auto

operating expenses.

Recreational expenses ($818) constituted 8.4 percent of household

spending, of which 50.1 percent ($410)

went for vacations and pleasure trips,

and 2.9 percent ($24) went for boats,

aircraft, and other vehicles.

Personal care items and healthcare

accounted for 7.3 percent ($712) of

household spending, with health insurance premiums ($159) accounting

for 30.4 percent of healthcare spending. New York City families donated

$567 to charity and allocated $263 (2.7

percent of spending) for reading and

education.

Boston

The proportion of Americans living in

Massachusetts continued to decline.

By 1970, the Commonwealth’s population had reached 5.7 million, but this

figure represented only 2.5 percent of

the U.S. population. In Boston, the

population had declined 8.1 percent

from the 1960 level and stood at 640,000

people—only 11.2 percent of the

Commonwealth’s total inhabitants.
37

1972–73

In Boston, families numbered

142,000 and included on average 2.8

people, a decline from 1960. (See chart

23.) The average head of household

was 48, younger than in New York City

but equivalent to the national average.

In about 1 out of 5 Boston families

(22.5 percent), the head was a woman.

One out of four (25.9 percent) families

included at least one child younger than

6. In approximately 63,000 households

(44.4 percent), there was only one person. One out of every nine Boston

families (11.7 percent) lived below the

poverty level.

Following the national trend and

that in New York City, Boston’s population had grown younger. The median

age in the city had declined to 28.8

years, notably younger than in New

York City. Almost three-quarters of all

Bostonians (71.5 percent) were aged 18

or older, while 7.8 percent were younger

than 5, and 12.8 percent were 65 or older.

Men accounted for 46.1 percent of the

population.

The percentage of residents who

were white had declined to 82.0, while

blacks represented 16.3 percent and

Hispanics 2.8 percent of the city’s

population. More than 1 out of 5

Bostonians (21.8 percent) listed their

ancestry as Irish.

In 1970, there were about 11,600

births in the city—a 27.5-percent decline from 1960—and approximately

8,200 deaths.

The average Bostonian was slightly

more educated than her New York City

counterpart, having completed 12.1,

rather than 11.5, years of schooling. The

majority of Bostonians (53.5 percent)

had at least 4 years of high school,

while at the ends of the education spectrum 5.6 percent had less than 5 years

of education, and 10.3 percent had at

least 4 years of college.

Bostonians were more mobile than

their New York City counterparts. Only

half of all Bostonians (49.9 percent) had

lived in the same residence during the

previous 5 years, compared with 60

percent of New Yorkers.

In terms of employment, 55.0 percent of Boston workers had white-collar jobs—22.5 percent in professional

or managerial positions and 32.5 percent in sales. An additional 10.2 percent worked as craftsmen.

Men constituted 54.4 percent of all

Boston workers, while in 32.8 percent

of married-couple families, the wife also

was employed. Only 19.5 percent of

residents worked outside the city, while

39.3 percent used public transportation

to travel to and from work.

By 1970, the number of jobs in manufacturing had declined to just 17.5 percent of all city jobs. Retail and wholesale trade had become the major employer, representing 19.4 percent of the

job base. Government, with 17.5 perChart 23. Economic and demographic indicators, Boston, 1972–73

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-85

1996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

6

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
38

100 Years of U.S. Consumer Spending

cent of all jobs, equaled manufacturing

in its share of employment. Other important sectors included service (8.1

percent), education (8.4 percent), and

construction (4.4 percent).

Average family income had increased 43.3 percent to $11,449, equivalent to that earned by the average U.S.

family. The average Boston family had

an after-tax income of $9,639, having

allotted 15.8 percent of income for taxes:

$1,395 for Federal income taxes, $356

for State and local income taxes, and

$59 for personal property and other

property taxes. The market value of

the financial assets of Boston families

was $4,533.

Average family expenses were

$9,302, 11.4 percent greater than for the

average U.S. household and an increase of 50.0 percent over 1960–61

Boston family expenses. This outlay

would have purchased $4,218 worth of

goods and services in 1960 dollars.

Expenditures for food, clothing, and

housing represented 59.4 percent of

family spending ($5,531), a significant

decline from 1960–61 but slightly higher

than the national expenditure pattern.

Over the decade, the share of housing

had held constant at 31.5 percent

($2,934), while food and clothing both

had declined markedly to 20.0 percent

($1,860) and 7.9 percent ($737), respectively.

There were over 232,000 housing

units in the city, with an average size of

4.5 rooms. Single-family homes represented 14.6 percent of all housing units.

Only 5.1 percent of units lacked some

or all indoor plumbing services.

 Of Boston households, 47.7 percent owned their own home (31.8 percent having a mortgage and 16.0 percent being mortgage free), while 51.5

percent were renters. The estimated

market value of the average owned

home in Boston was $14,891; its estimated monthly market rental value was

$98. As for appliances and other selected items, 84.3 percent of households had a telephone, 16.9 percent

owned an air-conditioner, and 6.1 percent possessed a separate home freezer.

Average monthly residential electric

bills were $9.50.

Of total spending on housing, the

average Boston family allocated 59.0

percent ($1,732) for shelter, 15.6 percent ($457) for fuel and utilities, 13.6

percent ($400) for household operations, and 11.8 percent ($345) for furnishings and equipment.

Regarding total food expenditures,

food at home accounted for 66.1 percent ($1,860), a share less than that

spent by the average U.S. household.

Of this spending, Boston households

allocated 32.8 percent ($403) for meat,

18.0 percent ($222) for eggs and dairy

products, and 14.9 percent ($183) for

fruits and vegetables. Food away from

home accounted for 33.5 percent ($623)

of total food spending; a related item,

alcoholic beverages, took up 1.6 percent ($149) of total expenditures.

In the clothing expenditure category, 58.3 percent ($368) was spent

on women’s clothes, 36.8 percent ($232)

on men’s clothes, and 1.7 percent ($11)

on infants’ clothing. An additional 2.2

percent ($20) was allocated for materials, repairs, alterations, and services.

After paying for food, clothing, and

housing, Boston families had more

money ($3,877) to allocate for discretionary expenses than did families nationwide, including those in New York

City.

Among Boston households, 74.4

percent had at least one automobile.

They allotted 6.4 percent of their budget ($599) for the purchase and financing of an auto, and 8.9 percent ($835)

for its operating expenses.

Recreational expenses ($815) accounted for an additional 8.8 percent

of household spending, with 47.7 percent ($389) allocated for vacations and

pleasure trips and 7.0 percent ($57) for

boats, aircraft, and other vehicles.

Personal care items and healthcare

accounted for 7.4 percent of household

spending ($687), with health insurance

premiums ($185) accounting for more

than one-third (34.2 percent) of

healthcare spending. Boston families

donated $459 to charity and allocated

$362 (3.9 percent of spending) for reading and education.

Perspective

At the beginning of the 1970s, the U.S.

economy was expanding, but by 1973,

it was in a sharp downturn. Between

1960 and 1970, wages had continued

to climb, as evidenced by a 53-percent

increase in manufacturing wages and a

63-percent increase in miners’ earnings.

Prices, on the other hand, had increased

more modestly.

In New York City, household incomes had surpassed those in Boston

by 6 percent, but overall spending by

New Yorkers was only 4 percent higher.

New Yorkers and Bostonians spent

about 95 percent of their after-tax incomes, while families nationwide spent

only 86 percent.

Household spending patterns continued to change as families allotted

less of their incomes for necessities.

Changes in the socioeconomic and

demographic characteristics of families

contributed to these modifications.

Women’s share of the U.S. workforce had risen to 37 percent. The

country as a whole had begun to get

younger, as had the populations of

New York City and Boston. Average

family size also had decreased, with

families in New York City and Boston

being slightly smaller than the average U.S. family.

Rising incomes had permitted more

people to buy homes in the suburbs

and purchase cars. These trends had

shrunk the population in central cities

like Boston. Educational attainment

had increased as over 30 percent of

New Yorkers and Bostonians had

graduated from college. Additionally,

58 percent of New Yorkers and 55 percent of Bostonians held white-collar

jobs. Throughout the country, local

and regional economies had begun to

shift away from manufacturing and into

services such as trade, education,

healthcare, and government.

New York City households allotted

a higher share of their expenditures (64
39

1972–73

Table 20. Expenditures and expenditure shares, United States, New York City, and Boston, 1972-73

Food .......................................................................................... $ 1,596 19.3 $ 2,050 21.1 $ 1,860 20.0

Alcoholic beverages ................................................................. 110 1.3 126 1.3 149 1.6

Housing ..................................................................................... 2,551 30.8 3,303 34.1 2,934 31.5

Apparel and services ............................................................... 647 7.8 873 9.0 737 7.9

Transportation ........................................................................... 1,597 19.3 1,322 13.6 1,532 16.5

Healthcare ................................................................................ 528 6.4 523 5.4 526 5.7

Entertainment ........................................................................... 708 8.6 818 8.4 815 8.8

Personal care products and services ...................................... 165 2.0 189 2.0 161 1.7

Reading and education ............................................................. 153 1.9 263 2.7 362 3.9

Tobacco ..................................................................................... 130 1.6 155 1.6 174 1.9

Miscellaneous ........................................................................... 86 1.0 74 .8 52 .6

Cash contributions ................................................................... 508 567 459

Personal insurance and pensions ............................................ 734 623 701

Average income per family ..................................................... 11,419 12,159 11,449

Expenditures, all items ............................................................ 8,348 9,697 9,302

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Expenditure shares do not add to 100 due to

rounding. Cash contributions and personal insurance are not included in expenditure shares.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

creasing black population, and a smaller

proportion of foreign-born residents.

One out of five New Yorkers listed their

ancestry as Italian, while 1 out of 5

Bostonians claimed Irish lineage.

In 1974—largely as a result of the

OPEC oil embargo, which drove up energy prices by 29.6 percent and led

to higher food prices—inflation increased 11 percent, the steepest gain

since World War II. Unemployment

followed, peaking at 9 percent in May

1975.

percent) for necessities than did families in Boston and nationwide, which

had expenditure shares of about 58

percent each. (See chart 24.) New Yorkers spent more for clothing and housing, while spending shares for food

were relatively similar in all locations.

Despite its high cost, beef constituted the single largest item of food

consumed at home in both New York

City and Boston. Bostonians, however, spent a larger share of their grocery budgets for eggs and dairy products, while New Yorkers spent more for

fruits and vegetables. Spending for

food away from home had increased

compared with a decade earlier, accounting for 27 percent of total food

spending in New York City and over a

third in Boston.

The continued rise in the quality of

living had led to larger expenditures for

recreation, education, reading, and

transportation, as well as for personal

insurance and pensions. (See table 20.)

Both New York City and Boston saw

significant changes in population, with

a declining white population, an inChart 24. Expenditure shares, United States, New York City, and Boston, 1972-73

United States

Food

19.3%

Clothing

7.8%

Housing

30.8%

Other

42.1%

New York City

Food

21.1%

Clothing

9.0%

Housing

34.1%

Other

35.8%

Boston

Food

20.0%

Clothing

7.9%

Housing

31.5%

Other

40.6%

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
41

1984–85

1984-85

United States

By 1980, the U.S. population had exceeded 226 million, an increase of 11.5

percent from the previous decade. The

median age in the country had increased almost 2 years to 30.0 (28.8 for

men and 31.2 for women), countering

the decline that had begun in 1960.

The percentage of the population

younger than 15 also had declined further, to 22.6. Population dynamics in

the country had continued to shift: the

percentage of Americans who were

white had fallen further, to 83.1, and

the male-to-female ratio had started to

level off at 94.5 men for every 100

women.

The size of the average U.S. family

had declined notably, to 2.6 people.

(See chart 25.) More than a quarter of

households (27.2 percent) consisted of

only one person, 30.0 percent of two

people, and 4.5 percent of six or more

people. In statistical terms, the average household contained 0.7 children

younger than 18; 0.3 people aged 65 or

older; and 1.4 wage earners, whose ages

typically fall between those of the other

two groups.

The average age of the reference

person who owned or rented the

home—the individual formally referred

to as household head—was 46.7. In 43

percent of households, this individual

had attended college; in 43 percent, he

or she had attended high school; while

in 13 percent, this individual had attended only elementary school. Reference persons held the following types

of jobs: 21.3 percent were managers or

professionals, 17.7 percent were in

Chart 25. Economic and demographic indicators, United States, 1984–85

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
42

100 Years of U.S. Consumer Spending

sales or administrative positions, 7.1

percent held service jobs, 7.1 percent

were in the crafts or repair fields, and

13.5 percent were laborers or operators.

