| Show DAnSONS DAnSON'S e i AUTHENTIC c REPORT o Rorer Rorert cr t W. W nabon n b on Discusses Cost of Living A few Cew years ago I used to hear people grumbling about the high cost of living wherever wherever wherever ever I went The other day it occurred to me that I had not heard much complaining along those lines for quite a while I wondered whether consumers ers had simply become used to ever climbing retail costs or whether the long term long term climb had stopped without m my realizing it it WHAT TilE THE FIGURES SHOW Scouting about in m my business business business busi busi- ness library ry I soon found some iome figures that I would like to pass along to you ou because because because be be- cause I believe you ou will be surprised at what they tell us about the present economic condition fo the aver a age g e American merican family Living costs have of course been on the therIse therise therise rise long term ever since the pit of or the Ule terrible depression of the Ule earl early On several 0 occasions c cas ion s especially after world war II If the advances were spectacular lar and were keenly felt by all consumer consumers nut But here is something that I do not see common 1 y stressed in the he papers and magazines Over the past five years the consumer price index index in in- dex has moved ahead on average average av av- average av- av only 1 per cent a year WHILE THIS TIllS does represent some pressure on the upside it shows remarkable stability when you consider that since 1939 the cost of or living as measured measured mea by the Labor Department Depart meat ment has sk skyrocketed per cent So it is not surprising that the average consumer has not suffered seriously from the 1 per cent annual boost of or the past five years Gains have simply not been big enough to cause grunt gium- bling r PRICES VERSUS INCOMES Be Beyond ond that too incomes have been swelling at a far more moie rapid rate than have retail re retail retail re- re re- re tail prices puces of or goods and ices Tracing the figures back back- I to 1947 1917 about half way war between between between be be- tween the end of oJ world war II and the beginning of or the Korean Korean Kor Kor- Korean ean war they ther show hour that the Ule cost of or living Jiving has moved mo up 30 per cent since that time lime But take a 3 look at US U.S. incomes for the same span They have climbed per cent EVEN TilE THE rather abrupt jump in consumer prices from 1957 to 1959 of 54 per cent looks pale beside the he of 24 21 per cent in personal income I Ifor for the same two year two ear spell There is no question but that American consumers are aie belter bel bet ter tel off right now than they were even five fi years ears ago They have the actual money to bu buy more than they ever have been able to before in our nations nation's nations nation's nations nation's na na- na- na tion's history And I would like to point out also that Hint the quality of or goods obtainable is on the whole better than ever TIllS THIS APPLIES not only to our own goods but even to those being imported so heavily heavily heavily ily from foreign lands This is a reflection of or the improved industrial standards emerging in Western Europe South America Japan etc And of course many products from overseas arc are available to our consumers at prices considerably considerably considerably consider consider- ably below those of our native goods a boon for the buyer PENSIONED WORKERS When the cost of living climbs nobody suffers more than those with wilh a fixed income in income in- in come such as those living on pensions social security or investments with a set interest inter inter- est After the end of or world war II and after the Korean war the swift of living costs hurt such uch people badly Over the past five years while the pinch became very faintly tighter it did not intrude so bitterly upon di disposable income in income in- in come conic of those with fixed spending power as it had in previous years I AM often asked whether the of retail prices and wage rates that has persisted persisted per per- since the carl early will continue indefinitely er At present there does docs hot seem to be any reason to expect a a reversal re of this long term m wage price inflation But there arc many factors which will be likely likel- to hold it within reasonable check at least for lor a n considerable length of time lime VALUE VJ OF COMPETITION COl Perhaps the most powerful checkrein on the consumer price index over the past five years has been competition both domestic and foreign loreign Rivalry Ri will become only the more intense over o the period period ahead and it will be virtually impossible for Cor manufacturers or service venders to hike prices substantially without losing losing- their competitive position position position tion in both domestic and imd overseas overseas ov ov- overseas ov- ov markets MORE 1 likely savings willbe will willbe willbe be sought via wider technological technological technological techno techno- logical improvements and au- au automation au au- This will twill tend lend to lo hold at a further wage price inci increases cases |
