Evening star., 1941-02-23
Economists
Continued from Page E-1D

pected to rise to so or IS billions.
compared with "a billions last year.
The average workers share of this
gain, economists say. will more than
pay his increased living costs, at
least for the time being.
Results to be Uneven.
He should have margin left
over to improve his circumstances.
He may eat better food than in
1910. wear better clothes, rent
more attractive house or fiat.
OF course. all workers won't fare
equally well. Those employed in de-
fense industries and rolling up over
time pay will take a long stride
forward in living standards. On the
other hand, some white collar work.
ers who are on a fixed salary rather
than hourly rates may find their
paycheckS won't stretch as far as
they did year ago.
On the whole. however, lower
salaried workers and wage earners
should improve their status during
194l, economists contend.
Food, which accounts for more
than 80 per cent of the average
wage earner's expenses, is expected
to rise only moderately in price.
Prices of wheat and corn are
firmly anchored by huge supplies
under Government loans. If the
price should increase, farmers would
be influenced to draw grain out
from under the loan and sell it in
the open market.
Livestock and vegetable prices
should be slightly higher. most
economists believe, because of the
increase in purchasing power. But
no sharp lifts are expected be-
cause production of both can be
boosted in fairly short period.
In the case of livestock, there is
the additional safeguard of huge
supplies in South America. II prices
should become too stiff, removal of
tariff and other restrictions on Ar
gentine meats would relieve the situ-
alton. Argentine packers, deprived
OF their normal European market,
would welcome an outlet in the
United States.
Food Trends Differ.
In some localities, food prices are
likely to show more increase than
In others. For example, some districts
which were formerly supplied with
vegetables by local farmers may now
find it necessary because of the
growth of defense plants to import
vegetables from other sections at
higher prices.
Rents for the country as a whole
should not rise much, economists
say, despite congestions which have
occurred in some areas. The over
night growth of towns at defense
plant sites has caused rents to sky
rocket in some localities, but this is
by no means a Nation wide situation.
Government-sponsored projects to
provide housing should bring these
rents back in line, they believe.
In some real estate circles, a Ma
tion-wide increase of 10 per cent
in rents has been forecast for this
year. Economists are inclined to
discount these predictions as op-
timistic sales talk, and say that 10
per cent increase for the country as
a whole would be out of line with
supply and demand conditions.
The increase in the cost of cloth
ing is expected to depend on the cost
of wool and the price of labor. The
price of cotton is pretty we'll stab
ilized by the tremendous amount un-
der Government loans. But more
expensive wool and higher wage
rates are expected to bring a mod
crate boost in this item.
Sundry expenses are forecast at
about the same level as in 1910.
Cost of newspapers, doctors fees,
etc, don't vary much. Cigarettes,
pipe tobacco and gasoline may cost
a bit more because of larger tax
burdens instituted in the middle
of 1910.