Some, 6.6 percent, were self-employed,

and 16.0 percent were retired.

Nationally, the economy was expanding again in 1984, following a

sharp, 16-month recession that had

ended in November 1982 after unemployment had peaked at 10.8 percent.

Male participation in the labor market

had continued its slow decline and

stood at 76.4 percent in 1984, but female participation had continued to

edge up, reaching 53.6 percent. As a

result, women made up 42.1 percent of

the U.S. workforce. Prices had risen

sharply from the previous decade: a

market basket of consumer goods and

services that had cost $100 in 1972 cost

$249 in 1984. Wages had increased after 1970 but not at comparable rates.

(See table 21 for 1979 wages.)

Average family income in the country had risen to $23,464, an increase of

105.5 percent since 1972–73. The income of the average family came from

several sources: 77.5 percent ($18,158)

from wages and salaries; 4.8 percent

($1,123) from self-employment income;

10.3 percent ($2,420) from Social Security and private and government retirement; 4.0 percent ($938) from interest,

dividends, rental income and other

property income; 1.2 percent ($282)

from unemployment and workers’ compensation and from veterans’ benefits;

1.1 percent ($252) from public assistance, Supplemental Security Income,

and food stamps; 0.8 percent ($191)

from regular contributions of support;

and 0.3 percent ($81) from other

sources.

The average U.S. family had an after-tax income of $21,237, having allocated 9.5 percent of income for taxes:

$1,733 in Federal income taxes, $431 in

State and local income taxes, and $63

for other taxes. Of all U.S. families,

those in the lowest fifth of the income

distribution had average yearly earnings of $3,169, while those in the highest fifth earned $56,426 on average.

Average household expenditures,

$21,975, had grown 165.7 percent. This

amount would have purchased $8,790

worth of goods and services in 1972

dollars.

Expenditures for food, clothing, and

housing accounted for 51.4 percent of

household spending, continuing the

steady decline recorded over the previous 80 years in the share devoted to

necessities. Compared with 1972–73,

the share for food had decreased to

15.0 percent ($3,290), while clothing had

declined to 6.0 percent ($1,319), and

housing had held steady at 30.4 percent ($6,674). Among U.S. families, 63

percent owned their own home (38 percent with a mortgage and 25 percent

without a mortgage), while 38 percent

were renters. The estimated market

value of the average home was $47,269,

and its estimated monthly rental value

was $292.

In 85 percent of households, there

was at least one automobile. Moreover,

for the first time, the purchase of a vehicle accounted for a greater expenditure share than did total food at home

for the average family.

Of total spending on housing, the

average U.S. family allotted 52.3 percent ($3,489) for shelter; 24.5 percent

($1,638) for utilities, fuel, and public

services; 4.7 percent ($315) for household operations; and 13.9 percent

($926) for household furnishings and

equipment.

Of the overall food bill, 59.9 percent

($1,970) was for food at home, while

40.1 percent ($1,320) was spent for food

away from home. Alcoholic beverages

took up 1.3 percent ($275) of total

spending. Of grocery money, 29.7 percent ($586) was spent on meat, poultry,

fish, and eggs; 15.9 percent ($313) on

fruits and vegetables; 13.3 percent

($262) on cereals and bakery products;

and 12.8 percent ($253) on dairy products. (See table 22 for retail prices of

selected foods.)

A breakdown of clothing expenditures showed that 39.7 percent ($524)

went for women’s and girls’ clothing,

26.5 percent ($350) went for men’s and

boys’ clothing, 3.8 percent ($50) went

for children’s clothes, 14.0 percent

($185) went for footwear, and 16.0 percent ($211) was allotted for other clothing products and services.

As mentioned above, 85 percent of

U.S. households owned at least one

automobile, with the average household owning 1.9. Households allotted

19.6 percent of spending ($4,304) for

transportation: 8.3 percent ($1,813) for

auto purchases; 4.8 percent ($1,058) for

gasoline and motor oil; and 5.4 percent

($1,178) for other vehicle expenses,

including financing.

Table 21. Hourly wages for selected industries, United States, 1979

1901 ............................................ $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $0.28

1918 ............................................ .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................ .58 .55 .49 .72 .71 .61 .78 .42 .62

1950 ............................................ 1.59 1.66 1.60 1.79 1.61 1.46 1.55 1.05 1.45

1960 ............................................ 2.57 2.73 2.62 2.97 2.73 2.21 2.42 1.69 2.25

1970 ............................................ 3.92 4.45 4.47 4.77 4.28 3.31 3.86 2.86 3.83

1979 ............................................ 6.69 6.16 9.26 8.18 7.85 5.06 5.28 5.36 (n/a)

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government
43

1984–85

Table 22. Retail prices of selected foods in U.S. cities, 1984

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

1950 ................................................................. .49 .94 .75 .64 .73 .60 .41

1960 ................................................................. .55 1.06 .86 .66 .75 .57 .52

1970 ................................................................. .59 1.30 1.16 .95 .87 .61 .66

1984 ................................................................. 1.07 2.91 2.38 1.86 2.11 1.00 1.13

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year

Additionally, the average U.S.

household allocated 4.8 percent of

spending ($1,049) for healthcare (with

35.3 percent or $370 allotted for health

insurance), 4.8 percent ($1,055) for entertainment, 1.3 percent ($289) for personal care products and services, and

2.0 percent ($435) for reading and education. Families gave $706 to charities.

New York City

Between 1970 and 1980, the population

of New York State had declined 3.7 percent, and in 1980 it stood at 17.6 million. Within the State’s borders resided

7.8 percent of the U.S. population.

During the same period, the population

of New York City had decreased 10.4

percent to 7.1 million, representing 40.3

percent of the State’s population.

Demographically, the median age of

the city’s residents had remained constant at 32.7. Three-quarters of New

Yorkers were 18 or older, with 6.7 percent younger than 5 and 13.5 percent

65 or older.

The percentage of New Yorkers who

Chart 26. Economic and demographic indicators, New York City, 1984–85

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

1950

1960

1972-731984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Average family size

2

3

4

5

1901

1918-19

1934-36

19501960

1972-73

1984-85

1996-972002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
44

100 Years of U.S. Consumer Spending

were white had continued to decline

and stood at 61.5. (See chart 26.) Blacks

represented 25.3 percent of the population, and Hispanics—who could be

of any race—19.9 percent. Approximately 44 percent of all city residents

had been born beyond the borders of

New York State.

Average family size was 2.5 people,

a notable decline from the previous

decade. Married couples made up 43.1

percent of households, female-headed

families accounted for 16.6 percent, and

one-person households constituted

32.7 percent. More than one-sixth of

families (17.2 percent) lived below the

poverty line.

During 1980 there were 103,000 live

births in the city, a decline of 24.8 percent compared with births in 1970.

There were 72,500 deaths.

In terms of education, 60.2 percent

of New Yorkers had 12 or more years of

schooling, and 17.3 percent had 16

years or more—a notable increase in

the percentage of residents who had

completed college.

The manufacturing sector continued

to shed jobs and constituted just 17.4

percent of the city’s job base. The professional and related sector had become the city’s largest employer, with

23.1 percent of all jobs. Next came retail

and wholesale trade at 18.1 percent;

government at 17.6 percent; and finance, insurance, and real estate at 12.0

percent. In New York City, 4.8 percent

of workers were self-employed.

Women made up 45.4 percent of the

city’s workforce. Although the overall

city unemployment rate was 9.6 percent,

the rate for women was only 7.7 percent. In terms of workers per household, 20.5 percent of families contained

no employed persons, while in 43.4

percent of families two or more people

were employed.

Only 6.2 percent of New York City

residents worked outside the city.

When they commuted to work, 20.1

percent drove alone, 9.9 percent were

members of carpools, and 55.8 percent

used public transportation.

Average family income had risen

141.3 percent since 1972–73 to $29,339,

25.0 percent higher than the income of

the average U.S. family. The average

New York City family’s income derived

from numerous sources: 75.5 percent

($22,144) from wages and salaries; 8.5

percent ($2,494) from self-employment

income; 9.2 percent ($2,711) from Social Security and from private and government retirement; 4.8 percent ($1,401)

from interest, dividends, rental income,

and other property income; 0.6 percent

($176) from unemployment and workers’ compensation and from veterans’

benefits; 1.0 percent ($290) from public

assistance; and 0.2 percent ($72) from

other sources.

The average New York City household had an after-tax income of $26,983,

having allotted 8.0 percent of income

for taxes: $1,730 for Federal income

taxes, $587 for State and local income

taxes, and $39 for other taxes.

Average New York City family expenses were $24,907, 13.3 percent

greater than the expenditures of the

average U.S. household and 156.9 percent more than New Yorkers had spent

a decade earlier. The $24,907 would

have purchased $10,710 worth of goods

and services in 1972–73 dollars.

Expenditures for food, clothing, and

housing accounted for 55.0 percent

($13,704) of family spending, a notable

decline from the 1972–73 level. The

shares of housing (31.1 percent,

$7,753), food (16.4 percent, $4,091),

and clothing (7.5 percent, $1,860) had

all decreased.

There were 2.8 million housing units

in the city. Of these, 11.7 percent were

single-unit structures, and 64.5 percent

contained five or more units. Fortynine percent owned their home (31 percent having a mortgage and 18 percent

having no mortgage), while 51 percent

rented. The median value of an owned

home in the city was $56,778, while the

average monthly rent was $398. Only

3.8 percent of units lacked complete

plumbing facilities, while 46.3 percent

had air-conditioning.

Of total spending on housing, the

average city household allotted 57.2

percent ($4,431) for shelter, a marked

shift from the previous decade; 24.6

percent ($1,904) for utilities and fuel;

7.9 percent ($614) for operations and

supplies; and 10.4 percent ($803) for

furnishings and equipment.

Food at home accounted for 54.8

percent ($2,240) of food expenditures,

a notable decline from the previous

decade. Of this, the average city household allocated 31.3 percent ($700) for

meat, fish, poultry, and eggs; 18.4 percent ($413) for fruits and vegetables;

13.8 percent ($308) for cereals and

baked goods; and 13.3 percent ($297)

for dairy products. Food away from

home accounted for 45.2 percent

($1,851) of total food spending; alcoholic beverages constituted 1.3 percent

($331) of total expenditures.

Of total spending on clothing, 41.3

percent ($768) was allocated for

women’s clothing, a notable decline

from the previous decade; 22.2 percent

($412) was for men’s clothes; 3.2 percent ($59) was for infants’ clothing; 14.0

percent ($260) was for footwear; and

19.4 percent ($361) was for other products and services.

The average New York City household owned 1.2 automobiles, compared

with 1.9 for the average U.S. household. City families allotted 15.8 percent ($3,924) of their spending for

transportation expenses—5.2 percent

($1,297) for the purchase of automobiles and 3.3 percent ($815) for gasoline and motor oil. Both the relative

shares and the actual dollar outlays on

these items were less than those of the

average U.S. household. New Yorkers

allotted 4.8 percent ($1,192) for other

vehicle expenses, including financing

costs.

Additionally, New York City households allocated 4.1 percent ($1,029) of

total spending for healthcare (with 24.2

percent or $249 of this spending allotted for health insurance), 4.5 percent

($1,121) for entertainment, 1.3 percent

($315) for personal care products, and
45

1984–85

2.3 percent ($574) for reading and education. New York City households gave

an average of $945 in charitable contributions.

Boston

By 1980, the population of Massachusetts had surpassed 5.7 million, a gain

of less than 1 percent from 1970. The

total represented 2.5 percent of the U.S.

population. During the same timeframe,

the population of Boston had declined

12.2 percent to 563,000, or 9.9 percent

of the Commonwealth.

There were 218,000 households in

Boston, with an average family size of

2.4—slightly smaller than that of New

York City families. Married couples

made up just 33.6 percent of these

households, women-headed households accounted for 16.2 percent, and

36.8 percent consisted of just one person. One-sixth (16.7 percent) of families lived below the poverty level.

On average, Bostonians were

younger than New Yorkers: the median

age in Boston remained constant at

28.9. In terms of age groups, 78.4 percent of the population was 18 or older,

with 5.3 percent younger than 5 and

12.7 percent aged 65 or older.

