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U N IT E D S T A T E S D E P A R T M E N T OF L A B O R Frances Perkins, Secretary B U R E A U O F L A B O R ST A T IST IC S Isador Lubin, Com m issioner (on leave) A . F . H inrichs, A ctin g Commissioner Spending and Saving o f the N ation’s Families in W artim e + Prepared by Cost o f Living D ivision Faith M . W illiam s, C hief B ulletin jN 723 £o. [Reprinted from the M on th ly Labor R eview , O ctober 1942, w ith additional data) U N IT E D ST A T E S G O V E R N M E N T P R IN T IN G OFFICE W A SH IN G T O N : 1942 a F or sale b y the Superintendent o f Docum ents, Washington, D . C. Price 5 cents CONTENTS P age Source of data_________________________________________________________________ Increase in incomes____________________________________________________________ Farm and nonfarm income____________________________________________________ Living-cost changes_____________________________________________________ Use of increased income_______________________________________________________ Definition of savings___________________________________________________________ Changes in savings and expenditures_________________________________________ Savings outlook for remainder of 1942_______________________________________ Farm and nonfarm saving and spending_____________________________________ 2 2 4 6 6 7 7 9 11 LETTER OF TR AN SM ITTAL U nited States D epartment of L abor, B ureau of L abor Statistics, Washington, D . C., October 15, 1942. The Secretary of L abor: I have the honor to transmit herewith a report on spending and saving of the Nation’s families in wartime, presenting data on dis tribution of income among a cross section of farm and nonfarm families, and the way in which those funds are spent or saved. The report was prepared in the Cost of Living Division by Alice C. Hanson and Jerome Cornfield. A. F. H inrichs, Acting Commissioner. Hon. F rances P erkins, Secretary of Labor. ii B ulletin 7S[o. 723 o f the U nited States Bureau o f Labor Statistics [Reprinted from the M onthly L ab or R e v ie w , October 1942, with additional data] SPENDING AND SAVING OF THE NATION’S FAMILIES IN WARTIME This report presents data on distribution of income among a cross section of the Nation’s families and the way in which those funds are spent or saved. It combines data for rural families, both farm and nonfarm, with those for city families. Separate information for city families was presented in the Monthly Labor Review for Sep tember 1942 in an article entitled, “ Income and Spending and Saving of City Families in Wartime.” (See Bureau of Labor Statistics Bull. No. 724.) Changes in American economic life since the outbreak of war in Europe in September 1939 have probably been as drastic and as rapid as in any other period of our Nation's history. In the 2 years ending with April 1942, the number of persons employed had increased by 5.6 millions, unemployment had dropped to 3.0 million persons, and income payments to individuals had expanded by 34.4 billion dollars, an increase of 46 percent. From the time of the battle of Dunkerque and the fall of France in June 1940 to April 1942, the total war contracts let by the Federal Government had exceeded 112 billion dollars and total Federal Government spending had reached the rate of 3% billion dollars per month. The volume of bank deposits and indexes of retail sales were well above 1929 levels. At the same time materials were being rapidly diverted from con sumer goods into military channels, with consequent growing scarcity of goods available to the general population. Such far-reaching developments cannot take place without great changes in customary peacetime buying and living habits of civilians. At the same time, with larger funds than ever before in the hands of would-be purchasers, and with no corresponding increase in the sup ply of consumer goods and services, the possibility of competitive bid ding and rapid price advances becomes a grave danger to the economy. In 1941 and early 1942 it became increasingly clear that unless taxes, savings, or some other form of deferred purchasing power could drain off excess funds, prices were likely to give rise to an inflationary spiral despite programs of price control and rationing. These general developments made it especially important to have actual data regarding the amounts by which family incomes were increasing and the ways in which these added funds were being spent. Accordingly, the Bureau of Labor Statistics and the Bureau of Home Economics of the Department of Agriculture undertook con current studies of the incomes, spending, and saving of city and rural families. 1 2 SPENDING AND SAVING OF FAMILIES IN W ARTIM E Source o f Data These national estimates of the volume of spending and saving by American families are based upon two field surveys, conducted in the spring of 1942. Agents of the Bureau of Labor Statistics interviewed city families and single consumers in 62 cities, and agents of the Bureau of Home Economics of the U. S. Department of Agriculture visited farm and rural nonfarm families and single consumers in 45 counties. The data cover two periods: the year 1941 and the first quarter of 1942. The results of the urban and rural surveys have been combined by the cooperating Bureaus1 to yield a set of Nation-wide estimates for all consumers. A more detailed statement on the nature of the surveys and the methods used will be found in the earlier report.1 2 Increase in Incomes The income of the typical family 3 in the United States illustrates the changes which took place from 1941 to the first quarter of 1942. Such a family had a money income in 1941 of $1,480; by the first quarter of 1942 this had risen by 4 percent to $1,540, figured at an annual rate. One-half of the Nation’s families in each period had smaller money incomes. The general nature of the increase in family income during the course of this war period is indicated by table 1. The latest pre-war period for which comparable figures are available is 1935-36. At that time, T a b l e 1.— Percentage Distribution of Aggregate Income and Aggregate Expenditure o f Consum ers, by M on ey Incom e, 1 9 3 5 -3 6 , 1941, and 1 9 4 2 1 [Preliminary national estimates including both urban and rural consumers2 ] Aggregate consumer money income All families3 Net money-income class 1935-36 $0 to $500-..................................... $500 to $1,000.................................. $1,000 to $1,500— ........................... $1,500 to $2,000....... ........................ $2,000 to $3,000-.............................. $3,000 to $5,000................................ $5,000 and over............................... Total............... ..................- 1942 1 1935-36 Aggregate consumer expenditure 1941 1941 1942 * 25 28 20 11 10 4 2 16 19 16 14 20 10 5 16 16 15 14 20 13 6 5 15 18 15 17 11 19 2 7 9 12 24 18 28 2 5 7 9 20 19 38 8 18 20 15 17 10 12 4 8 11 13 26 18 20 4 7 10 12 24 21 22 100 100 100 100 100 100 100 100 100 1941 19421 1935-36 1Annual rate for 1942 based on first quarter; does not include families with negative incomes. 2 Prepared by the Bureau of Labor Statistics and Bureau of Home Economics in cooperation; final esti mates based on comparisons with data available from other Government sources are in process of prepara tion by the two agencies. 2 Includes families of 2 or more persons and single consumers. 1 For the Bureau of Home Economics the combination was developed by Dorothy S. Brady under the general direction of Hazel K. Stiebeling. 