The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1937-12-11
REAL INCOME OF CONSUMER
RISES DESPITE TRADE SLUMP
Especial to The Citlsen)

MINNEAPOLIS, Dec. ia
gain of six cents on the dollar
over year ago in real income"
of the average citizen explains
why the business recession has
not cut seriously into some trades,
according to study made public
here today by Investors Syndi-
cate.
"When Mr.. and Mrs. Average
Householder have $l.13 for every
81 they had year ago." explain
ed the consumers study, "and
when they have to spend only
$1.06 for every 81 they spent a
year ago, they will continue to
buy briskly, provided, of course,
they see prospects of their income
continuing"
National consumption capacity
actually is at the best levels since
the depression, because the pres
ent business recession has not yet
cut seriously into the real in
come" of American consumers. If
this consumption capacity is
maintained and exercised, the
question of top-heavy inventories.
nav worrying the economists,
should not long prove trouble.
some.
Public buying power has been
accelerated by the increased cash
income being placed in the hands
of the farm population. Urban
cash income WREN contrasted with
November 1, 1896, is not particu-
larly impressive because it was at
this season last year that the wave
of wage increases began to swell
substantially.
Wages show the largest gain in
cash incomes. being up IA cents
on the dollar as contrasted with
November l, 1886. Investment i'm
come, despite the recent collapse
of security prices, ranks second in
point of gain, dividend and inter-
est payments combined averaging
eleven cents on the dollar more
than at the start of November a
year ago. Other income, which is
composed largely of payments to
farmers and individual business
owners, stands at S1.09 in relation
to last years dollar. Salaries,
however, are up only six cents on
the dollar, contrasted with the
same month in 1896.
Living costs, by their advance
of six cents on the dollar over a
year ago, have somewhat offset
the gain in cash incomes.
Food, the biggest single item on
the budget of the average house
holder, shows the smallest gain in
daily expenses when compared
with a year ago, because only
$1.02 today is required to buy the
same amount % nourishment that
could be had for S1.00 on Novem-
Der /, 1886.
Rents--a particularly signific-
ant figure TO those wondering
about resumption of building ac-
tivity-have gone up so much that
il requires $l.l0 to rent an apart
ment, flat, cottage or house for
every 81 asked at the start of No
vember, 1896.
Clothing, another important
item in living expenditures, is up
six cents on the dollar over year
ago, being the last of the major
items to stage an advance. Mis-.
cellaneous expenses, such as
amuSementS, automobiles, mani
cures, shaves and so on. are five
cents on the dollar higher than
they were at the beginning Of No
vember. 1886.
The difference between the
cash income OF the average eItl-
zen and his cash outgo is his real
income This real income" Of
S1.06 IS not mere subtraction OF
cash income from cash outgo-
which would he an index Of saw
ings rather than real income-but
an average Of relative figures Of
income and outgo designed to
show how the cost Of living az
fleets the adjusted income dollar.