The percentage of Bostonians who

were white had declined significantly

to 70.5. Blacks made up 22.5 percent of

the population, and Hispanics—who

could be of any race—6.5 percent. Of

Boston residents, 58 percent had been

born in Massachusetts.

During 1980, there were 7,700 live

births in the city, a decline of 33.6 percent compared with the number in 1970.

There were 5,800 deaths.

More than two-thirds (68.4 percent)

of Bostonians had 12 or more years of

schooling, and 20.3 percent had at least

16 years. Both of these proportions

were higher than those recorded in New

York City.

There were approximately 240,000

housing units in the city, of which 15.6

percent were single-unit structures, and

42.8 percent contained 5 or more units.

Among Boston households, 55 percent

owned their home (37 percent having a

mortgage and 18 percent living mortgage free), while 45 percent were renters. The median value of an owned

home in the city was $67,240, and the

average monthly rent was $444. Only

2.5 percent of units lacked complete

plumbing services, while 30.5 percent

had air-conditioning.

The decline in manufacturing employment continued, with other industries absorbing more workers. The

manufacturing sector accounted for

just 14.3 percent of all Boston jobs. As

in New York City, the leading Boston

employer was the professional and related sector, which represented almost

a third (31.6 percent) of the city’s job

base. This was followed by government at 19.7 percent; retail and wholesale trade at 16.8 percent; and finance,

insurance, and real estate at 9.0 percent. In Boston, 3.4 percent of workers

were self-employed.

The unemployment rate in Boston

was 9.1 percent, lower than that recorded in New York City. The unemployment rate for women, 6.1 percent,

also was lower than the corresponding

rate in New York City. Women made up

almost half (47.6 percent) of Boston’s

workforce. (See chart 27.) In 19.1 percent of Boston’s households, no one

was employed, while in half (49.2 percent) of all households, two or more

people were working.

One out of four Bostonians (25.2

percent) worked outside the city.

When they commuted to work, 33.2

percent drove alone, 14.1 percent were

members of carpools, and 33.7 percent

used the public transit system.

In Boston, average family income

had risen 138.6 percent to $27,318, 16.4

percent higher than that of the average U.S. family. The average Boston

household had an after-tax income of

$23,966, having allotted 12.3 percent

of income for taxes: $2,423 for Federal

income taxes, $755 for State and local

income taxes, and $175 for other taxes.

For the average family, 78.0 percent

of income ($21,304) came from wages

and salaries; 8.4 percent ($2,298) came

from Social Security and from private

and government retirement; and 8.1

percent ($2,217) came from interest,

dividends, and rental income.

Over the previous decade, average

family expenses had increased 158.1

percent to $24,004, 9.2 percent greater

than those for the average U.S. household. This amount of money would

have purchased $10,082 worth of

goods and services in 1972 dollars.

Expenditures for food, clothing, and

housing accounted for 53.2 percent

($12,783) of spending, a decline from

1972–73. The shares for food (12.5 percent, $3,006) and clothing (5.3 percent,

$1,280) had declined, while the share

for housing (35.4 percent, $8,497) had

increased from 1972–73.

Of total spending on housing, the

average Boston family allotted 60.2

percent ($5,114) for shelter, 20.4 percent ($1,732) for utilities and fuel, 8.3

percent ($706) for household operations and supplies, and 11.1 percent

($946) for furnishings and equipment.

Food at home accounted for 49.7

percent ($1,493) of food expenditures,

a significant decline from the previous

decade. Of this spending, Boston families allocated 32.2 percent ($480) for

meat, poultry, fish, and eggs; 17.4 percent ($260) for fruits and vegetables;

13.8 percent ($206) for dairy products;

and 13.6 percent ($203) for cereals and

baked goods. Food away from home

accounted for 50.3 percent ($1,513) of

total food spending; purchases of alcoholic beverages amounted to 1.3 percent ($305) of total expenditures.

Of spending on clothing, 38.4 percent ($492) was for women’s clothing,

a notable decline from the previous

decade; 26.9 percent ($344) was for

men’s clothing, another decline; 3.8

percent ($49) was for infants’ clothes;

9.8 percent ($125) was for footwear;

and 20.9 percent ($268) was for other

apparel products and services.

The average Boston household

owned 1.4 automobiles, less than the

1.9 owned by the average U.S. family.

Families allocated 19.3 percent ($4,637)

of their total spending for transporta-
46

100 Years of U.S. Consumer Spending

tion. Itemized expenses included 8.6

percent ($2,071) for the purchase of

automobiles; 3.7 percent ($880) for

gasoline and motor oils; and 5.1 percent ($1,230) for other vehicle expenses, including financing costs.

Additionally, Boston households

allotted 4.2 percent ($1,013) of total

spending for healthcare (with 31.8 percent or $322 of this spending allocated

for health insurance), 5.2 percent

($1,252) for entertainment, 0.9 percent

($227) for personal care products, and

3.7 percent ($886) for reading and education. Boston households gave $606

in charitable contributions.

Perspective

By the mid-1980s, the U.S. economy

was expanding, following a 16-month

recession that had ended in late 1982.

During the previous decade, both earnings and prices had increased sharply.

For example, hourly earnings in the

manufacturing sector had increased by

71 percent, while the cost of a pound

of round steak had increased by 124

percent.

Demographically, the average age in

the country had increased 2 full years

to 30. However, the average New

Yorker was 2.5 years older, while the

average Bostonian was 1 year younger

than 30. Average family size in the country had continued to decrease and was

2.6 people; New York City and Boston

families were slightly smaller. Women

made up 42 percent of the U.S. workforce.

Household income in New York

City exceeded that in Boston by more

than 7 percent, but spending in New

York City was only 4 percent higher.

New Yorkers spent about 92 percent

of their after-tax income, while in Boston spending exceeded after-tax income by $38. In contrast, the average

U.S. household spent 3.5 percent more

than its after-tax income.

In total, New York City households

allocated 55.0 percent of their spending for necessities, while Boston families allotted just 53.2 percent, and U.S.

families spent even less: 51.4 percent.

Spending patterns indicate that, in

terms of expenditure share (35.4 percent) and actual dollars, Boston families spent more for housing than did

families in New York City (31.1 percent)

and in the country as a whole (30.4 percent). (See chart 28 and table 23.) In

Boston, 55 percent of families owned

their home, while only 49 percent of

New York City families were homeowners.

New Yorkers, though, allocated

larger shares of spending for food

(16.4 percent) and clothing (7.5 percent) than did families in Boston or in

the country as a whole. Yet, Boston

households spent more (50.3 percent)

Chart 27. Economic and demographic indicators, Boston, 1984–85

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-19

1934-36

19501960

1972-731984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

6

1901

1918-19

1934-36

1950

1960

1972-731984-85

1996-972002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
47

1984–85

Table 23. Expenditures and expenditure shares, United States, New York City, and Boston, 1984-85

Food .......................................................................................... $ 3,290 15.0 $ 4,091 16.4 $ 3,006 12.5

Alcoholic beverages ................................................................. 275 1.3 331 1.3 305 1.3

Housing ..................................................................................... 6,674 30.4 7,753 31.1 8,497 35.4

Apparel and services ............................................................... 1,319 6.0 1,860 7.5 1,280 5.3

Transportation ........................................................................... 4,304 19.6 3,924 15.8 4,637 19.3

Healthcare ................................................................................ 1,049 4.8 1,029 4.1 1,013 4.2

Entertainment ........................................................................... 1,055 4.8 1,121 4.5 1,252 5.2

Personal care products and services ...................................... 289 1.3 315 1.3 227 .9

Reading and education ............................................................. 435 2.0 574 2.3 886 3.7

Tobacco ..................................................................................... 228 1.0 240 1.0 214 .9

Miscellaneous ........................................................................... 451 2.1 503 2.0 514 2.1

Cash contributions ................................................................... 706 3.2 945 3.8 606 2.5

Personal insurance and pensions ............................................ 1,897 8.6 2,220 8.9 1,567 6.5

Average income per family ..................................................... 23,464 29,339 27,318

Average expenditures, all items .............................................. 21,975 24,907 24,004

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Expenditure shares do not add to 100 due to rounding.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

of their food budget for meals away

from home than did New Yorkers (45.2

percent).

In terms of food preferences, Boston households allocated larger shares

of their grocery spending for meat,

poultry, fish, eggs, and dairy products

Chart 28. Expenditure shares, United States, New York City, and Boston, 1984-85

United States

Food

15.0%

Clothing

6.0%

Housing

30.4%

Other

48.6%

New York City

Food

16.4%

Clothing

7.5%

Housing

31.1%

Other

45.0%

Boston

Food

12.5%

Clothing

5.3%

Housing

35.4%

Other

46.8%

and less for fruits and vegetables than

did New York City families. Of clothing expenditures, New York City households allocated larger shares for

women’s clothing and footwear and

smaller shares for men’s clothing than

did Boston families.

In other expenditure categories,

Boston families allocated greater expenditure shares for transportation, entertainment, and reading and education,

while New York City families allotted

more for personal care products.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
49

1996–97

1996-97

United States

By the 1990s, the U.S. population had

reached 248.7 million, an increase of 9.8

percent over the previous decade. The

median age in the country had increased 2.9 years to 32.9 (31.7 for men

and 34.1 for women). The percentage

of the population younger than 15 had

continued to decline and stood at 21.5

percent. Population dynamics had

shifted, with the percentage of Americans who were white declining to 80.3

percent and the male-to-female ratio

increasing to 95.1 men for every 100

women. (See chart 29.)

The size of the average U.S. household had declined slightly to 2.5 people.

More than a quarter of households

(28.3 percent) consisted of only one

person; 31.1 percent of households

were made up of two people; and 10.5

percent of households included five or

more people. Statistically, this household contained 0.7 children younger

than 18, 0.3 people aged 65 or older,

and 1.3 wage earners.

The age of the reference person was

47.7. In 52 percent of households, this

individual had attended college; in 40

percent, this individual had attended

high school; and in 8 percent, this individual had, at most, an eighth grade

education.

 Reference persons held the following jobs: 20.8 percent were managers

or professionals; 18.0 percent were technical, sales, or clerical workers; 11.8

percent were operators, fabricators, or

laborers; 8.6 percent were service workers; 6.0 percent were construction workers; 5.5 percent were self-employed;

Chart 29. Economic and demographic indicators, United States, 1996–97

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-73

1984-851996-97

2002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

1950

1960

1972-731984-851996-97

2002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
50

100 Years of U.S. Consumer Spending

18.4 percent were retired; and 11.0 percent were unclassified.

After the recession that ended in

March 1991, the U.S. economy had continued to expand. Unemployment averaged 5.4 percent for 1996, well below

the 7.3 percent recorded in 1984. The

male labor force participation rate had

continued to decline, to 74.9 percent in

1996, while the female rate had continued to rise, from 53.6 in 1984 to 59.3 in

1996. Women made up 45.3 percent of

the U.S. workforce.

Average family income in the country had risen to $38,983, an increase of

66.1 percent since 1984–85. The income

of the average family came from the

following sources: 78.4 percent ($30,547)

from wages and salaries; 5.5 percent

($2,141) from self-employment income;

11.4 percent ($4,434) from Social Security and from private and government

retirement; 2.0 percent ($792) from interest, dividends, and rental income; 0.5

percent ($209) from unemployment and

workers’ compensation and from veterans’ benefits; 1.0 percent ($409) from

public assistance; 0.7 percent ($268)

from gifts; and 0.5 percent ($183) from

other sources. (See table 24 for hourly

wages in selected industries.)

The average U.S. family had an after-tax income of $35,787, having allocated 8.2 percent of income for taxes:

$2,420 in Federal income taxes, $655 in

State and local income taxes, and $121

for other taxes. Of all U.S. families, 5.6

percent earned less than $5,000, 15.2

percent earned between $20,000 and

$29,999, and 13.8 percent earned at least

$70,000.

Average household expenditures, at

$34,312, had grown by somewhat less,

56.1 percent, over the same period. This

sum would have purchased $22,646

worth of goods and services in 1984

dollars. Consumer prices had moderated during the early 1990s, rising 5.4

percent in 1990 and then to an average

of only 3.0 percent during 1996.

Expenditures for food, clothing, and

housing accounted for 51.0 percent of

household spending. This share,

equivalent to that in 1984–85, marked

the end of the decline recorded during

the previous 80 years in spending on

necessities. The share for food had

decreased to 13.8 percent of spending

($4,750), and clothing’s share had declined to 5.1 percent ($1,741), while the

share for housing had increased to 32.1

percent ($11,011).