2 The general procedures of interviewing, editing and tabulating of returns, and general definitions of terms are the same as those used in the Study of Consumer Purchases in 1935-36. (See appendixes to Bureau of Labor Statistics Bulletins 642 to 649, inclusive, or to Bureau of Home Economics Bulletins from the Study of Consumer Purchases). Those data formed the basis of the three reports of the National Resources Com mittee entitled, “ Consumer Incomes in the United States" (1938); “ Consumer Expenditures in the United States" (1939); and “ Family Expenditures in the United States" (1941). In the present report families have been classified'according to their money incomes, rather than their “ total incomes" as defined in 1935-36, since it is the flow of money funds in the Nation’s markets which is most important to an under standing of civilian spending and saving, and inflation. Data on “ total incomes" (money plus income in kind) are also presented on a more inclusive basis than in the l9ZoL studies. The sampling of the present 36 survey is entirely different from the 1935-36 surveys and was designed for the primary purpose of yielding national estimates. It is discussed, for city families, in the appendix which appears in Bureau of Labor Statistics Bulletin No. 724 (the reprint of the article in the September 1942 Monthly Labor Review with additional data). 3 The term “ family" or “ consumer" is used to include both families of two or more persons and single consigners (persons who did not pool their incomes or expenditures with anyone else). About six-sevenths of the Nation’s consumers were composed of families of two or more persons and about one-seventh of single consumers. Single consumers were predominant at lower income levels and families at higher levels, though some of each were found at all income levels. PROPORTION OF NATIONAL AGGREGATE CONSUMER INCOME AND EXPENDITURE RECEIVED AND SPENT 1935-36,1941, AND 1942 SPENDING AND SAVING OF FAMILIES IN WARTIM E BY SELECTED INCOME GROUPS Ip LABOR STATISTICS CO 4 SPENDING AND SAVING OF FAMILIES IN WARTIME the greater part of American families were receiving incomes con centrated at the lower levels. More than half had cash incomes below $1,000, compared with somewhat over a third in 1941; almost three-fourths had cash incomes below $1,500, compared with one-half in 1941; and less than one-sixth had incomes above $2,000, compared with more than one-third in 1941. Incomes as a whole again moved upward from 1941 to the first quarter of 1942 despite the normal seasonal low in cash farm incomes in the first quarter of the year (see chart 1). Because, with rising incomes, there were fewer families whose in comes were below the $2,000 level in 1941 and 1942, this group of families received proportionately less of aggregate national income than in 1935-36. Families whose incomes were above the $3,000 level, on the other hand, were more numerous and as a group they received and spent a greater part of the national total. The fact that there were fewer low-income families in 1941 and 1942 means that many who in earlier years were in those brackets have now moved up into higher-income brackets. The consequent decreased share of national income received by the low-income group has sometimes been wrongly interpreted as* proof that such families have not benefited from the general increase in income, or that this decreased share is inconsistent with the sharp rise that has occurred in wage and salary income. It should be clear, however, that insofar as low-income families have shared in the rise in income there are bound to be fewer of them. Implications for fiscal policy.— These changes in income have impor tant implications for fiscal policy and for the entire question of price control. The heart of the inflation problem is the pressure of an increasing volume of expenditures on a constant or decreasing supply of consumer goods. In the first quarter of 1942, however, over twofifths of the purchasing power of American families was in the hands of families with incomes above $3,000, with little more than one-tenth in the hands of those with present incomes below $1,000. To the extent that incomes continue to rise, the bulk of the purchasing power will become concentrated in what were considered middle and high money income groups in the pre-war period.4 Farm and N onfarm Incom e Both farm and nonfarm families 5 have shared in these general increases in income. Thus from 1935-36 to 1941, 18 percent of all nonfarm families shifted from the class with income under $1,000 to the higher income classes; the corresponding percentage for farm families was 22 (table 2). The median money income for nonfarm families rose from $1,214 to $1,875, for farm families from $494 to $860. One-seventh of all farm families had incomes above $2,000 in 1941 as compared with only one-twentieth in 1935-36. The somewhat greater movement of farm families than of nonfarm families from the 4 It should not be assumed that the distribution of all families by total money income will correspond in any but a rough sense to the distribution of income tax returns by net taxable money income. Aside from the fact that the money income of a family will usually be higher than its net taxable income, the income receiving units are quite different. A “ family” is here defined as a group of persons sharing income and expenditure. The income tax return covers the combined incomes of husband and wife only when they file a joint return but never includes separate incomes received by other members of the family. Such members file separate returns if their income is above the exemption limit, and many will not file if the income is below it. Separate returns and community property returns of husband and wife also contribute to the differences in concept. 5 In this paragraph “ families” is used to mean only families of 2 or more persons, since comparable data for 1935-36 are available only for this group. 5 SPENDING AND SAVING OF FAMILIES IN WARTIM E lowest money-income levels to higher levels in this period is explained, at least in part, by the differing sources of income of the two groups. The incomes of farm families even at the lowest levels are largely dependent upon the nature of the market for agricultural products. Increased demand and higher prices for their products have shifted a relatively larger number of farm families to higher income levels. In nonfarm areas, however, at the lowest income levels there is a much larger number of persons who are dependent upon pensions and other forms of fixed income, whose incomes are unaffected by general increases in employment and earnings, and not at all by higher prices, since they have no products to sell. T a b l e 2.— Percentage Distribution o f Farm and N on farm 1 Fam ilies,2 by M on ey Incom e, 1 9 3 5 -3 6 , 1941 , and 1942 « [Preliminary national estimates 4 ] 1935-36 1941 19421 3 * Net money income class Nonfarm Farm $0 to $500..................................................... $500 to $1,000............................................... $1,000 to $1,500............................................ $1,500 to $2.000............................................ $2,000 to $3,000............................................. $3,000 to $5,000............................................. $5,000 and over............................................ 14 26 23 15 13 6 3 51 28 11 5 3 1 1 Total.................................................. 100 Nonfarm 100 Nonfarm Farm* 32 25 15 11 9 fi f 6\ 8 14 16 16 27 13 \ 6 / 100 100 9 13 14 16 24 16 \ 8 / 100 Farm * 34 16 10 8 7 7 7 100 * Includes city families and rural nonfarm families. 