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Show Workers' Income Rises as Expenses Stay at 1936 Level Increased Buying Power . Reflected in High Store Sales. MINNEAPOLIS. Spreading payrolls pay-rolls from roaring defense industries indus-tries have hoisted the American family's buying power to new recovery re-covery heights, a current family buying-power survey reveals. The average urban worker's household saw its monthly Income soar nearly $7 In the last six months of 1940, while household expenses remained at 1936 levels, according to a current cur-rent family buying-power study. The favorable margin between average av-erage earnings and living costs is the largest in the eight-year history of the company's index, according to the survey conducted by the Northwestern National Life Insurance Insur-ance company. Record department store trade volume, and improved installment collection ratios reflect this greater net buying power in the hands of the American consumer. Living costs sank to a low for the year in October, and have stiffened a trifle since, but have been far outstripped by the rise In industrial pay checks, the report states. Measuring the effects of payroll and living cost changes on the American pocketbook, the study shows that an average employed worker's family of four, with earnings earn-ings of $120 at average 1933 payroll pay-roll levels and spending the same amount for its living expenses at average-1933 retail prices, had to pay $131.11 in June, 1936, to maintain the same standard of living; meanwhile mean-while the family pay check had climbed to $133.92. In June, 1940, the same standard of living for a family of four cost $131.86, while the family's pay check had climbed to $150.86; by the year-end, year-end, the monthly pay check had rocketed almost another $7, to $157.49, while living costs had actually actu-ally fallen $1.10 from June levels, totalling $130.76 In December, 1940, or practically the same as in mid-1936, mid-1936, the report shows. Thus the great Increase In payrolls pay-rolls in recent months has meant a net increase In American spending power, the report points out, as total to-tal living costs are the same as they were a year ago, and actually less than they were last summer. Minor Increases in clothing and fuel, have been offset by the decline in food prices, the study shows. |