In terms of home ownership status,

64 percent of Americans owned their

home (38 percent with a mortgage and

26 percent without a mortgage), while

36 percent of households were renters.

The estimated market value of the average home was $74,835, which translated into an estimated monthly rental

value of $521.

Of total spending on housing, the

average U.S. family allotted 56.4 percent ($6,205) for shelter, 21.6 percent

($2,380) for utilities and fuel, 13.0 percent ($1,432) for furnishings and equipment, and 4.2 percent ($459) for household supplies.

As for household food expenditures, 60.6 percent ($2,878) went for

food at home, while 39.4 percent

($1,872) went for food away from home.

One percent ($309) of total spending

was allocated for alcoholic beverages.

More than a fourth of grocery spending (25.7 percent, $740) was for meat,

poultry, fish, and eggs; 16.8 percent

($483) was for fruits and vegetables;

15.6 percent ($450) was for cereals and

baked goods; and 10.9 percent ($313)

was for dairy products. (See table 25

for retail prices of selected food items.)

Of spending on clothing, 40.2 percent ($699) went for women’s and

girls’ clothes, 23.9 percent ($415) for

men’s and boys’ clothes, 4.6 percent

($80) for infants’ clothing, 17.6 percent

($307) for footwear, and 13.8 percent

($240) for other apparel products and

services.

As previously noted, 85 percent of

U.S. families owned at least one vehicle, the average family owning 1.9.

These families allotted 18.7 percent

($6,420) of their total spending for

transportation, with 8.1 percent

($2,775) for the purchase of vehicles;

3.2 percent ($1,090) for gasoline and

motor oil; and an additional 6.3 percent ($2,145) on other vehicle expenses, including financing and maintenance costs.

Additionally, the average U.S.

household allotted 5.3 percent ($1,806)

of total spending for healthcare (with

47.3 percent or $854 going for health

insurance premiums), 5.3 percent

Table 24. Hourly wages for selected industries, United States, 1996

1901 ............................................ $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $ 0.28

1918 ............................................ .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................ .58 .55 .49 .72 .71 .61 .78 .42 .62

1950 ............................................ 1.59 1.66 1.60 1.79 1.61 1.46 1.55 1.05 1.45

1960 ............................................ 2.57 2.73 2.62 2.97 2.73 2.21 2.42 1.69 2.25

1970 ............................................ 3.92 4.45 4.47 4.77 4.28 3.31 3.86 2.86 3.83

1979 ............................................ 6.69 6.16 9.26 8.18 7.85 5.06 5.28 5.36 (n/a)

1996 ............................................ 12.78 15.60 15.43 14.52 16.04 10.41 12.80 11.80 16.73

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government
51

1996–97

($1,824) for entertainment, 1.5 percent

($520) for personal care products, and

2.1 percent ($708) for reading and education. On average, families made $971

worth of charitable contributions.

New York City

During the 1990s, the population of New

York State increased 2.5 percent to 18.0

million, which was 7.3 percent of the

U.S. population. During the same period, the population of New York City

increased 3.4 percent to 7.3 million, accounting for 40.6 percent of the State’s

residents.

There were still 2.8 million households in the city, as there had been in

1980, but the average size of these

households had increased slightly, to

2.6 people. Married couples with at

least one child accounted for 44.5 percent of city households, while femaleheaded family households accounted

for 18.0 percent, and one-person households made up 32.9 percent. Nearly

one-sixth of families (16.3 percent) lived

below the poverty line.

Demographically, the median age of

the city’s residents had increased a full

year, to 33.7. Roughly three-quarters

(76.9 percent) of the population was 18

or older, 7.0 percent was younger than

5, and 13.1 percent was at least age 65.

The male-to-female ratio was 88.5 men

for every 100 women.

The percentage of city residents

who were white had continued to decline and was 52.3. Blacks represented

28.8 percent of the population, and

Asians, 7.0 percent. Hispanics, who can

be of any race, made up 24.4 percent.

The foreign born made up 28.4 percent

of residents, and 41.0 percent of the

population spoke a language other than

English at home.

During 1990, there were 127,000 live

births in the city—an increase of 23.3

percent from 1980—and 78,000 deaths.

In terms of education, 68.3 percent

of New Yorkers had 12 or more years of

schooling, while 23.0 percent had

earned at least a bachelor’s degree—

both percentages higher than in 1980.

There were 3 million housing units

in the city, of which 14.7 percent were

single-unit structures, and 62.2 percent

had 5 or more units. Of city households, half owned their home (32 percent having a mortgage and 18 percent

living mortgage free), and half rented.

The estimated market value of an

owned home in the city was $101,672;

the estimated monthly rental value of

this home was $664. Condominiums

constituted 7.2 percent of all housing

units.

The economic sector with the greatest share of jobs (17.2 percent) was retail and wholesale trade. Manufacturing represented only 11.4 percent of the

city’s job base. Jobs in finance, insurance, and real estate accounted for 12.3

percent of employment; jobs in health

services, 10.7 percent; and jobs in public administration, 4.9 percent.

Women constituted 47.3 percent of

the New York City workforce. (See chart

30.) The city’s unemployment rate was

8.6 percent, but, in a reversal from 1984-

85, the unemployment rate among

women was higher, at 9.0 percent.

When commuting to work, 24.0 percent

of city residents drove alone, 8.5 percent were in a carpool, and 53.4 percent used public transportation. A

small percentage of New Yorkers (2.4)

worked at home.

Average household income had increased 56.4 percent to $45,877, 17.7

percent higher than the average U.S.

family’s income. There were many components of the average family’s income:

80.8 percent ($37,068) came from wages

and salaries; 5.2 percent ($2,396) came

from self-employment; 9.7 percent

($4,458) came from Social Security and

from private and government retirement; 1.6 percent ($713) came from interest, dividends, and rental income; 0.4

percent ($186) came from unemployment and workers’ compensation and

from veterans’ benefits; 1.4 percent

($639) came from public assistance; 0.4

percent ($201) came from gifts; and 0.4

percent ($199) came from other sources.

The average New York City household had an after-tax income of $42,621,

having allotted 7.1 percent of income

for taxes: $2,410 for Federal income

taxes, $673 for State and local income

taxes, and $172 for other taxes.

Average household expenses had

risen 54.5 percent over the decade to

$38,470, 12.1 percent greater than those

of the average U.S. family. This sum

would have purchased $24,236 worth

of goods and services in 1984 dollars.

Expenditures for food, clothing, and

housing accounted for 58.1 percent

($22,372) of family spending, an increase from 1984–85. The shares of

food (15.4 percent, $5,927) and clothTable 25. Retail prices of selected foods in U.S. cities, 1996

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

1950 ................................................................. .49 .94 .75 .64 .73 .60 .41

1960 ................................................................. .55 1.06 .86 .66 .75 .57 .52

1970 ................................................................. .59 1.30 1.16 .95 .87 .61 .66

1984 ................................................................. 1.07 2.91 2.38 1.86 2.05 1.00 1.13

1996 ................................................................. 1.44 3.12 3.41 2.47 2.11 1.11 1.56

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year
52

100 Years of U.S. Consumer Spending

ing (5.7 percent, $2,211) had decreased,

while the share for housing (37.0 percent, $14,234) had increased substantially, driving up the overall proportion

of family spending on these three essential items.

Of overall spending on housing, the

average city household allotted 65.1

percent ($9,267) for shelter, another

marked shift from the previous decade;

17.4 percent ($2,470) for utilities and

fuel; 10.4 percent ($1,480) for furniture

and equipment; and 3.2 percent ($455)

for supplies.

Food at home accounted for 57.5

percent ($3,410) of food expenditures,

an increase from the previous decade.

Of this spending, city residents allotted 28.7 percent ($977) for meat, poultry, fish, and eggs; 19.0 percent ($648)

for fruits and vegetables; 16.5 percent

($563) for cereals and baked goods; and

10.8 percent ($369) for dairy products.

Food away from home accounted for

42.5 percent ($2,517) of total food

spending, while spending on alcoholic

beverages amounted to 1.2 percent

($443) of total expenditures.

Of spending for clothing, 38.4 percent ($848) went for women’s and girls’

clothes, continuing the decline recorded in the previous decade; 23.4

percent ($518) went for men’s and

boys’ clothing; 4.3 percent ($94) for

infants’ clothes; 19.0 percent ($421) for

footwear; and 14.9 percent ($330) for

other apparel products and services.

As previously noted, the average

New York City family owned 1.2 vehicles, compared with 1.9 for the average U.S. household. City families allotted 13.5 percent of total spending

($5,202) for transportation expenses,

with 3.2 percent ($1,225) allocated for

the purchase of vehicles; 2.2 percent

($847) for gasoline and motor oil; and

5.9 percent ($2,269) for other vehicle

expenses, including financing and

maintenance costs.

Additionally, New York City households allocated 4.5 percent ($1,736) of

total spending for healthcare (with 50.5

percent or $876 of this spending allotted for health insurance), 4.7 percent

($1,791) for entertainment, 1.6 percent

($600) for personal care products, and

2.8 percent ($1,066) for reading and

education. New York City households

gave $923 in charitable contributions.

Boston

By 1990, the population of Massachusetts had surpassed 6 million, gaining

4.9 percent during the preceding decade. Within the Commonwealth’s borders resided 2.4 percent of the U.S.

population. During the same timeframe,

the population of Boston had increased

2.0 percent to 574,000—9.5 percent of

Massachusetts residents.

Demographically, the median age of

Chart 30. Economic and demographic indicators, New York City, 1996–97

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-19

1934-36

19501960

1972-73

1984-851996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

1950

1960

1972-73

1984-851996-972002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Average family size

2

3

4

5

1901

1918-19

1934-36

19501960

1972-731984-85

1996-97

2002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
53

1996–97

Boston residents was 30.3 years,

younger than that recorded for New York

City residents but a 1.4-year increase

from 1980. Eight out of ten Bostonians

were at least 18 years of age, with 6.4

percent younger than 5 and 11.4 percent

at least 65. The male-to-female ratio was

92.5 men for every 100 women.

In Boston, the decline in the percentage of the population that was

white had continued and stood at 62.8.

Blacks represented 25.6 percent;

Asians, 5.3 percent; and Hispanics,

who could be of any race, 10.8 percent.

Among city residents, 20.0 percent were

foreign born, and 25.6 percent spoke a

language other than English at home.

There were 228,000 households in

Boston, with an average size of 2.4

people—smaller than that reported for

either New York City or the country as

a whole. Married couples with at least

one child constituted 42.3 percent of

these households, female-headed families accounted for 16.5 percent of

households, and one-person households made up 35.5 percent of the total. Roughly 1 in 7 families (15.0 percent) lived below the poverty line.

During 1990, there were 9,700 live

births in the city—an increase of 26.0

percent from 1980—and 5,700 deaths.

In terms of education, 75.7 percent

of Bostonians had at least a high school

education, while 30.0 percent had

earned at least an undergraduate degree. Both proportions were higher

than those recorded in New York City.

There were 251,000 housing units

in the city, of which 15.8 percent were

single-unit structures, and 43.0 percent

contained 5 or more units. Of all city

households, 61 percent owned their

home (40 percent having a mortgage

and 20 percent living mortgage free),

while 39 percent were renters. The estimated market value of an owned home

was $104,541, while the estimated

monthly rental value of the average

home was $727. Condominiums represented 11.6 percent of all housing units.

As in New York City, the manufacturing sector had continued to contract

and represented only 9.9 percent of

Boston’s job inventory. Of jobs in other

sectors, 16.6 percent were in retail and

wholesale trade; 13.3 percent were in

health services; 10.8 percent were in

finance, insurance, and real estate; and

5.6 percent were in public administration.

Women represented 48.5 percent of

the workforce, and their unemployment

rate at 8.3 percent was equivalent to

the overall city unemployment rate of

8.4 percent. (See chart 31.) In commuting to work, 40.1 percent of residents

drove by themselves, 10.5 percent were

members of carpools, and 31.5 percent

used public transportation. A small

percentage of Bostonians (2.2) worked

at home.

Average family income had increased 88.9 percent from a decade earlier, to $51,616. This amount was 32.4

percent higher than average U.S. family income. The components of family

income were the following: 82.7 percent ($42,684) came from wages and

salaries; 6.1 percent ($3,130) came from

self-employment income; 7.3 percent

($3,780) came from Social Security and

from private and government retirement; 1.8 percent ($923) came from interest, dividends, and rental income;

0.4 percent ($200) came from unemployment and workers’ compensation

and from veterans’ benefits; 0.5 percent ($245) came from public assistance; 1.0 percent ($509) came from

gifts; and 0.3 percent ($145) came from

other sources.