3 Includes only families of two or more persons. * Annual rate for 1942 based on first quarter. 4Prepared by the Bureau of Labor Statistics and the Bureau of Home Economics in cooperation. * The percentage of families having net losses may be derived by subtracting the sum of the distribu tion shown from 100. Notwithstanding the recent increases in farm incomes, farm families in 1 9 4 1 were concentrated at the lower-cash-income levels to a greater extent than were nonfarm families. It does not follow, however, that differences in the kind and quantity of goods and services available to the two groups are as marked. Income in kind (such as the value of home-grown food, housing of home owners, free fuel and other goods received without direct money payment) is of considerably greater importance in farm than in nonfarm areas. Thus, at every income level the average value of income in kind was much greater than for T a b l e 3.— Average Yearly Incom e in K in d o f Farm and Nonfarm 1 Fam ilies,2 by M on ey-In com e Class, 1941 [Preliminary national estimates3 ] Net money-income class Nonfarm $0 to $500................................................................... $500 to $1,000......................................................... . $1,000 to $1,500........................................................... $1,500 to $2,000........................................................... $2,000 to $3,0C0-......................................................... $3,000 to $5,000......................................................... . $5,000 and over............ .......................................... . $163 172 150 162 176 213 358 Median family4......... .............................................. 157 Farm i ? $417 529 557 602 603 71Q Ilv 530 1Includes city families and rural nonfarm families. 3Includes only families of 2 or more persons. 3 Prepared by the Bureau of Labor Statistics and the Bureau of Home Economics in cooperation. 4 These averages represent the income in kind of the families with the incomes below which half the non farm and farm families and single consumers in the Nation fall, respectively. SPENDING AND SAVING OF FAMILIES IN WARTIME 6 nonfarm families (table 3). If the money value of such goods is added to actual money income, the total income of the median farm fam ily6 is increased by 70 percent, that of the median nonfarm family6 by less than 10 percent. Hence, if the value of money plus income in kind is taken as the measure, differences in well-being between farm and nonfarm families are considerably less marked than a comparison of money incomes alone would indicate. Living-Cost Changes The changes in income must be viewed against a background of rising living costs. Both the Bureau of Labor Statistics index of the cost of living to city workers and the Bureau of Agricultural Economics index of the prices of goods farmers buy for family living rose 7 percent from 1935-36 to the year 1941. The cost-of-living index for city workers rose another 8 percent from the average of 1941 to the average of the first 3 months of 1942, and the cost-of-living index for farmers rose 13 percent over the same period. In consequence the increases in money income discussed in the preceding sections have resulted in smaller increases in real income. The changes in ex penditures and savings discussed in the following sections must also be viewed against this background of rising living costs, although higher living costs in themselves do not explain the changes that occurred. Thus the average family with an income increase of 4 percent from 1941 to the first quarter of 1942 spent less than 2 percent more for family living—not enough to keep up with rising living costs. This meant that consumers were buying fewer or were using cheaper goods in the first quarter of 1942 than in 1941. At the same time 65 percent of the rise in money income of the typical (median) family with income around $1,500 between 1941 and the first quarter of 1942 went to enlarge its savings, which increased 47 percent over 1941. Use o f Increased Incom e The year 1941 was a period in which the production of war goods and the production of consumer goods were expanding simultaneously. More consumer goods were being turned out than at any other time in history. Increasing incomes in that year resulted in sharply in creased purchases of many types of goods. This was true not only in the aggregate for the Nation but at each income level above $1,500. By the first 3 months of 1942, however, the first effects of the curtail ment in the production of consumer goods on consumer spending had already become apparent. The attack on Pearl Harbor had inten sified the Nation’s fighting mood. Conversion of the automobile industry was under way. Personal taxes were higher, but they still took less than 1 percent of income at the middle income level. De spite higher living costs and taxes, savings increased markedly for all families except for those which had had a recent decline in income. Expenditures for current living were lower (table 4).• • Sec footnote 3, p. 2. 7 SPEEDING AND SAVING OF FAMILIES IN W ARTIME T able 4.— Average Yearly Expenditure, Savings, and Taxes p er F a m i l y b y M on eyIncom e Class, 193 5 -3 6 , 1941, anrf 1942 2 (Preliminary national estimates including both urban and rural consumers3 ] Net money-income class Money expenditure for family living Net saving or deficit Taxes, gifts and contribu tions to persons outside economic family 1935-36 1941 19423 1935-36 1941 1942* 1935-36 $0 to $600......................... $500 to $1,000.................... $1,000 to $1,500................. $1,500 to $2,000................. $2,000 to $3.000................. $3,000 to $5,000................. $5,000 and over................ $394 747 1,154 1, 542 2,038 2,778 5,888 $370 738 1,155 1,576 2,214 3,086 6,758 $424 784 1,160 1,524 2,012 2,880 6,116 -$115 -3 7 32 112 289 724 4,420 —$87 -2 0 55 116 166 489 3,724 -$172 -6 4 52 180 336 644 7,936 $10 31 54 78 121 228 1,244 $17 29 48 71 112 190 1,228 $16 24 44 72 128 232 1,480 Median family4.............. 914 1,361 1,380 87 128 40 60 60 -9 1941 19423 i Includes families of 2 or more persons and single consumers. 3 Annual rate for 1942 based on first quarter. 8 Prepared by the Bureau of Labor Statistics and the Bureau of Home Economics in cooperation. 4 These averages represent the expenditures of the family with the income below which half of the families and single consumers in the Nation fall. Definition of Savings The sayings figure as calculated in this survey measures net change in assets and liabilities for each family. It does not measure the total amount of assets on hand in the form of bank deposits, cash, etc. It includes net reductions in outstanding debts, both installment and open-book credit, amounts owing to banks, insurance companies, etc. It also includes payments of life-insurance premiums, payments on principal on mortgages on the family home or other real estate owned by the family, purchases of Government or other bonds or stocks, and other investments. Advance payments on Federal income tax, in ex cess of amounts due in the first quarter of 1942, were treated as a part of savings for that period. Increases in liabilities, on the other hand, such as net increases in borrowings or amounts owed on installment accounts were subtracted, thus reducing the net savings figure. Like wise, drawing on past savings, such as net reductions in bank accounts or cashing of bonds or other securities, constitutes a deduction from the net savings figure. Each family or single consumer interviewed gave a statement of the increase or decrease over the period in each class of assets and liabilities, and the net reckoning of these items determined how much he was “ in the red” or “ in the black” for the period. Changes in Savings and Expenditures Savings by families with incomes below $2,000 rose markedly from 1935-36 to 1941, but fell for families with higher incomes. In 1935-36 many of the low-income families had suffered sharp decreases in income and had not cut their scale of living accordingly. In 1941 there were'considerably fewer such families in the low-income brackets. The lower savings in 1941 by families with incomes over $2,000 sug gests a large amount of anticipatory buying at that time. In the first quarter of 1942, compared with the year 1941, savings for all but the lowest income families rose markedly. Thus savings by families with incomes between $1,500 and $2,000 were 50 percent greater, and in the next higher bracket more than doubled. 