Montana labor news., 1944-06-29

AVERAGE COST OF
LIVING UP 45.3 %
SAYS Clio REPORT

WASHINGTON GP) Concluding
that the total average cost of living has
risen $3.50 between January, 1941, and
March, 1914, CLIO Pres. Philip Murray
and Pres. R. ]. Thomas of the United
Automobile Workers CCIO) June 26 urged
abandonment of the Bureau of Labor
Statistics index as a measure of the
total rise in living costs.
The findings of the two leaders was
included in a new study Living Costs in
World Wal II" a large, heavily docu-
mented report.
In a joint statement they said "the
findings of our report are not in Con-
flict with the conclusions reached in the
report of DR.. Mitchell and his associates
DR.. Wesley C. Mitchell who made the
technical report to the Presidents com
mittee on the cost of living that criti-
cized the BIS figures.) "The Mitchell
report deals with the shortcomings Of
the BIS as a measurement Of retail
prices. The CLIO report measures not
only the price factor in living costs but
all the other factors that affect the
wartime rise in the cost Of living.
The U. S. government does not have
a measurement of the total rise in living
costs, since the BIS index measures only
the price factor. Hence the only meas
urement of total living costs is that pro-
vided by the CLIO in its report Living
Coefe IN uLorld War TTin
The new study brings up to date a
previous n released jointly by AFL
Sec.-Treas. George Meany and CLIO Vice
Pres. Thomas in January Of this year,
which showed an increase of 1850 as
against the increase of 23.4% estimated
by the BIS and used as the basis Of WLB
awards under the Little Steel formula.
According to the new report, the cost
Of food has gone up 71.9%; clothing
1880; house furnishings 63.5%; rent
1870; fuel etc. 1890 and miscellaneous
costs 22.896.
Commenting on the variation between
the new CLIO figures and those Of the
BIS index, which are generally lower
by one-half or more than those shown,
the CLIO report says: THE difference
was due to the failure of the BIS Index
to reflect fully the effects of such war
time factors as quality deterioration,
forced t~rading-up (buying higher priced
articles because cheaper goods are not
on the market), the disappearance OF
special sales and sales at above ceiling
prices.
we conclude that the original finding
dhe January AFL-CIO report) was con
sentative and that wartime living costs
for the period January 1941 to March
1914 have risen not less than 1890"
The Murray-Thoma report criticizes
the BIS for its reply to the original
AFL-CIO report on living costs, which,
it says, departed from the scientific
plans of discussion and made use of anti
labor propaganda.
"This cannot remain unanswered. The
charge is made directly to the BIS reply,
and is often repeated by %innuendo, that
workers are spending more money not
because of higher living costs, but be-
cause of luxury expenditures, especially
for such items as liquor and caviar"
After an investigation in the field, it
is said, it was proven that workers have
reduced luxury expenditures, not in
creased them; that workers are taking
voluntary cuts in living standards to par
ticipate in full proportion to war bond
campaigns"
The report said "the WLB should dis
card the BIS index as a measure of cost
of living for wage purposes, and substi-
tute instead this realistic-y et-minimum-
measure of 1880 in the rise of wartime
living costs of wage earners and lower
salaried employs.
Main factors for the rise in living costs
are cited as: higher dollar and cents
prices; quality deterioration, forced
t~rading-up; disappearance of low-priced
items; decline in special and weekend
sales; greater increase in restaurant
prices than in prices of food consumed
at home.