The average Boston household had

an after-tax income of $48,492, having

allotted 6.1 percent of income for taxes:

$2,237 for Federal income taxes, $855

for State and local income taxes, and

$32 for other taxes.

Average family expenses, $37,069,

had increased 54.4 percent over the

preceding decade and were 8.0 percent

greater than those of the average U.S.

household. This amount would have

purchased $23,724 worth of goods and

services in 1984 dollars.

Expenditures for food, clothing, and

housing accounted for 53.6 percent

($19,869) of spending, a proportion

equal to that allocated in 1984–85. The

share for food (11.6 percent, $4,297)

had decreased over the decade, while

the share for clothing (5.3 percent,

$1,956) had remained level, and the

share for housing (36.7 percent,

$13,616) had increased.

For housing, the average Boston

family devoted 61.5 percent ($8,377) of

expenditures to shelter, 18.5 percent

($2,514) to utilities and fuel, 7.3 percent ($999) to household operations

and supplies, and 12.7 percent ($1,727)

to household furnishings and equipment.

Of total spending for food, food at

home accounted for 54.1 percent

($2,325), an increase from the previous

decade. Boston families allocated 25.5

percent ($594) of grocery purchases for

meat, poultry, fish, and eggs; 18.7 percent ($435) for fruits and vegetables;

17.1 percent ($397) for cereals and

baked goods; and 12.1 percent ($281)

for dairy products. Food away from

home accounted for 45.9 percent

($1,972) of total food spending, a decrease from 1984–85, while 1.2 percent

($427) of total expenditures went for

alcoholic beverages.

Because of falling apparel prices,

expenditure shares on clothing in both

New York City and Boston had declined, although overall spending on

clothing had increased from 1984 levels. Of clothing spending, 40.5 percent ($793) went for women’s and girls’

clothes, 21.2 percent ($414) went for

men’s and boys’ clothing, 5.8 percent

($114) for infants’ clothes, 10.6 percent

($207) for footwear, and 21.9 percent

($428) went for other apparel products

and services.

The average Boston household

owned 1.8 vehicles, more than the

average for New York City families,

but less than the average for all U.S.

households. Families allocated 18.1

percent ($6,698) of their total spending for transportation, with 7.2 percent ($2,656) going to the purchase

of vehicles; 2.8 percent ($1,056) to

gasoline and motor oil; and 6.3 percent ($2,334) to other vehicle expenses,
54

100 Years of U.S. Consumer Spending

including financing and maintenance

costs.

Additionally, Boston households

allotted 4.7 percent ($1,753) of total

spending for healthcare (with 57.2 percent or $1,002 of this spending allotted for health insurance), 5.4 percent

($1,995) for entertainment, 1.2 percent

($461) for personal care products, and

2.3 percent ($862) for reading and education. Boston households gave $581

in charitable contributions.

Perspective

By the mid-1990s, the U.S. economy

was in an expansionary cycle, fueled

by the dot-com stock market bubble.

During the previous decade, household incomes had increased by 66 percent nationwide, but by only 56 percent in New York City and by 89 percent

in Boston. Family incomes in Boston

were 12.5 percent higher than in New

York City, a shift from previous decades, but New Yorkers spent 4 percent more than did Boston families.

On average, U.S. families spent 96

percent of their after-tax incomes, and

New York City families spent 90 percent, while Boston families spent only

76 percent.

Compared with incomes, prices

throughout the country had exhibited

a more moderate increase. For example,

during the previous decade, the cost

of 5 pounds of flour had increased 35

percent and the cost of a dozen eggs

had risen 11 percent, while the cost of

butter had decreased 3 percent.

Families in the country as a whole

and in Boston found that the share

they spent on necessities equaled what

they had spent in the previous decade;

New York City families, however, were

able to allocate slightly less (3 percent).

Distinct shifts took place in the composition of spending for necessities.

Chart 31. Economic and demographic indicators, Boston, 1996–97

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

19501960

1972-73

1984-851996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-731984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Average family size

2

3

4

5

6

1901

1918-191934-36

19501960

1972-73

1984-85

1996-972002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States

New York City families allocated a

greater share of their spending for food

(15 percent) than did Boston families

(12 percent). (See chart 32 and table

26.) New Yorkers also spent more for

food at home, while Bostonians had

higher expenditure shares for restaurant meals.

Of grocery store purchases, New

York City households allocated greater

shares for meat, poultry, fish, and eggs

than did Boston families, but smaller

shares for dairy products and for cereals and baked goods.

Although households in New York

City and in Boston allocated equivalent shares of their expenditures for

housing, New Yorkers allotted a greater

share of their housing budget for shelter. More New York City families rented

than did their Boston counterparts.

Expenditure shares for apparel were

similar between New York City and

Boston. New Yorkers, however, allot-
55

1996–97

Chart 32. Expenditure shares, United States, New York City, and Boston, 1996-97

United States

Food

13.8%

Clothing

5.1%

Housing

32.1%

Other

49.0%

New York City

Food

15.4%

Clothing

5.7%

Housing

37.0%

Other

41.9%

Boston

Food

11.6%

Clothing

5.3%

Housing

36.7%

Other

46.4%

Table 26. Expenditures and expenditure shares, United States, New York City, and Boston, 1996-97

Food .......................................................................................... $ 4,750 13.8 $ 5,927 15.4 $ 4,297 11.6

Alcoholic beverages ................................................................. 309 .9 443 1.2 427 1.2

Housing ..................................................................................... 11,011 32.1 14,234 37.0 13,616 36.7

Apparel and services ............................................................... 1,741 5.1 2,211 5.7 1,956 5.3

Transportation ........................................................................... 6,420 18.7 5,202 13.5 6,698 18.1

Healthcare ................................................................................ 1,806 5.3 1,736 4.5 1,753 4.7

Entertainment ........................................................................... 1,824 5.3 1,791 4.7 1,995 5.4

Personal care products and services ...................................... 520 1.5 600 1.6 461 1.2

Reading and education ............................................................. 708 2.1 1,066 2.8 862 2.3

Tobacco ..................................................................................... 259 .8 224 .6 259 .7

Miscellaneous ........................................................................... 851 2.5 822 2.1 719 1.9

Cash contributions ................................................................... 971 2.8 923 2.4 581 1.6

Personal insurance and pensions ............................................ 3,142 9.2 3,291 8.6 3,444 9.3

Average income per family ..................................................... 38,983 45,877 51,616

Average expenditures, all items .............................................. 34,312 38,470 37,069

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Expenditure shares do not add to 100 due to rounding.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

ted a smaller share of their clothing

spending for women’s clothing and

more for men’s clothing than did

Bostonians.

Again, increases in standards of living permitted families throughout the

country and in New York City and Boston to spend more than in previous

decades for entertainment, recreation,

education, reading, and personal care.

Besides the economic changes

noted above, demographic changes

were underway. The country was aging, with the median age in the United

States having increased to 32.9, in New

York City to 33.7, and in Boston to 30.3

years. Women represented 45 percent of the U.S. workforce, and average family size continued to decline,

as did the percentage of whites in

the population.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
57

2002–03

2002-03

United States

By the 21st century, the U.S. population had exceeded 281 million, a gain of

13.2 percent from the previous decade.

Not only had the population grown,

but it also had aged: the median age in

the country had increased to 35.3 years

(36.5 for women and 34.0 for men)—

the highest in 100 years.

The percentage of the population

younger than 15 had held steady at 21.4.

The percentage of Americans who were

white was 75.1, a notable drop from the

previous decade. (See chart 33.) The

male-to-female ratio had increased to

96.3 men for every 100 women.

The size of the average U.S. household had remained 2.5 people, with 29.5

percent of households consisting of

only one person, 26.2 percent made up

of two people, and 9.9 percent consisting of five or more people. Statistically,

the average household contained 0.6

children under 18 and 0.3 people aged

65 or older. The average number of earners was 1.3.

The age of the reference person was

48.2. In 57 percent of households, this

individual had attended college; in 37

percent, he or she had attended high

school; and in 6 percent, the person

had at most an eighth grade education.

The highest concentration of reference

persons (24.3 percent) was in managerial or professional occupations. After

that came technical, sales, or clerical

workers (19.2 percent); operators, fabricators, or laborers (9.8 percent); service workers (9.3 percent); construction workers (4.6 percent); and the

self-employed (4.4 percent). The share

Chart 33. Economic and demographic indicators, United States, 2002–03

Average household income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

1950

1960

1972-731984-85

1996-97

2002-03

Expenditure share for non-necessities

20

30

40

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-972002-03

Percent of women in workforce

15

20

25

30

35

40

45

50

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Average family size

2

3

4

5

1901

1918-19

1934-36

19501960

1972-73

1984-851996-972002-03

Percent of whites in population

75

80

85

90

1901

1918-191934-36

19501960

1972-73

1984-85

1996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
58

100 Years of U.S. Consumer Spending

of reference persons who were retired

was 17.5 percent, and those who were

not noted made up 11.0 percent.

Following 10 years of expansion,

from March 1991 to March 2001, the

country had slipped into an 8-month

downturn ending in November 2001.

The terrorist attacks on September 11

of that year aggravated the recession,

further slowing both the national and

regional economies.

Unemployment had risen from 4.0

percent in 2000 to 4.7 percent in 2001,

and to 5.8 percent in 2002. Female labor force participation, after peaking in

1991 at 60 percent, had drifted downward to 59.6 percent in 2002. Male labor force participation had declined

slightly from 74.8 percent in 2000 to 74.1

percent in 2002. Women made up 46.5

percent of the U.S. workforce. Wages

also had increased, especially in services. (See table 27.)

Average family income in the country was $50,302, an increase of 29.0 percent from the mid-1990s. Sources of

family income were varied. For the average family, 80.6 percent ($40,550) of

income came from wages and salaries;

4.3 percent ($2,186) came from self-employment income; 10.8 percent ($5,422)

came from Social Security and from private and government retirement; 2.0

percent ($1,013) came from interest,

dividends, and rental income; 0.5 percent ($252) came from unemployment

and workers’ compensation and from

veterans’ benefits; 0.7 percent ($333)

came from public assistance; 0.7 percent ($377) came from gifts; while 0.3

percent ($169) came from other sources.

The average U.S. family had an after-tax income of $47,787, having allocated 5.0 percent of income for taxes:

$1,843 for Federal income taxes, $504

for State and local income taxes, and

$168 for other taxes. Of all U.S. families, 3.7 percent earned less than $5,000,

10.9 percent earned between $20,000

and $29,999, and 17.1 percent earned

$70,000 or more.

Average household expenses,

$40,748, had grown by 18.8 percent from

the mid-1990s. This amount would have

purchased $35,827 worth of goods and

services in 1996 dollars. Consumer prices,

after averaging a gain of 3.4 percent in

2000, had increased at a rate of 2.8 percent in 2001 and 1.6 percent in 2002.

Expenditures for food, clothing, and

housing accounted for 50.1 percent of

household spending, a slightly lower

share than that recorded during the mid1990s. The share for food had declined

from 13.8 percent in 1996-97 to 13.1 percent ($5,357); the share for clothing had

decreased notably, to 4.2 percent

($1,694); and the share for housing had

increased slightly, to 32.8 percent

($13,359).

Of total spending on housing, the

average U.S. family allotted 58.8 percent ($7,859) for shelter, 20.6 percent

($2,749) for fuels and utilities, 9.3 percent ($1,243) for household operations

and supplies, and 11.2 percent for furnishings and equipment. Two-thirds of

U.S. households (67 percent) owned

their home (41 percent with a mortgage

and 26 percent without a mortgage),

while 33 percent rented. The estimated

market value of the average home was

$114,522, and its estimated monthly

rental value was $735.

Of spending on food, 58.1 percent

($3,114) of the average household’s expenditures went for food at home, while

41.9 percent ($2,243) went for food

away from home. Less than 1 percent

of total spending was allocated for alcoholic beverages. Grocery spending

was divided as follows: 26.0 percent

($812) was for meat, poultry, fish, and

eggs; 17.5 percent ($544) was for fruits

and vegetables; 14.3 percent ($446)

was for cereals and baked goods; and

10.5 percent ($328) was for dairy products. Table 28 provides retail prices for

selected food items.