492091°—42----- 2 8 SPENDING AND SAVING OF FAMILIES IN WARTIME The expenditures on automobiles (purchase and operation) and on furnishings and equipment may be used to illustrate the differences in the way in which war-time conditions affected the spending of in creased incomes as between 1941 and the first quarter of 1942. These two types of purchases account for a large part of all consumer durable goods. At every level of income 1941 expenditures for each of these groups was considerably higher than in 1935-36 (table 5). Thus, families with incomes between $1,500 and $2,000 were spending onefifth more for automobiles and four-fifths more for housefurnishings and equipment. By the first quarter of 1942 despite a continuing increase in income, families had cut their buying of furnishings and automobiles. This was true for all but the lowest income level. For families with incomes above $1,000 the drop in automobile expenditure was sufficient to carry it below even the 1935-36 rate. Part of this drop is of course explained by the normal seasonal decrease in ex penditures for automobile operation in the winter, but most of it was due to the unavailability of new cars and tires and even certain types of parts. The drop in purchase of furniture and equipment, although marked, still left the first quarter expenditures above the 1935-36 rate. T a b l e 5 .— Average Yearly Expenditure per F a m ily1 fo r Autom obiles, Furnishings, Clothing, and Food , by Selected M oney-Incom e Classes, 1 93 5 -3 6 , 1941 , and 1942 [Preliminary national estimates including both urban and rural consumers *] Net money-income class, and year $500 to $1,000: 1935-36......................................................................... 1941....... .................................................................... 1942 3 ....... ................................................................... $1,500 to $2,000: 1935-36........................................................................ 1941 ......................................................................... 1942 3........................................................................... $3,000 to $5,000: 1935-36........................................................................ 1941............................................................................ . 1942*............................................................................ Automo bile Household furnish purchase, operation, ings and and main equipment tenance Clothing Food $39 58 48 $19 35 28 $84 85 76 $269 271 304 138 165 104 55 99 64 173 183 168 494 514 536 307 364 240 96 188 164 365 402 380 750 906 908 i Includes families of 2 or more persons and single consumers. * Prepared by the Bureau of Labor Statistics and the Bureau of Home Economics in cooperation. 3 Annual rate for 1942 based on first quarter. The change in expenditures for these two important groups of durable goods between 1935-36 and 1941 is typical of the way in which families spend money for all durable goods of this kind. Such expenditures are dependent not only upon the amount of income in the possession of consumers, but also upon whether income is increas ing or decreasing. In times when income is increasing and the future looks bright, a given amount of income will usually give rise to a considerably higher volume of expenditures on durable goods than it will when incomes are decreasing, the future is uncertain, and purchases can be postponed.7 Since incomes were higher and increas ing more rapidly in 1941 than in 1935-36, larger expenditures for durable goods were to be expected. 7 Other analyses of changes in expenditures and savings with changes in income show the same tendency. (See Factors Governing Changes in Domestic Automobile Demand: The Dynamics of Automobile De mand (New York, 1939), by C. F. Roos and Victor von Szeliski; and Statistical Investigations of Saving, Consumption and Investment, with Bibliographical Footnotes, by Mordecai Ezekiel, in American Eco nomic Review, March and June 1942 (pp. 22-49,272-307). SPENDING AND SAVING OF FAMILIES IN WARTIME 9 In the first quarter of 1942, of course, the situation was entirely different. Shortages of materials, conversion to war production, and tightening of credit terms reversed the trend of buying which might have been expected to follow rising incomes and there was a marked decline in buying of consumers durable equipment. The very high rate of spending for family living in 1941 as compared with 1935-36 and the sharp drop in the first quarter of 1942 suggest the operation of an additional factor in these markets: a considerable amount of anticipatory buying in 1941. It therefore seems likely that many families, especially those with incomes above $1,500 in 1941, began 1942 with considerable stocks on hand to face the cur tailed production of durable and semidurable goods of the war years. Part of the funds thus released in the first quarter of 1942 by the drop in expenditure for durable goods has been diverted to other types of goods for which prices have been rising. Food expenditures in particular have been affected by rising prices, so that in 1942 they accounted for a larger percent of income at each income level up to $2,000 than in 1941. The increase in food expenditures, however, was considerably less than the rise in food prices, suggesting that families were buying less food or cheaper food in 1942. Expenditures also were somewhat higher for housing and medical care. The higher medicalcare expense in the winter of 1942 reflects a normal seasonal difference. Housing expenditures were higher partly because of greater fuel re quirements in winter but also because of increased rents in defense areas and some rise in fuel prices. The greater part of the funds released by decreases in durable-goods expenditure in the first quarter of 1942, however, has appeared in increased saving. Savings Outlook fo r Remainder o f 1942 Several factors affecting the level of savings in the latter part of 1942 were not operating in the first quarter of the year, although it is difficult at this time to assess the net effect of these forces. Some of the forces producing the high level from January through March will not affect the situation in later months. Other new factors making for higher savings have already appeared. The decline in volume of many consumer goods available (if ac companied by price-control programs effective enough to prevent price spirals or “ black markets” and rationing programs widespread enough to limit rising expenditures for substitutes) will