Madison County Democrat. (London, Ohio) 19??-1958, 1951-07-27
Today's Business Mirror
Rx sam Dawson

vests are in the prospect in many
parts of the country. But f ! o d
professors are counting on tn e
rising total of personal incomes to
keep sales volume high in tn G
nations grocery stores this win
ter.
Americans like to eat we'll The
better their incomes the more
they spend, as rule. at the groc-
cry. Housewives swing up and
down the food economy scale as
their husbands take-home Fay
rises or falls.
Full employment and hig h c r
wage scales, the food professors
say, should take care of the n w
big crops, although a few see
hopes that abundance may m n
that prices can drop nearer to the
pre-korean level.
Retail grocery sales are w
reported running at an annual
rate of around S35 billion. Ev n
price resistance to some more ex-
pensive items hasn't cut total pur-
chaseS of cons lmers back much
this summer, spokesmen for tn e
grocery trade say. The lar & @
retail units report dCil:r volume
running a@,Ii sevei per cent
above Iast y@@'. largely reflect,
ing post-Korean price rises.
Wholesale srocccs. h, wever. 1re
having their inse otcry problems,
similar to those in other indus
tries, but not nearly so acute as
in some. THE only bugdensome
inventories threatened in o cd s.
says the American Institute of
Food Distribution are mo n &
some Gamers and freezers. But
analysis of the startling increase
in consumer buying power empha-
sizes that any extreme pressure
on food prices may be dde tc ner-
chandising bi ndcrs."
Grocers are selling tc so mady
more families with annual incomes
over $4,000 that there has be-. (!
an unexpected increase in de-
mands fer better 9daiity foCds n
wider variety, the institute holds,
Federal statistics would seem
to bear this out, both as to h 0 W
incomes have grown and widened
out through the economy, and
as to how Americans spend their
money in the grocery.
Ten years ago SIS million fam
lilies had annual incomes of more
than $1,000, but today 27 million
families have. Even taking into
account the higher prices, tn S
still leaves a large total income
to be spent at the grocery. And
also. there are IA million m r c
families now than in 1941 in the
nation. That accounts for m h
of the growth in retail foo d
store sales from S125 million in
1941 to nearly S35 billion today.
Federal reserve board figures
show how family food buying in.
creases as incomes go up Fam.
lies with incomes above $4,000
spend about twice as much as
those with less than $1,000, al
though the latter group hand:
over "a per cent of his income t.
the grocer.
For every dollar that the fam
lily with the lowest income spends
a family in the $1,000 to S4,00'
class spends $3.50. While familie
with incomes of $500 and owe
spend S263 at the grocers TO.
each 81 the lowest group spends
Only IT per cent of the highes
| groups income goes for food
t however.
Rise in industrial pay scales ha
played a major part in maxim
America as whole eat better
and in many cases get more in re
lation to the hours spent at labor
The Bureau of Labor Statistic
+. compares the minutes of work re
quired by industrial workers
purchase certain food units.
labor longer to be able TO b u
steak, pork chops, coffee and flou
than he did in 1889. But he work
fewer minutes now than in 1913
i, to be able to buy white breat
! bacon, butter, milk, eggs, pots
s toes and sugar.
And the Bureau reports toda
that weekly earnings of factor
workers have gone up $6.59 j
the last year.
1t is these gains, raising tn
q number Of person in the $1,000
: year and over class, that enable
: Americans to eat better n
0 matter how much the high pric
n of food pG.ns them.