Of family spending on clothing, 39.0

percent ($669) was for women’s and

girls’ clothing, 23.0 percent ($390) was

for men’s and boys’ apparel, 4.8 percent ($82) was for infants’ clothing, 17.9

percent ($303) was for footwear, and

14.7 percent ($249) was for other apparel

products and services.

To get around, 88 percent of U.S.

families owned at least one motor vehicle, with the average family owning

2.0. These households allotted 19.1 percent ($7,770) of their total spending for

transportation expenses, with 9.1 percent ($3,699) for the purchase of vehicles; 3.2 percent ($1,285) for gasoline

and motor oil; and 5.9 percent ($2,400)

for other vehicle expenses, including

Table 27. Hourly wages for selected industries, United States, 2002

1901 ............................................. $ 0.23 $ 0.26 $ 0.28 $ 0.24 $ 0.24 $ 0.25 $ 0.50 $ 0.17 $ 0.28

1918 ............................................. .53 .67 .57 .61 .42 .45 .69 .31 .49

1935 ............................................. .58 .55 .49 .72 .71 .61 .78 .42 .62

1950 ............................................. 1.59 1.66 1.60 1.79 1.61 1.46 1.55 1.05 1.45

1960 ............................................. 2.57 2.73 2.62 2.97 2.73 2.21 2.42 1.69 2.25

1970 ............................................. 3.92 4.45 4.47 4.77 4.28 3.31 3.86 2.86 3.83

1979 ............................................. 6.69 6.16 9.26 8.18 7.85 5.06 5.28 5.36 (n/a)

1996 ............................................. 12.78 15.60 15.43 14.52 16.04 10.41 12.80 11.80 16.73

2002 ............................................. 15.30 17.77 18.87 17.29 (n/a) 13.13 16.35 15.24 18.80

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey and Quarterly Census of Employment and Wages

Manufacturing

Mining Construction

Communications

and public

utilities

Finance,

insurance,

and real

estate

Year Transportation

Trade Services Government
59

2002–03

financing and maintenance costs.

Additionally, the average U.S.

household allotted 5.9 percent ($2,384)

of total spending for healthcare, with

50.8 percent ($1,210) going for health

insurance premiums; 5.1 percent

($2,069) for entertainment; 1.3 percent

($526) for personal care products; and

2.2 percent ($901) for reading and

education. Families donated $1,324

in charitable contributions.

New York City

At the beginning of this century, the

population of New York State had

reached 19.0 million, an increase of 5.5

percent over the decade. New York residents made up 6.7 percent of the U.S.

population. Meanwhile, New York

City’s population had increased 9.4

percent, surpassing 8.0 million and accounting for 42.2 percent of the State’s

total.

There were 3.0 million households

in New York City, with an average size

of 2.6 people, slightly larger than the

average for the United States. (See

chart 34.) Married couples with at least

one child accounted for 47.4 percent of

Table 28. Retail prices of selected foods in U.S. cities, 2003

1901 ................................................................. $ 0.13 $ 0.14 $ 0.13 $ 0.16 $ 0.27 $ 0.22 $ 0.14

1918 ................................................................. .34 .37 .39 .53 .58 .57 .28

1934 ................................................................. .25 .28 .26 .29 .32 .33 .22

1950 ................................................................. .49 .94 .75 .64 .73 .60 .41

1960 ................................................................. .55 1.06 .86 .66 .75 .57 .52

1970 ................................................................. .59 1.30 1.16 .95 .87 .61 .66

1984 ................................................................. 1.07 2.91 2.38 1.86 2.11 1.00 1.13

1996 ................................................................. 1.44 3.12 3.41 2.47 2.05 1.11 1.56

2003 ................................................................. 1.56 3.84 3.13 3.20 2.81 1.24 n/a

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

Flour

5 lb.

Round steak

lb.

Pork chops

lb.

Bacon

lb.

Butter

lb.

Eggs

dozen

Milk

1/2 gallon Year

Chart 34. Economic and demographic indicators, New York City, 2002–03

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901

1918-19

1934-36

1950

1960

1972-731984-85

1996-97

2002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

1901

1918-191934-36

19501960

1972-731984-85

1996-972002-03

Percent of women in workforce

25

30

35

40

45

50

55

1901

1918-191934-36

19501960

1972-731984-851996-972002-03

Average family size

2

3

4

5

1901

1918-191934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Percent of whites in population

40

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-731984-851996-97

2002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
60

100 Years of U.S. Consumer Spending

these households, female-headed families made up 19.1 percent of households, and one-person households

constituted 31.9 percent of the total.

Slightly less than one-fifth (18.5 percent) of households lived below the

poverty level.

Demographically, the city was aging: the median age had risen slightly

to 34.2. Three-quarters of the population was 18 or older, with 6.8 percent

younger than 5 and 11.7 percent aged

65 or older. The male-to-female ratio

was 90.0 men for every 100 women.

The percentage of residents who

were white had dwindled to less than

half (44.7 percent), while blacks made

up 26.6 percent of the population;

Asians, 9.8 percent; and Hispanics,

who may be of any race, 27.0 percent.

Of all city residents, 35.9 percent were

foreign born, 52.6 percent of them from

Latin America. In 47.6 percent of city

households, a language other than

English was spoken.

During 2000, there were 121,000 live

births in the city—a decline of 4.7 percent from 1990—and 60,000 deaths.

In terms of educational attainment,

72.3 of all New Yorkers had graduated

from high school, and 27.4 percent had

earned at least a bachelor’s degree—

both higher percentages than in 1990.

In a sign that the population had

become slightly less mobile than in the

1970s, 61.0 percent of residents had

lived in the same dwelling for the last 5

years.

Occupationally, 36.8 percent of New

Yorkers held managerial or professional

positions, 27.4 percent worked in sales

or office positions, 18.6 percent held

service positions, 10.9 percent were

employed in production or transportation, and 6.4 percent worked in construction or maintenance.

As for the city’s job base, 23.4 percent of jobs were in education,

healthcare, or social services; 12.1 percent in retail or wholesale trade; 11.9

percent in professional, scientific, and

managerial fields; 11.4 percent in finance, insurance, and real estate; 8.3

percent in the arts, entertainment, recreation, food, and accommodations

sectors; 6.6 percent in manufacturing;

6.5 percent in transportation, warehousing, or utilities; 5.3 percent in information; 4.5 percent in public administration; and 4.3 percent in construction.

For the first time, women represented more than half of the New York

City workforce (51.9 percent). The overall unemployment rate was 5.5 percent.

In commuting to work, 24.9 percent of

city residents drove alone, 8.0 percent

were in carpools, and 52.8 percent used

public transportation.

Average household income had

risen 45.3 percent from 1996–97 to

$66,643, 32.5 percent higher than average U.S. family income. Of family income, 86.6 percent ($57,741) came from

wages and salaries; 3.4 percent ($2,248)

came from self-employment income; 6.8

percent ($4,503) came from Social Security and from private and government

retirement; 1.7 percent ($1,122) came

from interest, dividends, and rental income; 0.4 percent ($262) came from

unemployment and workers’ compensation and from veterans’ benefits; 0.6

percent ($406) came from public assistance; 0.4 percent ($262) came from

gifts; and 0.1 percent ($99) came from

other sources.

The average New York City family

had an after-tax income of $63,884, having allotted 4.1 percent of income for

taxes: $1,969 for Federal income taxes,

$641 for State and local income taxes,

and $148 for other taxes.

Average household expenses,

$50,319, had risen 30.8 percent during

the same period and were 23.5 percent

greater than those of the average U.S.

family. This sum would have purchased $42,267 worth of goods and

services in 1996 dollars.

Expenditures for food, clothing, and

housing accounted for 56.7 percent

($28,562) of family spending, a decrease from the 1996–97 level. The

shares for food (13.9 percent, $7,005)

and clothing (5.2 percent, $2,638) had

decreased, while the share for housing

had risen slightly (37.6 percent,

$18,919).

There were 3.2 million housing units

in the city, of which 16.7 percent were

single-unit structures, and 60.8 percent

contained 5 or more units. The size of

the average unit was 3.8 rooms. Of

total households, 55 percent were

homeowners (35 percent having a mortgage and 21 percent living mortgage

free), and 45 percent were renters. The

estimated market value of a home was

$178,654, which translated into a

monthly rental value of $1,061.

Of total spending on housing, the

average city household allotted 65.6

percent ($12,402) for shelter, 16.1 percent ($3,055) for utilities and fuel, 9.5

percent ($1,796) for furniture and equipment, and 5.9 percent ($1,113) for

household operations.

Food at home accounted for 54.4

percent ($3,808) of food expenditures.

Of this spending, New Yorkers allotted

28.3 percent ($1,079) for meat, poultry,

fish, and eggs; 19.2 percent ($732) for

fruits and vegetables; 15.0 percent

($570) for cereals and bakery products;

and 10.4 percent ($396) for dairy products. Food away from home accounted

for 45.6 percent ($3,197) of total food

spending. Alcoholic beverages claimed

0.9 percent ($469) of total spending.

Of spending for clothing, 38.2 percent ($1,008) went for women’s and

girls’ clothes, 22.3 percent ($587) for

men’s and boys’ clothes, 3.8 percent

($101) for infants’ apparel, 19.0 percent

($502) for footwear, and 16.6 percent

($439) for other apparel products and

services.

The average New York City

household owned 1.4 vehicles, compared with 2.0 for the average U.S.

family. City families allotted 15.4 percent ($7,729) of their total spending

for transportation expenses, with 5.8

percent ($2,928) for the purchase of

vehicles; 2.2 percent ($1,101) for gasoline and motor oil; and 5.3 percent

($2,658) for other vehicle expenses, including financing and maintenance

costs.

Additionally, New York City households allotted 4.4 percent ($2,235) of

total spending for healthcare (with 55.8
61

2002–03

percent or $1,208 of this amount allotted for health insurance), 4.7 percent

($2,350) for entertainment, 1.3 percent

($643) for personal care products, and

2.8 percent ($1,426) for reading and

education. New Yorkers gave $949 in

charitable contributions.

Boston

By 2000, the population of Massachusetts had reached 6.3 million—a gain

of 5.5 percent over the decade—and

accounted for 2.3 percent of the U.S.

population. During the same period,

the population of Boston had risen to

590,000, a gain of 2.6 percent, and represented 9.3 percent of the Commonwealth’s residents.

In the city there were 240,000 households, with an average size of 2.5

people, slightly smaller than the average New York City household. (See

chart 35.) Married couples with at least

one child accounted for just 42.9 percent of Boston households, while female-headed families made up 16.4 percent and one-person households were

37.1 percent of the total. Roughly 1 in 7

families (15.3 percent) lived below the

poverty level.

Demographically, Boston’s population was aging. The median age had

increased to 31.1 but still was younger

than that recorded in New York City.

Four out of five Bostonians were at

least 18 years of age, 5.4 percent were

younger than 5, and 10.4 percent were

65 or older. The male-to-female ratio

was 92.8 men for every 100 women.

Whites represented 54.5 percent of

the city’s residents, while blacks accounted for 25.3 percent and Asians

7.5 percent. Hispanics, who may be of

any race, made up 14.4 percent of the

population. One-fourth (25.8 percent)

of the residents were foreign born, and

in 33.4 percent of households, a language other than English was spoken.

During 2000, there were 8,100 live

births in the city—a decline of 16.5 percent from 1990—and 4,500 deaths.

In terms of education, 78.9 percent

of Bostonians had graduated from high

school, and 35.6 percent had earned at

least a bachelor’s degree.

Nearly half (47.8 percent) of residents had lived in the same dwelling

for the past 5 years. This percentage

was lower than it had been in the early

1970s (49.9 percent).

Occupationally, 43.3 percent of

Bostonians worked in management or

in the professions, 25.6 percent in sales

or office positions, 17.8 percent in service jobs, 8.3 percent in production or

transportation, and 4.9 percent in construction or maintenance.

Boston workers were employed in

numerous sectors, with the highest

concentration (26.8 percent) in education, healthcare, and social services.