leave many purchasers with .no alternative except to save more. The Depart ment of Commerce index of total sales of consumer goods showed a continuous drop from January to June, notwithstanding higher prices. The trend was reversed in July with a sharp upturn. A second im portant element contributing toward increased savings is the patriotic appeal for war-bond purchases. The Treasury campaign for volun tary deductions of 10 percent of pay envelopes and pay checks got under way in the second quarter of 1942. If these appeals do not prove adequate to meet the situation, there remains the possibility that steps will be taken toward compulsory pay-roll deductions. Still another factor operating to increase savings, at least for a period, is the new governmental regulation regarding charge accounts. Beginning July 10, 1942, stores may no longer furnish credit to 10 SPENDING AND SAVING OF FAMILIES IN WARTIME customers whose accounts for the second month previous are not paid in full. This will mean that those persons who had substantial amounts owing on charge accounts will be paying off balances during the latter part of the year to an extent probably greater than the amount of new charges they can incur. During the period that unpaid balances remain, this factor will operate to increase savings. By far the largest part of the increase in savings must be attributed to larger savings by individual families, unexplained by any change in their economic circumstances. Thus city families whose incomes were approximately the same in both periods were nevertheless saving at a considerably higher rate in the first quarter of 1942 than in the year 1941. Although any definitive statement on the reasons for this increase in savings must await a detailed analysis of changes in the various components of savings, it appears likely that a net re duction in the volume of outstanding consumer debt was a prominent cause. Thus, virtually all of the increase in savings between 1941 and the first quarter of 1942, as estimated by the Securities and Exchange Commission, is accounted for by changes in the volume of outstanding debt. The Department of Commerce estimates that short-term con sumer debt will be reduced by a total of $3,500,000,000 in 1942 be cause of credit restrictions and the curtailment of the production of consumer durable goods. In the first quarter of 1942 this reduction was due primarily to a decrease in new commitments on installment purchases, rather than to an increase in gross repayments of consumer debts. For example, if a family in 1941 paid off $500 on old debts but incurred an increased obligation of $800 for a new car and had no other changes in debts or savings, it would have had a $300 deficit for the year. If in the first quarter of 1942 the same family paid off another $125 on old debts (an annual rate of $500) but did not incur new obligations for a car or any other purpose, it would have been saving at a rate of $500 per year. Thus, if old debts were being repaid at a normal rate and new debts not being incurred to any substantial extent because of the un availability of many durable consumer goods and the tightening up of installment credit, the volume of outstanding debt would be expected to decline and net consumer savings to increase by the same amount. As outstanding debt is curtailed, new funds will be released for other uses. It is by no means certain that they will necessarily be used for saving. A second factor in the increase in savings in 1942 is that increases in income are not immediately accompanied by extensive changes in the level of living (see table 6). For example, a family may continue for some time to live in the same house and wear much the same kind of clothing. Increases in income consequently are at first often devoted largelv to increased savings. Although the difference in savings between families having increased and unchanged incomes is not so large as has sometimes been claimed, it is a factor. As soon as families have become accustomed to their new level of income, however, it is entirely possible that their level of savings will tend to be reduced and be more nearly like that of families in their particular income bracket whose income was not changed. Since it is unlikely that the increases in income will continue at the same pace that they have in the past 2 years, the number of families living on incomes to which they have adjusted their expenditures may be expected to increase. SPENDING AND SAVING OF FAMILIES IN WARTIM E 11 T a ble 6.— Average Yearly Expenditure and Savings fo r C ity Fam ilies,1 b y Incom e Change From 1941 to 1 9 4 2 2 Consumers whose incomes in 1942— Money-income class in 19423 Changed In De De Changed In creased less creased creased less creased 5 percent than 5 5 percent 5 percent than 5 5 percent or more percent or more or more percent or more Expenditure for family living $0 to $1,000................................................... $1,000 to $1,500............................................. $1,500 to $2,000............................................ $2,000 to $3,000............................................ $3,000 and over.:......................................... $802 1,390 1,760 2,316 4,176 $618 1,214 1,594 2,080 3,614 $606 1,153 1,536 2,094 3,607 Savings -$337 -181 -8 1 0 143 —$35 34 126 242 1,228 —$15 62 157 290 1,059 1 Includes families of 2 or more persons and single consumers. 2 Annual rate for 1942 based on first quarter. In addition to uncertainty as to whether the first-quarter level of savings8 has actually continued since that time it should be noted that while the 1942 level was above that of 1941 for the income group over $1,500, in general it did not exceed the 1935-36 levels of saving to any significant extent. Farm and N onfarm Saving and Spending As indicated in an earlier section of this article, farm families in general have smaller cash incomes, and much more income in kind, than city families. At each level of money income their expenditures reflect profoundly different ways of life. These differences in expenditure are much more basic than are differences in spending between urban families living in different regions, or even between urban and rural nonfarm families. Such differences are especially important at this time because they mean that the inflationary effects of income in the possession of a farm family may be quite different from the effects of an equal income in that of a nonfarm family. Most pronounced are the differences in the amount of saving and total expenditure at each income level in 1941. Thus, the typical (median) farm family6 with a money income of only $750 was saving as much as the typical (median) nonfarm family with an income more than twice that amount ($1,640). At the income level of $1,500$2,000, nonfarm families were saving an average of $50 in 1941, farm families over $500. In general, at the lowest income levels, total expenditures of farm and nonfarm families were equal, but as income increased farm families spent a considerably smaller percent of each dollar of additional income than did nonfarm families. Thus, the actual expenditures of farm families with incomes over $3,000 were only half those of nonfarm families with the same incomes and their savings were proportionately greater (chart 2). There are two main reasons for this great difference. The first is the importance of home-produced food and other goods and services received in kind by farm families (see table 3), which means they have proportionately more money left after their basic requirements for* * See footnote 