Evening star., 1962-11-18
U. S. Reports
20-40oo Coins
In 7-City Study
By CLARENCE HUNTER
Star staff Writer


heir income gains continued to
leep ahead of price increases,
he Labor Department reported
yesterday.
Labor Secretary Wirtz said
hat new Bureau of Labor
Statistics studies of consumer
in the Washing
ton area and six other metro
oolitan centers point clearly to
"a continuing and substantial
increase in the Nations stand
ard of living"
1T is a measure of both the
fruits and the potential of our
free economy that the residents
Of these seven cities enjoyed an
increase in their real pur-
chasing power, over the past
of from 20 to 40 per
cent" Mr.. Wirtz said. g-
The Washington area survey
included families in the Dis
trict; Montgomery and Prince
Georges counties in Maryland;
Arlington and Fairfax counties
in Virginia, and the Virginia
cities of Alexandria and Falls
Church.
So Pct. Higher
Washington area families
had an after-tax money income
of $4,000 in 1860, So per cent
higher than in 1947, Evan
Clague, Bureau Of Labor Sta
tisticS Commissioner, said.
Even after adjustment for a
% per cent rise in Washington
consumer prices during the past
13 years, area families had a
real income 20 per cent higher
in 1860 than in 1947, Mr..
Clague said.
Their current living expenses
for 1860 were $5,813, or 43 per
cent more than the $4,065 they
spent in 1947, Mr.. Clague said.
Not only did Washington
area families spend more in
1860 for all major types Of
goods and services than IN
1947. but they also signifi-
cantly changed the share Of
outlays for the different kinds
of things they purchased. Mr..
Clague said.
Housing Expenditure
Families spent 32.2 per cent
of their 1860 expenditures for
housing, compared with 20.9
per cent in 1947. Automobile
purchase and operation rose to
11.3 per cent from 8.8 per cent,
partly because of the postwar
shortage of autos in 1947.
Expenditures for food and
beverages dropped from 300
per cent of spending in 1947
to 25 per cent in 1860, the
Labor Department statistics re-
vealed. Money spent for cloth
ing dropped, too, from 1872
per cent in 1947 to 10.4 per
cent in 1860.
Medical care and personal
care took larger shares of the
Washington family's money in
1860 than it did Is years ago.
Mr.. Clague said that a fourth
of medical expense in 1860 was
in payment Of premiums for
disqualification, surgical and
other forms of, health insur-
ances or health service plans.
reported by almost eight Of
every 10 families in the area.
Washington area families in
1860 also gave $317 in gifts and
contributions and put $457 into
various kinds Of life insurance
and retirement plans. The
average family unit paid in
come and personal taxes Of
$685. and had an average saw
ing of 1851, through a net in
crease in their assets over their
liabilities. the BIS survey re-
ported. The savings were
mainly in the form Of in
creased equity in homes and in
larger investments in business.
20 Pct. for Shelter
The statistics revealed also
that about 43 per cent of all
families in the Washington area
were home owners in 1860, while
So per cent were renters. The
remaining per cent were rent
ers part Of the year and home
owners the remainder. The ALL
year home owners spent $1,43I
or 20.2 per cent Of their total
expenditures for shelter, fuel
and light. while the comparable
expenditures for renters aver
aged 1928, or 20.5 per cent of
their total expenditures.
About half the families con-
sisted of three or more and
their average expenditures ex-
ceeded $1,000 in 1860. These
families were predominantly
home owners and car owners
and nearly all had children
under 18 years old. o
Families whose heads were
between 25 and 81 years of age
comprised seven of 10 families
in the area. Their incomes and
expenditures were highest.
Families with the head under
rs were more likely to be rent
ers and spent larger proportions
of their income eating out and
for auto purchase and opera
ton.
The studies are being done
to revise the Consumer Index
in January. 1864, to go into
effect in June Of that year.
They will provide a continu-
ing report on changing COM
sumner economic conditions by
areas, age groups and income
levels, Eventually, the survey
will cover 66 metropolitan
areas, including all having l..
250,000 population or more, as
we'll as selected smaller COM
munities and rural areas.
a.