Chart 35. Economic and demographic indicators, Boston, 2002–03

Average household income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

Average household expenditures

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1901

1918-191934-36

1950

1960

1972-731984-85

1996-97

2002-03

Expenditure share for non-necessities

15

20

25

30

35

40

45

50

1901

1918-191934-36

1950

1960

1972-73

1984-851996-97

2002-03

Percent of women in workforce

25

30

35

40

45

50

1901

1918-19

1934-36

1950

1960

1972-73

1984-85

1996-97

2002-03

Average family size

2

3

4

5

6

1901

1918-19

1934-36

19501960

1972-731984-851996-972002-03

Percent of whites in population

50

60

70

80

90

100

1901

1918-191934-36

19501960

1972-73

1984-851996-972002-03

SOURCES: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, and U.S. Census Bureau, Statistical Abstract of the United States
62

100 Years of U.S. Consumer Spending

After that, 14.9 percent were in professional, scientific, or management fields;

10.4 percent were in finance, insurance,

or real estate; 10.4 percent were in retail or wholesale trade; 9.2 percent were

in the arts, entertainment, recreation,

food service, or accommodations sectors; 6.1 percent were in manufacturing; 5.1 percent were in public administration; 4.4 percent were in information;

4.1 percent were in transportation,

warehousing, or utilities; and 3.8 percent were in construction.

Women represented 49.9 percent of

Boston’s workforce. The unemployment rate in the city was 4.6 percent. In

commuting to work, 41.5 percent of residents drove alone, while 9.2 percent

participated in carpools, and 32.3 percent used public transportation.

Average family income in Boston

was $59,648, 18.6 percent higher than

the income of the average U.S. family

and 15.6 percent more than that reported for Bostonians in the mid-1990s.

The portion of the average family income that came from wages and salaries was up to 86.5 percent ($51,614)

from 82.7 percent ($37,068) in 1996–97.

As for the other components, 2.8 percent ($1,647) came from self-employment income; 6.6 percent ($3,957) came

from Social Security and from private

and government insurance; 2.1 percent

($1,227) came from interest, dividends,

and rental income; 0.4 percent ($239)

came from unemployment and workers’

compensation and from veterans’ benefits; and 0.7 percent came from public

assistance.

The average Boston household had

an after-tax income of $57,252, having

allotted 4.0 percent of income for taxes:

$1,726 for Federal income taxes, $587

for State and local income taxes, and

$83 for other taxes.

Average household expenses,

$41,814, had increased 12.8 percent

from the mid-1990s and were 2.6 percent more than the expenditures of the

average U.S. household. This amount

would have purchased $33,451 worth

of goods and services in 1996 dollars.

Expenditures for food, clothing, and

housing accounted for 53.8 percent

($22,448) of spending, an increase from

1996. The share for food (13.5 percent,

$5,627) had increased, the share for

clothing (3.9 percent, $1,610) had decreased, and the share for housing

(36.4 percent, $15,211) had remained

constant.

There were 252,000 housing units

in the city, of which 16.6 percent were

single-unit structures, and 42.6 percent

contained 5 or more units. The average size of these units was 4.2 rooms.

Among Boston households, 59 percent

were homeowners (37 percent having

a mortgage and 22 percent living mortgage free), while 41 percent were renters. The estimated market value of a

home was $183,467, which translated

into a monthly rental value of $1,051.

Of total spending on housing, the

average Boston family allotted 66.7

percent ($10,145) for shelter, 17.6 percent ($2,676) for utilities and fuels, 8.0

percent ($1,212) for furniture and equipment, and 7.8 percent ($1,179) for

household operations and supplies.

Food at home accounted for 58.7

percent ($3,303) of food expenditures,

an increase from the mid-1990s. Of this

spending, Boston families allocated

27.2 percent ($897) for meat, poultry,

fish, and eggs; 17.0 percent ($557) for

fruits and vegetables; 15.0 percent

($495) for cereals and bakery products;

and 10.8 percent ($356) for dairy products. Food away from home accounted

for 41.3 percent ($2,324) of total food

spending, a decrease from 1996, while

1.0 percent ($389) of total expenditures

went for alcoholic beverages.

Women’s and girls’ clothing accounted for the largest share of spending on clothing, 38.7 percent ($623).

Beyond that, 20.4 percent ($329) went

for men’s and boys’ clothing, 5.9 percent ($95) for infants’ clothes, 20.6 percent ($332) for footwear, and 14.5 percent ($233) for other apparel products

and services.

The average Boston household

owned 1.6 vehicles, more than the average for New York City, but less than

the average for the United States. Households allocated 17.2 percent ($7,175) of

their spending on transportation, the

bulk of it distributed as follows: 8.4 percent ($3,518) on the purchase of vehicles; 2.8 percent ($1,159) on gasoline

and motor oil; and 5.0 percent ($2,074)

for other vehicle expenses, including

financing and maintenance costs.

Additionally, Boston households

allotted 4.8 percent ($2,007) of total

spending for healthcare (with 63.7 percent or $1,278 of this spending allotted

for health insurance), 4.8 percent

($2,019) for entertainment, 1.2 percent

($496) for personal care products, and

3.1 percent ($1,281) for reading and

education. Boston households gave

$1,016 in charitable contributions. (See

chart 36 and table 29.)

Perspective

As the 21st century began, the U.S.

economy, which had been expanding

for a decade, stalled and entered a recession that was aggravated by the

tragedy of 9/11. Nonetheless, household incomes continued to increase,

having risen over the decade by 29

percent nationwide, 45 percent in New

York City, and 16 percent in Boston.

By 2002–03, average family income in

New York City exceeded that in Boston

by 12 percent.

The average U.S. family spent 85

percent of its after-tax income, while

New York City families spent 79 percent, and Boston families spent 73 percent. Total expenditures of New York

City households exceeded those of

Boston households by 20 percent.

Prices throughout the country had

increased at a more moderate rate since

1996 than during the previous decade.

The cost of a pound of round steak,

for example, had risen 23 percent; the

cost of a dozen eggs was up 12 percent; and the price of a pound of butter had increased 37 percent.

Demographic change had continued to alter U.S. households, including those in New York City and Boston. The median age in the country

had risen to 35.3, the oldest in a cen-
63

2002–03

more for food at home. In buying groceries, New Yorkers allocated more for

meat, poultry, fish, eggs, fruits, vegetables, cereal, and baked goods than

did Bostonians, who spent more on

dairy products.

New York City households allocated

greater expenditure shares for clothing

overall and for women’s apparel than

did households in Boston, which spent

more on men’s clothing.

Spending for transportation, reading and education, healthcare, and personal care continued to represent important components of family expenditures

throughout the country and in New

York City and Boston.

Table 29. Expenditures and expenditure shares, United States, New York City, and Boston, 2002-03

Food .......................................................................................... $ 5,357 13.1 $ 7,005 13.9 $ 5,627 13.5

Alcoholic beverages ................................................................. 384 .9 469 .9 504 1.2

Housing ..................................................................................... 13,359 32.8 18,919 37.6 15,211 36.4

Apparel and services ............................................................... 1,694 4.2 2,638 5.2 1,610 3.9

Transportation ........................................................................... 7,770 19.1 7,729 15.4 7,175 17.2

Healthcare ................................................................................ 2,384 5.9 2,235 4.4 2,007 4.8

Entertainment ........................................................................... 2,069 5.1 2,350 4.7 2,019 4.8

Personal care products and services ...................................... 526 1.3 643 1.3 496 1.2

Reading and education ............................................................. 901 2.1 1,426 2.8 1,281 3.1

Tobacco ..................................................................................... 305 .7 266 .5 273 .7

Miscellaneous ........................................................................... 698 1.7 771 1.5 473 1.1

Cash contributions ................................................................... 1,324 3.2 949 1.9 1,016 2.4

Personal insurance and pensions ............................................ 3,978 9.8 4,918 9.8 4,121 9.9

Average income per family ..................................................... 50,302 66,643 59,648

Average expenditures, all items .............................................. 40,748 50,319 41,814

NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Expenditure shares do not add to 100 due to rounding.

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

United States New York City Boston

Item

Expenditures Shares Expenditures Shares Expenditures Shares

tury, while in New York City it was 34.2

and in Boston, 31.1.

Average family size in the country

had held steady at 2.5, the same figure

recorded for Boston. New York City

households were slightly larger, with

2.6 people.

For the first time, women constituted

the majority (52 percent) of New York

City’s workforce, while women’s share

of the workforce approached 50 percent in Boston and was less for the

country as a whole.

Two-thirds of Americans owned

their home, while the percentages in

New York City and Boston were

lower—55 and 57, respectively.

On average, U.S. families devoted

50 percent of their budget to spending

for necessities, while households in

New York City and Boston allotted

higher shares—57 percent and 54 percent, respectively.

Housing expenditure shares, particularly those for shelter, were equivalent in New York City and Boston. Boston families, however, allotted larger

shares of their housing spending for

utilities and fuel and less for household operations than did their New York

City counterparts.

Expenditure shares for food also

were similar in the two cities, although

New York City families spent slightly

Chart 36. Expenditure shares, United States, New York City, and Boston, 2002-03

United States

Food

13.1%

Clothing

4.2%

Housing

32.8%

Other

49.9%

New York City

Food

13.9%

Housing

37.6%

Other

43.3%

Clothing

5.2%

Boston

Clothing

3.9%

Housing

36.4%

Food

13.5%

Other

46.2%

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
65

Reflections

Reflections

Over the past 100 years, the

economic and demographic

profiles of households in the

United States, including those in New

York City and in Boston, have changed

significantly. These shifts, largely positive, have been both dramatic and

gradual. They are manifested not only

in income and expenditure patterns, but

also in family structure and social transformation. In many ways, the only

thread of commonality between U.S.

households in 1901 and in 2002–03 is

their geographic location.

Family characteristics were transformed. In 1901, the size of the average

U.S. family was 4.9 people; by 2002–

03, it had been reduced to 2.5, the average family size in New York City to 2.7,

and the average family size in Boston

to 2.3.

Women entered the workforce in

large numbers. In 1901, women made

up 25.0 percent of New York City’s labor force and 28 percent of Boston’s.

By 2000, 51.9 percent of the people

working in New York City were women,

while in Boston women constituted 49.9

percent of all workers.

Standards of living rose, and nowhere was the effect more apparent than

in household incomes over the 100-year

period. In 1901, the average U.S. family

earned $750. By 2002–03, family incomes

in the United States had increased 67-

fold, to $50,302. (See chart 37.)

Significantly, this increase in incomes was real, as can be seen when

incomes are adjusted for inflation. (See

chart 38.) As noted, in 1901 the average U.S. family’s income was $750. In

2002–03, this family’s real income, expressed in 1901 dollars, would have

increased threefold, to $2,282. The increase for New York City families was

by a factor of 4.5, to $3,023; the increase

for Boston families was fourfold, to

$2,706.

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

United States

Boston

New York City

Chart 37. Income for the United States, New York City, and 

 Boston

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
66

100 Years of U.S. Consumer Spending

The sources of incomes changed,

too. In 1901, the average U.S. family

received 90.5 percent of its income from

the earnings of family members, with

9.5 percent of these earnings contributed by children. By the 21st century,

only 80.7 percent of family income came

from the direct earnings of family members. Interestingly, in 2002-03 in New

York City and Boston, family earnings

constituted a greater proportion of

household income than they did in the

country as a whole. In New York City,

family members’ earnings contributed

85.0 percent to total household income;

in Boston, family earnings contributed

89.0 percent.

During the 100-year period, household expenditure patterns also demonstrated great variability. In 1901, the

average U.S. household had $769 in

expenditures. By 2002–03, these expenditures had increased 53-fold, to

$40,748. Over the same period, expenditures in New York City had increased

62-fold, from $814 to $50,319, while in

Boston, the increase was 48-fold, from

$880 to $41,814. (See chart 39.)

In real dollars, calculated with 1901

as the base, expenditures also demonstrated a notable increase. In 1901, as

noted, the average U.S. family had $769

in expenditures. By 2002–03, that

family’s expenditures would have risen

to $1,848, a 2.4-fold increase. In New

York City the increase would have been

2.8-fold, from $814 to $2,283; in Boston

the increase would have been 2.2-fold,

from $880 to $1,897. (See chart 40.)

The material well-being of families

in the United States improved dramatically, as demonstrated by the change

over time in the percentage of expenditures allocated for food, clothing, and

housing. In 1901, the average U.S. family devoted 79.8 percent of its spending to these necessities, while families

in New York City spent 80.3 percent,

and families in Boston allocated 86.0

percent. By 2002–03, allocations on necessities had been reduced substantially, for U.S. families to 50.1 percent

of spending, for New York City families

to 56.7 percent, and for Boston families

to 53.8 percent. (See chart 41.)