3, p. 2. * Another factor which may lead to a somewhat lower level of savings, a relatively small one, is the treatment of advance payment of Federal income taxes in calculating quarterly savings (see p. 7). This constituent of savings will not be present in all the later quarters of 1942. Unless compensating increases in other forms of saving occur, therefore, the volume of savings may be expected to decline on this account. .... .................... ......................................................................................................... to TOTAL EXPENDITURE FOR CURRENT LIVING FARM AND NONFARM FAMILIES AT DIFFERENT INCOME LEVELS SPEEDING AND SAVING OF FAMILIES IN WARTIME 0 500 1000 1500 2000 2500 3000 3500 NET MONEY INCOME IN DOLLARS UNITED STATES DEPARTMENT OP LA80R BUREAU OP LABOR STATISTICS 4000 4 5 00 on 5000 5 5 00 6000 loan* BASED PRELIMINARY ESTIMA1£S PREPARED BY THE BUREAU Of LABOR STATISTICS AMO THE BUREAU OF HOME ECONOMICS IN COOPERATION SPENDING AND SAVING OF FAMILIES IN WARTIM E C O 14 SPENDING AND SAVING OF FAMILIES IN WARTIME living have been met. Secondly, the fact that the farm family is dependent upon farm income to sustain the business of farming means that the urge to pay off the mortgage or to invest in land and equip ment is very strong among farm families, often at the expense of the family’s enjoyment of comforts.9 There are also important differences in farm and nonfarm spending for different types of goods and services. The two groups of expendi tures for which farm families spent considerably less than nonfarm families were food and housing. Requirements for both these groups can be satisfied by the use of home-grown food and of the farm home with only small money expenditures. At money-income levels below $1,500 the differences were notable, and were even larger for housing than for food. Since most farmers either were home owners or were farm tenants who had the use of a house at little or no addi tional cash rental, their cash expenditures for housing were much below those of city families which pay rent. Other goods and services for which farm families spent somewhat less than nonfarm families, at practically all income levels, were household operation, transporta tion other than by automobile, recreation, tobacco, and reading. Virtually all of these differences can be explained by the very different requirements of farm and nonfarm families for these services. Despite the low level of total farm family expenditures in cash, their expenditures for furnishings and home equipment were above nonfarm expenditures at all incomes below $3,000. Farm houses are almost never rented furnished, and tend to be larger than city homes. Medical-care expenses of farmers were also greater at all incomes below $3,000. Expenditures for the family use of a car were higher for all incomes below $2,000. Automobiles are extremely important to farm families because of their use for farm business as well as for family transportation. (Only the portion of automobile expense chargeable to nonbusiness use of the car is included in these figures, however.) At the higher-income brackets farm families spent less than non farm families for all categories of expenditure. For several categories, this was just the opposite of what was true at low incomes. Thus, as shown in chart 3, farm family expenditures for clothing were higher up to about the $1,750 level, at which point they were equaled, and at higher levels surpassed by the corresponding expenditures of nonfarm families. The same thing was true for furnishings and home equip ment except that the change came at about $2,750. In general, for each category, expenditures of farm families changed less sharply from one income to the next than did those of nonfarm families.1 0 Much of this difference in spending may be explained by the presence of a large number of single consumers in the lower-income classes in nonfarm areas, as compared with a negligible number at all income levels in farm areas. 9The income and savings figures shown in this report for farm families (as well as for nonfarm) are all net family figures, excluding gross farm business transactions. However, if a portion of net family income is invested in the farm, this properly appears as a form of family saving. 1 It will be noted that the steepness of the curves in chart 3 is greater at every income level for nonfarm 0 than for farm families. This suggests that a greater percent of each increased dollar received by nonfarm families would be spent for furnishings or clothing than if it were received by farm families. This would be true if income alone determined the shape of these curves. To the extent, however, that they are also explained by varying proportions of single consumers, at different income levels the difference in percent of increased income which would be spent by nonfarm families for furnishings and equipment as compared with farm families would be less. SPENDING AND SAVING OF FAMILIES IN WARTIME 15 The following tables prepared by the Bureau of Labor Statistics of the United States Department of Labor, and the Bureau of Home Economics of the United States Department of Agriculture present estimates of the average expenditures and savings of American con sumers by money-income class for the year 1941 and for the first quarter of 1942. The estimates are preliminary, especially for the income class above $5,000. Final estimates are in process of prepar ation by the two agencies. The present estimates provide the best available approximations based on current spending and saving pat terns, and are presented at this time in response to many requests for over-all national estimates required for policy decisions which must be made without delay. Figures for the median-income consum er unit have been used to illustrate the over-all pattern rather than an arithmetic average of all income classes. This was done because the median, the income below which half the consumer units fall, is less apt to be affected by final revisions in the averages for any income class. In making comparisons between these prelimi nary national estimates and national aggregates from other sources, important differences of concept and definition need to be borne in mind. T a b l e 7.— Incom e and Outlay,1 American Fam ilies and Singh Consumers Average money expenditures for— Average net income Money In kind Total Family living Gifts and contri butions Personal taxes $1 1 3 6 12 25 537 4 —$87 -2 0 55 116 166 489 3,724 87 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 -8 0 -3 8 19 50 117 386 3, 325 46 -9 9 41 256 526 797 3,463 45 Net money income Gifts and contri butions Personal taxes 128.0 99.6 93.1 91.0 90.4 82.7 58.5 91.9 5.5 3.8 3.6 3.8 4.1 4.4 6.0 3.6 0.3 .1 .2 .3 .5 .7 4.6 .3 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 122.7 101.5 96. 5 94.2 92.4 85.3 61.6 94.6 5.3 3.8 3.5 3.8 4.2 4. 5 6.3 3.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 138.9 94.4 75.1 70.6 64.7 35.9 94.7 5.6 3.8 4.4 3.3 3.1 2.7 3.9 Family living Average net saving or deficit 12 MONTHS, 1941 All American families and single consumers Net money income class: $0 to $500 ....................................... - ................ $500 to $1,000 .......................................................... $1,000 to $1,500......................................................... $1,500 to $2,000................................. *..................... $2,000 to $3,000........................................................ $3,000 to $5,000-......................