| Show workers income rises as expenses stay at 1936 level increased buying power reflected in hi high 0 h store sales minneapolis spreading payrolls from roaring defense industries have hoisted the american fam ilys buying power to new recovery heights a current family buying power survey reveals the average urban workers 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 family buying power study the favorable margin between average earnings and living costs is the largest in the eight year history of the companas comp anys index according to the survey conducted by the northwestern national life insurance 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 workers family of four with earnings of at average 1933 payroll levels and spending the same amount for its living expenses at average 1933 retail prices had to pay in june 1936 to maintain the same standard of living meanwhile the family pay check had climbed to in june 1940 the same standard of living for a family of four cost while the fam ilys pay check had climbed to by the year end the monthly pay check had rocketed almost another 7 to while living costs had actually fallen from june levels to talling in december 1940 or practically the same asin as in mid 1936 the report shows thus the great increase in payrolls in recent months has meant a net increase in american spending power the report points out as total 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 |