The continued and significant decline over the century in the share of

expenditures allocated for food also

reflected improved living standards. In

1901, U.S. households allotted 42.5 percent of their expenditures for food; by

2002–03, food’s share of spending had

dropped to just 13.2 percent. For New

York City households, the expenditure

share had declined from 43.7 percent

to 13.9 percent; for Boston households,

the decline was from 41.7 percent to

13.5 percent. (See chart 42.)

Beginning in the 1970s, another

trend emerged in spending for food. At

the time, the average U.S. family allocated 72.4 percent of food expenditures

for food eaten at home and 26.4 percent for food eaten away from home.

In New York City, a similar pattern held:

households allocated 72.2 percent of

their food spending for food eaten at

home and 26.7 percent for food eaten

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

United States

Boston

New York City

Chart 38. Income deflated to 1901 for the United States, 

 New York City, and Boston

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
67

Reflections

$0

$10,000

$20,000

$30,000

$40,000

$50,000

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

United States

Boston

New York City

Chart 39. Expenditures for the United States, New York 

 City, and Boston

$700

$900

$1,100

$1,300

$1,500

$1,700

$1,900

$2,100

$2,300

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

United States

Boston

New York City

Chart 40. Expenditures deflated to 1901 for the United 

 States, New York City, and Boston

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
68

100 Years of U.S. Consumer Spending

away from home. Boston family food

expenditure patterns were different,

with 66.1 percent of food spending allocated for food at home and 33.5 percent allocated for food eaten away from

home.

By the 21st century, however, the

average U.S. family allocated just 58.1

percent of food spending for food eaten

at home and 41.9 percent for food eaten

away from home. Similar patterns existed in New York City and in Boston:

the allocations in New York City were

54.4 percent and 45.6 percent, respectively; in Boston, they were 58.7 percent and 41.3 percent.

Changes in diets also occurred over

the 100-year period. In 1901, New York

City families allocated 40.4 percent of

their grocery expenditures for meat,

poultry, fish, and eggs; 16.3 percent for

dairy products; 14.5 percent for fruits

and vegetables; and 11.0 percent for

cereals and bakery products. Among

Boston families, the allocations for

these four categories of items were 48.4

percent, 17.5 percent, 8.3 percent, and

9.2 percent, respectively.

By 2002–03, grocery expenditure

shares for meat, poultry, fish, and eggs

had decreased to 28.3 percent in New

York City and to 27.2 percent in Boston. Shares for dairy products had decreased to 10.4 percent in New York City

and 10.8 percent in Boston; shares for

fruits and vegetables had increased to

19.2 percent in New York City and 17.0

percent in Boston; and shares for cereals and bakery products had increased

to 15.0 percent in both cities.

Home ownership shifted markedly.

In 1901, 19 percent of Americans owned

their home, while in 2002–03, 67 percent of U.S. families did. In 2002–03,

56 percent of New York City households

owned their home, while in Boston, the

share was greater: 59 percent.

With greater home ownership and

higher housing costs, in the 1960s family spending for housing became the

most significant item in household budgets, displacing spending on food.

Spending for shelter constituted the

single largest segment of the average

family’s housing expenditures: 62.5 percent in the country as a whole, 62.7 percent in New York City, and 66.8 percent

in Boston.

Forty years later, in 2002–03, shelter

costs represented 19.3 percent of total

household expenditures in the country as a whole, 24.6 percent in New York

City, and 24.3 percent in Boston. In

other words, 1 out of every 4 dollars

spent by New York City and Boston

families went for shelter.

With the rise in expenditures for

shelter came an increase in spending

for utilities. In the 1970s, the average

U.S. family allotted 4.9 percent of total

spending for utilities; the average New

York City family, 3.8 percent; and the

average Boston household, 4.9 percent. By 2002–03, shares of total

spending for utility costs were 6.7 percent, 6.1 percent, and 6.4 percent.

Over the 100-year period, expenditure shares for clothing steadily de50

55

60

65

70

75

80

85

90

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

Percent

United States

Boston

New York City

Chart 41. Food, clothing, and housing expenditure shares

 for the United States, New York City, and Boston

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
69

Reflections

clined. In 1901, the average U.S. household allocated 14.0 percent of total

spending for apparel, while households

in New York City allocated 13.0 percent

on average, and households in Boston, 14.4 percent. By 2002–03, spending shares for clothing had decreased

to 4.2 percent in the country as a whole,

5.2 percent in New York City, and 3.9

percent in Boston.

In the clothing category, in 1901 New

York City families allocated 6.3 percent

of total spending for children’s clothing, 3.9 percent for men’s clothes, and

3.6 percent for women’s apparel. In

Boston, the corresponding allocations

were 5.6 percent, 4.8 percent, and 5.0

percent, respectively. By 2002–03,

women’s clothing had become the

single largest component of the clothing budget in both cities, at 2.0 percent

of total spending in New York City and

1.5 percent in Boston.

In 2002–03, the average U.S. family

could allocate 49.9 percent ($20,333) of

total expenditures for a variety of discretionary consumer goods and services, while the average family in 1901

could allocate only 20.2 percent, or

$155, for discretionary spending. (See

chart 43.) In 2002–03, New York City

families had 43.3 percent ($21,738) and

Boston families had 46.2 percent

($19,360) of income left to spend on

non-necessities, compared with 19.8

percent ($161) and 14.0 percent ($124),

respectively, in 1901. (However, families in 2003 had to pay Federal, State,

and local taxes, which did not exist for

1901 families.)

The ability to buy more discretionary goods and services also improved

the U.S. standard of living. The emergence of the family car was one example. In 1934–36, 44.4 percent of

U.S. households owned an automobile, while the percentages were significantly less in New York City and in

Boston—14.8 and 14.1, respectively—

where well-developed public transportation was available. By the 21st

century, there was at least one vehicle

in 88 percent of U.S. households, with

the average family owning 2.0. In New

York City, the average household

owned 1.4 vehicles; in Boston, 1.6.

Besides big-ticket items, items such

as reading and education became integral components of daily life throughout the country, while items such as

personal care products became relatively less expensive. In 1901, New York

City families allocated 1.1 percent of

spending for reading and education;

for Boston families, the share was 1.3

percent. One hundred years later, these

items accounted for 2.8 percent and 3.1

percent, respectively, of all spending

by New York City and Boston families.

Nationwide, the average family allocated 2.1 percent of spending for reading and education.

From 1950 to 2002–03, spending

shares for personal care products decreased. In 1950, the average U.S. family allotted 2.2 percent of total spending for such products; New Yorkers and

Bostonians allotted 2.1 percent and 2.3

10

15

20

25

30

35

40

45

50

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

Percent

United States

Boston

New York City

Chart 42. Food expenditure shares for the United States,

 New York City, and Boston

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
70

100 Years of U.S. Consumer Spending

percent, respectively. By 2002–03, all

these shares had fallen to around 1.3

percent.

Entertainment has remained an important component of the U.S. lifestyle.

According to the survey done during

the Depression (1934–36), U.S. households allotted 5.4 percent of their expenditures for entertainment, on average. The expenditure shares in New

York City and Boston were 6.2 percent

and 4.6 percent. By 2002–03, expenditure shares for entertainment were 5.1

percent nationwide, 4.7 percent in New

York City, and 4.8 percent in Boston.

Spending for healthcare always has

been an important part of household

budgets. In 1901, the average New York

City family allotted 2.1 percent of

spending for healthcare, while the average Boston family allotted 2.6 percent. By 2002–03, these shares had

shifted to 4.4 percent and 4.8 percent,

respectively.

No clear pattern emerges in spending on alcoholic beverages. In 1901,

New York City families allotted 2.9 percent of their spending for alcohol, while

in Boston the share was 0.7 percent.

Interestingly, by 2002–03, the expenditure shares had declined in New York

City to 0.9 percent, and risen in Boston

to 1.2 percent.

Charitable giving always has been part

of the expenditure patterns in both New

York City and Boston. In 1901, New York

City families allocated the equivalent of

1.1 percent of their spending for charitable contributions, while Boston families donated 1.5 percent. By 2002-03,

these percentages had increased to 1.9

in New York City and 2.4 in Boston.

Perhaps as revealing as the shift in

consumer expenditure shares over the

past 100 years is the wide variety of

consumer items that had not been invented during the early decades of the

20th century but are commonplace today. In the 21st century, households

throughout the country have purchased computers, televisions, iPods,

DVD players, vacation homes, boats,

planes, and recreational vehicles. They

have sent their children to summer

camps; contributed to retirement and

pension funds; attended theatrical and

musical performances and sporting

events; joined health, country, and

yacht clubs; and taken domestic and

foreign vacation excursions. These

items, which were unknown and undreamt of a century ago, are tangible

proof that U.S. households today enjoy a higher standard of living.

15

20

25

30

35

40

45

50

55

1901 1918-19 1934-36 1950 1960-61 1972-73 1984-85 1996-97 2002-03

Percent

United States

Boston

New York City 

Chart 43. Expenditure shares for non-necessities for the

 United States, New York City, and Boston

SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
71

1901

References

1901

U.S. Commissioner of Labor, Eighteenth Annual Report 1903: Cost

of Living and Retail Prices of Food.

Washington, Government Printing

Office, 1904.

1918–19

Cost of Living in the United States,

Bulletin 357. Washington, Bureau

of Labor Statistics, 1924.

Fourteenth census of the United States

taken in the year 1920: Population. Washington, U.S. Department

of Commerce, Bureau of the Census, 1921.

1934-36

Money Disbursements of Wage Earners and Clerical Workers in the

North Atlantic Region, 1934-36,

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1939.

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of Labor Statistics, 1941.

Family Income and Expenditure in

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1950

Family Income, Expenditures, and

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1952–57.

1960-61

Consumer Expenditures and Income,

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of Labor Statistics, 1964.

Consumer Expenditures and Income,

New York, NY, 1960-61, Report

237–54. Washington, Bureau of Labor Statistics, 1963.

Consumer Expenditures and Income,

Boston, Mass., 1960-61, Report

237–57. Washington, Bureau of Labor Statistics, 1964.

1962 County and City Data Book.

Washington, U.S. Department of

Commerce, Bureau of the Census.

1972-73

Consumer Expenditure Survey, Integrated Diary and Interview Survey

Data, 1972-73, Bulletin 1992. Washington, Bureau of Labor Statistics,

1978.

Statistical Abstract of the United

States, Bicentennial Edition: Historical Statistics of the United

States, Colonial Times to 1970,

Part 2. Washington, U.S. Department of Commerce, Bureau of the

Census, 1975.

1972 County and City Data Book.

Washington, U.S. Department of

Commerce, Bureau of the Census.

1984-86

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Bulletin 2333. Washington, Bureau

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1983 County and City Data Book.

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1996-97

Consumer Expenditure Survey, 1996–

97, Report 935. Washington, Bureau of Labor Statistics, 1999.

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2002-03

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Department of Commerce, Census

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www.census.gov/prod/www/

ccdb.html (visited May 12, 2005).

Primary Sources
72

100 Years of U.S. Consumer Spending

Acknowledgments

The authors would like to thank thefollowing people for their assistance in the preparation of this report.

Mr. Wigberto Clavecilla

Economist

U. S. Bureau of Labor Statistics

New York, NY

Mr. John M. Rogers

Section Chief

Supervisory Economist

Office of Prices and Living Conditions

U. S. Bureau of Labor Statistics

Washington, DC

Ms. Rosemarie Fogarty

Information Service Specialist

U. S. Census Bureau

New York, NY

Ms. Tina Plottel

Reference Librarian

U. S. Census Bureau

Washington, DC

Mr. Gary Spinner

Visual Information Specialist

U.S. Bureau of Labor Statistics

New York, NY

Ms. Hermenia Jewth

Executive Assistant

U.S. Bureau of Labor Statistics

New York, NY

Mr. Bruce Boyd

Graphic Artist – Cover Art

Office of Publications and Special

 Studies

U. S. Bureau of Labor Statistics

Washington, DC

Ms. Margaret Jones

Visual Information Specialist

Office of Publications and Special

 Studies

U. S. Bureau of Labor Statistics

Washington, DC

Ms. Allison Tarmann

Writer Editor

Office of Publications and Special

 Studies

U. S. Bureau of Labor Statistics

Washington, DC

Mr. Jim Titkemeyer

Labor Economist

Office of Publications and Special

 Studies

U. S. Bureau of Labor Statistics

Washington, DC