- ............................... $5,000 and over........................................................ Median consumer un it2 .............................................. Nonfarm families and single consumers Net money income class: $0 to $500 ................... - .................................... $500 to $1,000.......................................................... $1,000 to $1,500......................................................... $1,500 to $2,000..... ................................................... $2,000 to $3,000........... ............................................. $3,000 to $5,000................................ ....................... $5,000 and over—.................................. - ................ Median consumer u n it2..........- ..........- ..................... Farm families and single consu mers Net money income class: $0 to $500 -- ____________ _________ $500 to $1,000 _ ....... ................................... $1,000 to $1,500—.................................................... $1,500 to $2,000-..................................................... $2,000 to $3,000....................................................... $3,000 and over............................. - ........................ Median consumer u n it2. . ----------------- ----------------- $289 741 1,240 1,732 2,448 3,730 11, 552 1, 481 $256 253 212 223 207 249 389 211 $545 994 1, 452 1,955 2,655 3,979 11,941 1,692 $370 738 1,155 1, 576 2,214 3,086 6,758 1, 361 $16 28 45 65 100 165 691 54 300 742 1,243 1, 737 2,449 3,726 11, 696 1,641 163 172 150 162 176 213 358 157 463 914 1, 393 1,899 2, 625 3,939 12,054 1,798 368 753 1,199 1,636 2,264 3, 180 7, 199 1, 552 16 28 43 66 102 169 742 61 270 737 1,226 1,701 2,439 5,589 750 417 529 557 602 <0 33 719 530 687 1,266 1, 783 2,303 3.042 6,308 1,280 375 696 921 1, 201 1, 578 2,004 710 15 28 54 56 75 149 29 (3 ) 1 3 7 12 25 590 6 1 1 2 2 10 40 1 (3 ) .1 .2 .4 .5 .7 5.0 .4 .4 .1 .2 .1 .4 .7 (• > -30.1 —2.7 4.4 6. 7 6.8 13.1 32. 2 5.9 -26.7 —5.1 1.5 2.9 4.8 10.4 28.4 2.8 -36.7 5. 6 20.9 30.9 32. 7 62.0 6.0 SPENDING AND SAVING OF FAMILIES IN WARTIME Net money income Percentage of net money income for— Average net saving or deficit FIRST 3 MONTHS OF 1942 All American families and single consumers $67 183 310 433 610 932 3,764 $58 46 46 48 44 58 106 $125 229 356 481 654 990 3,870 $106 196 290 381 503 720 1,529 $3 5 9 14 22 33 144 $1 1 2 4 10 25 226 —$43 -1 6 13 45 84 161 1,984 100.0 100.0 100.0 100.0 100.0 100.0 100.0 158.2 107.1 93.5 88.0 82.5 77.3 40.6 4.5 2.7 2.9 3.2 3.6 3.5 3.8 1.5 .5 .6 .9 1.6 2.7 6.0 -64.2 -8 .7 4.2 10.4 13.8 17.3 52.7 Median consumer un iti..... ....................................... . 3 * 386 47 433 345 12 3 32 100.0 89.4 3.1 .8 8.3 73 183 311 434 609 930 3,946 42 35 36 40 39 50 108 115 218 347 474 648 980 4,054 100 200 298 387 518 751 1,809 9 15 22 34 197 2 4 10 26 320 -3 0 -21 5 37 69 126 1,803 100.0 100.0 100.0 100.0 100.0 100.0 100.0 137.0 109.3 95.8 89.2 85.1 80.8 45.8 4.1 2.7 2.9 3.5 3.6 3.7 5.0 .6 .9 1.6 2.8 8.1 -41.1 -11.5 1.6 8.5 11.3 13.5 45.7 435 40 475 387 15 4 37 100.0 89.0 3.4 .9 8.5 Net money income class: $0 to $125......... ................................ .................... $125 to $250............................................................ $250 to $375........................................................... . $375 to $500.......................................................... . $500 to $750........................................... ............... $750 and over.......................................................... 56 182 305 425 621 1,967 89 98 118 131 122 154 145 280 423 556 743 2,121 118 172 224 273 325 378 3 4 8 9 16 18 1 2 2 3 4 13 -6 8 9 68 120 307 1,557 100.0 100.0 100.0 100.0 100.0 100.0 210.7 94.5 73.4 64.2 52.3 19.2 5.4 2.2 2.6 2.1 2.6 .9 1.8 1.1 .7 .7 .6 .7 -121.4 4.9 22.3 28.2 49.4 79.2 Median consumer unit 2 ._............................................ 105 91 196 138 3 1 -3 8 100.0 131.4 2.9 1.0 -36.2 Nonfarm families and single consumers Net money income class: $0 to $125 ................................................... .......... $125 to $250.................. ........................................ $250 to $375................................. ........................ . $375 to $500............................. ............................... $500 to $750................................ ........................... $750 to $1,250.......................................................... $1,250 and over........................................ .............. Median consumer unit 3._...................................... . 3 (3 ) (3 ) (3 ) (3 ) Farm families and single consumers i The difference between income and expenditures plus savings is accounted for by minor discrepancies in figures furnished by families and in a few instances by nonincome funds, such as inheritances received by families. 2The averages on this line represent the income, expenditures, and savings of the consumer unit with the income below which half the families and single consumers in the Nation fall. 3$0.50 or less. SPENDING AND SAVING OF FAMILIES IN WARTIME Net money income class: $0 to $125................................................................ $125 to $250.............................................................. $250 to $375.......... .................................................. $375 to $500.................................................. .......... $500 to $750............................................................. $750 to $1,250......................................................... $1,250 and over............................. ........................ T a ble 8.— M on ey Expenditures fo r M ajor Categories o f Fam ily Living , Am erican Fam ilies and Single Consumers Total family living Food Transportation Hous Fur ing, House nishings For fuel, Person Medi Recre Tobac Read mal edu Cloth hold and light, ing ation co ing oper equip cation Auto Other al care cal care and mobile ment refrig ation eration Miscel laneous family expense 12 MONTHS, 1941 All American families and single consumers Net money income class: $0 to $600....... ...................................................... $500 to $1,000. ....................................................... $1,000 to $1,500.. .............................................. $1,500 to $2,000..................................................... $2,000 to $3,000....... ............................................ $3,000 to $5,000..................................................... $5,000 and over..................................................... $370 738 1,155 1,576 2,214 3,086 6,758 $143 271 399 514 695 906 1,586 $61 134 217 288 391 495 1,080 $17 30 47 63 97 147 621 $13 35 63 99 139 188 299 $45 85 132 183 270 402 904 $21 58 101 165 237 364 781 $5 11 19 28 41 59 239 $8 16 24 34 47 68 149 $27 41 62 81 105 151 310 $11 19 33 49 84 146 454 $9 18 27 35 47 65 88 $3 7 11 15 22 31 67 $2 4 6 8 16 36 126 $5 9 14 14 23 28 54 Median consumer un it1............................................ 1,361 457 253 55 80 156 130 23 29 72 41 31 13 7 14 Nonfarm families and single consumers Net money income class : $0 to $500-.-......................................................... $500 to $1,000 ........................................—........... $1,000 to $1,500 ................... ......... ...................... $1,500 to $2,000.............................. ...................... $2,000 to $3,000.............................. ...................... $3,000 to $5,000........................ ............................ $5,000 and over...................................................