Evening star., 1947-10-19

those who are enjoying the greatest
increase in their standard of living
The reverse side Of the economic
picture is, of course, not so pretty
Widows living on annuities, person!
who get their income from the in.
terest on Government bonds anc
others with fixed incomes are seri.
ously injured by imitation, perhaps
irreparably. Moreover, millions o.
white-collar workers whose salarie
have not yet caught up with rising
living costs have suffered. severe loss
Price Index Yardstick
These facts have been CLEANED
from conversations with many econ.
omists who advise the Government
and from the statistical reports Of
such agencies as the Federal Re.
serve Board and the Departments Of
Commerce, Labor and Agriculture.
The best measure of current
prices, in the opinion of the average
Government economist. is the Blu.
reau of Labor Statistics Consumer
Price Index.
This is a measure of the change
in retail prices of goods bought by
moderate income families, the rent
they pay and services they buy. The
figures are weighted" according to
the amount spent on each item. For
instance, the index assumes the
average family now is spending 431
per cents of its budget on food and
only 13 per cent on rent.
The index indicates that rents rose
only 10 per cent between 1935-193s
and July IS, 1947. Food took the
highest jump, 90 per cent. Clothing
and house furnishings were up about
"a per cent each.
Against this average So per cent
rise in the cost Of living, balance
these figures:
1. Disposable income (what you
have left after personal taxes and
other payments to the Government)
rose from $70,167, 100000 in 1899 to
$l5s ,42s ,o0o. 900 in 1s46-about 125
per cent.
Who Makes 1t Alp
2. Personal consumption expendi.
lures rose from $67 1866, 900, 900 ir
1899 to s143,67o 100000 in 1916
113 per cent.
3. In 1889 people saved out o1
current income $2,7o1, 100000. Ir
1916 they saved $14,75s, 900 900. Ac'
cumulated savings, called "liquie
asset holdings" by the Fedora
Reserve Board, rose from $65, ,100,'
100000 in 1889 to 1928, 200, ,o00,0 900 ir
1916.
President Truman, in his July
economic report, citing the large in.
crease in per capita disposable in
come, said that it indicates Amer
lean consumers are, on the average
better off than before the war"
They live in a richer and more
productive economy" he said, "and
they are sharing its benefits"
As to who is making all this
money, you get broad clue from
the Commerce Departments anal
ysis Of business incomes.
However, total figures on incomes
in the business groups-like those
on incomes in any other group-are
not necessarily the full story. In
each group the wages or incomes OF
some persons have risen far more
than other persons in the same
group.
For instance, while the total in
come for business and professional
persons has greatly increased, 1t is
possible that much of the increase
is represented by business and pro-
fessional men who already were
making large incomes and have
gone ahead far out Of proportion
to some of their colleagues.
The Commerce Department anal
ysis shows that:
l. Income from farms more thar
tripled between 1899 and l946, risine
from $4,506 ,000, 900 to $15,213,00 900
2. Business and professional in.
comes finished close to farmers
They rose from $6,776, ,000,0 ir
1899 to SIG, ,738, ,O0O, 900 in 1916.
3. A rather poor third in thi.
group is corporate profits, which
rose from $5,0o5, 900, 900 to $l2,53o,.
000,0 900.
4. The lowest income raise listec
is that received from rentals, which
gained 100 per cent, rising from
SO, ,465, ,0o0, 900 in 1899 to Sc, 1866 600, ,00t
in 1916.
The Trend of Wages
That's the story for business in.
comes-a 100 to 300 per cent rise
in the past eight years.
Among wage earners the income
rise has not been that high in any
large category, but many have
vastly improved their economic con-
dition. The pay OF workers ir
manufacturing industries rose 1Oe
per cent from 1899 to July Of this
year.
The only complete survey OF
average annual wages Is compiled
by the Commerce Department, and
none Of its statistics go past 1916.
Here are department figures