The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-11-10
Govt Consumers Price Measure
Revision To Take Three Years


negotiators that the government 5
| Consumers price index" doesn't
reflect from month to month the
increases in cost of housing will be
a major subject of study in three
year project expected to cost $4,-
100000.
Commissioner of Labor Statistics
Evan Clague announced on Nov. A
the first steps in making major
revisions of the index-widely
used as a measure of the changes
in prices paid by middle-income
city families for the goods and SER
vices they buy.
More Immediately, he disclosed
that beginning Nov. Ia study of
the "bias" in the rent figures in
the present index, which doesn't
take into account the much higher
rents on new construction, will be
undertaken. Results should Be
known by the summer of 1850, and
he said it is possible that there
will be an immediate revision of
the index to reflect higher rent
costs.
Unions that use the price index
in bargaining and may be consid-
ering tying wages to the price
index were "put on notice" by the
Bureau of Labor Statistics that at
the end of the three-year period
the re-vamped index would replace
the present measure. The study,
though, will have no effect on pre-
sent contracts, most Of which will
expire before the revised index is
used.
The consumers price index,
formerly known as the "cost of
living index" originated in an et-
fort to measure living costs of
families of shipyard workers in
World War l, and was last revised
drastically in 1934-1936. Another
effort to meet changing living
standards and patterns was just
under way when Peral Harbor was
attacked during the war, with
and price control dis
locating normal. family buying,
no effort could be made to improve
the measure.
Investigators working under the
of experts, Clague said,
will try to find the answers to
some of these questions:
With the housing shortage so
acute what is an accurate measure
of the cost of renting or buying a
home? The present index measures
only rents, and assumes that ten
ants pay for light, heat and refrig-
eration-an outmoded practice in
many cities. 1t takes no account of
the fact that many city families
Ire being forced to purchase homes
to get place to live.
How do you describe an average
Urban workers family income? In
l934-1936, the largest number of
such families had incomes around
1854. It's obviously much high
er figure now, but should a larger
range of incomes be included in
he families represented by the
ndex?
What changes in buying-both
he items bought, and the quantity
taken place since
I934-1936? For instance, it's
Known that families are spending
/ greater share of income for cloth
ng and housefurnishings, and less
or fuel, light and refrigeration.
And such items as television sets,
'rozen foods, baby foods and pack
lged desserts aren't even listed in
he present index.
What changes in the quality and
ervicability of commodities ought
O be considered For instance,
women still buy stockings, but buy
lylons instead of silk, and pur-
hase fewer pairs year.
Can the price index for families
,e adapted to describe the changes
n prices paid by single workers:
Many states have laws tying min
mum wages for women workers to
living cost index for single
Can these two indexes be
ompiled together?