- 368 753 1,199 1,636 2,264 3,180 7,199 150 285 418 542 715 940 1,673 80 154 241 318 410 521 1,160 18 31 49 66 99 151 675 8 31 61 96 138 191 310 32 76 128 184 273 409 945 16 50 101 160 238 368 841 6 13 21 31 43 63 262 7 16 25 35 48 69 158 24 39 62 79 104 153 332 12 20 33 51 87 149 494 8 19 29 37 49 68 92 3 7 12 16 23 32 71 2 4 5 7 16 37 133 2 8 14 14 21 29 53 Median consumer u n it1............................................ 1,552 518 304 63 89 173 148 29 33 76 47 36 15 7 14 Farm families and single consumers Net money income class: $0 to $500--........................................................ $500 to $1,000...........................................- ........... $1,000 to $1,500..................................................... $1,500 to $2,000-.......................—.............- ......... $2,000 to $3,000..................................................... $3,000 and over.................................................... 375 696 921 1,201 1, 578 2,004 131 223 295 337 442 515 29 67 85 102 141 182 14 27 37 47 72 97 22 50 74 115 149 160 68 117 152 178 233 358 30 84 103 193 231 294 4 6 7 9 12 5 9 17 21 28 37 51 32 49 65 94 114 124 10 17 32 40 48 93 11 15 17 21 28 29 3 6 8 11 15 16 3 6 9 11 10 36 9 12 16 15 46 44 Median consumer un it1............................................ 710 229 68 28 51 119 85 6 17 50 18 15 6 6 12 SPENDING AND SAVING OF FAMILIES IN WARTIME Net money income 00 FIRST 3 MONTI All American families and single consumers Net money income class: $0 to $126.............................................................. $125 to $260........................................................... $250 to $375........................................................... $375 to $500.......................................................... $500 to $750........................................................... $750 to $1,250......... I........................................... $1,250 and over.................................................... $106 196 290 381 503 720 1, 529 $42 76 104 134 170 227 391 $18 39 60 77 97 121 267 $4 8 12 16 22 33 152 $4 7 12 16 21 41 71 Median consumer u n it1................................. ........ 345 122 71 14 15 Nonfarm families and single consumers Net money oncome class: $0 to $125.............................................................. $125 to $250....................................... ................... $250 to $375........................... ............ ................. $375 to $500......................................................... $500 to $750......................................................... $750 to $1,250.................................... .................. $1,250 and over......................................... ........... 100 200 298 387 518 751 1,809 41 80 108 136 175 236 437 22 44 64 82 102 128 334 4 8 12 17 23 35 208 3 6 11 16 21 41 81 Median consumer un it1..................................... ..... 387 136 82 17 16 Farm families and single consumers Net money income class: $0 to $125.............................................................. $125 to $250.......................................................... $250 to $375.......................................................... $375 to $500.......................................................... $500 to $750.......................................................... $750 and over....................................................... 118 172 224 273 325 378 45 56 75 94 113 126 11 17 23 27 3 '4 45 5 7 9 10 14 15 7 10 20 21 24 31 Median consumer un it1................................ .......... 138 49 14 6 8 1 The averages on this line represent the expenditures of the consumer unit with the income below which half of the families and single consumers in the Nation fall. IS OF 1942 $7 12 20 26 36 60 120 $2 4 6 8 9 14 29 $2 4 6 9 12 16 39 $9 12 16 22 29 42 73 $1 4 7 11 18 33 90 $2 4 7 9 12 15 18 $1 2 3 4 5 8 19 $1 1 2 2 5 9 31 $2 4 5 5 5 6 10 37 24 7. 8 19 9 8 4 2 5 8 17 29 42 63 99 253 5 10 20 24 36 62 124 2 4 7 8 10 15 36 2 4 6 9 12 17 47 7 12 17 22 30 44 81 1 4 7 11 19 35 113 2 4 7 9 12 16 17 1 2 3 4 5 8 24 1 2 2 5 9 42 2 4 5 5 5 6 12 42 24 8 9 22 11 9 4 2 5 16 28 34 39 44 46 10 22 24 31 38 45 1 2 2 3 3 4 3 4 6 7 8 10 11 12 14 18 20 22 2 4 5 9 11 13 3 4 5 5 6 7 1 2 2 3 3 4 1 1 2 3 3 5 2 3 3 3 4 5 21 15 1 3 11 3 3 1 1 2 2$0.50 or less. (>) SPENDING AND SAVING OF FAMILIES IN WARTIM E $11 19 30 42 62 95 219 CO T a b l e 8 - A . — Percentage o f M on ey Incom e For M ajor Categories o f Fam ily Living, Am erican Fam ilies and Single Consumers Net money income Food Transportation Hous Fur ing, House nishings fuel, Person Medi Recre Tobac hold Cloth and light, co oper equip ing Auto Other al care cal care ation and ation refrig mobile ment eration For Read mal edu ing cation Miscel laneous family expense 12 MONTHS, 1941 All American families and single consumers Net money income class: $0 to $500....... ...................................................... $500 to $1,000...................................................... $1,000 to $1,500..................................................... $1,500 to $2,000..................................................... $2,000 to $3,000..................................................... $3,000 to $5,000..................................................... $5,000 and over................... ............................... 128.0 99.6 93.1 91.0 90.4 82.7 58.5 49.4 36.6 32.2 29.7 28.3 24.3 13.7 21.1 18.1 17.5 16.6 16.0 13.3 9.3 5.9 4.0 3.8 3.6 4.0 3.9 5.4 4.5 4.7 5.1 5.7 5.7 5.0 2.6 15.6 11.5 10.6 10.6 11.0 10.8 7.8 7.3 7.9 8.1 9.5 9.7 9.8 6.7 1.7 1.5 1.5 1.6 1.7 1.6 2.1 2.8 2.2 1.9 2.0 1.9 1.8 1.3 9.4 5.5 5.0 4.7 4.3 4.0 2.7 3.8 2.6 2.7 2.8 3.4 3.9 3.9 3.1 2.4 2.2 2.0 1.9 1.7 .8 1.0 .9 .9 .9 .9 .8 .6 0.7 .5 .5 .5 .7 1.0 1.1 1.7 1.2 1.1 .8 .9 .8 .5 Median consumer un it1........................................... 91.9 30.8 17.0 3.7 5.4 10.5 8.8 1.6 2.0 4.9 2.8 2.1 .9 .5 .9 Net money income class: $0 to $500.............................................................. $500 to $1,000........................................................ $1,000 to $1,500..................................................... $1,500 to $2,000..................................................... $2,000 to $3,000..................................................... $3,000 to $5,000..................................................... $5,000 and over.................................................... 122.7 101.5 96.5 94.2 92.4 85.3 61.6 50.0 38.4 33.7 31.3 29.2 25.2 14.3 26.6 20.7 19.4 18.4 16.7 13.9 9.9 6.0 4.2 3.9 3.8 4.0 4.1 5.8 2.7 4.2 4.9 5.5 5.6 5.1 2.7 10.7 10.2 10.3 10.6 11.1 10.9 8.1 5.3 6.7 8.1 9.2 9.7 9.9 7.2 2.0 1.8 1.7 1.8 1.8 1.7 2.2 2.3 2.2 2.0 2.0 2.0 1.9 1.4 8.0 5.3 5.0 4.5 4.2 4.1 2.8 4.0 2.7 2.7 2.9 3.6 4.0 4.2 2.7 2.6 2.3 2.1 2.0 1.8 .8 1.0 .9 1.0 .9 .9 .9 .6 .7 .5 .4 .4 .7 1.0 1.1 .7 1.1 1.1 .8 .9 .8 .5 Median consumer u n it1................................ — — 94.6 31.6 18.6 3.8 5.4 10.5 9.0 1.8 2.0 4.6 2.9 2.2 .9 .4 .9 Net money income class: $0 to $500____ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 to $1,000........................................................ $1,000 to $1,500............. ....................................... $1,500 to $2,000..................................................... $2,000 to $3,000..................................................... $3,000 and over____ ____________ ___________ 138.9 94.4 75.1 70.6 64.7 35.9 48.5 30.3 24.1 19.8 18.1 9.2 10.8 9.1 6.9 6.0 5.7 3.3 5.2 3.7 3.0 2.8 3.0 1.7 8.1 6.8 6.0 6.8 6.1 2.9 25.2 15.9 12.4 10.5 9.6 6.4 11.1 11.4 8.4 11.4 9.5 5.3 1.5 .8 .6 .5 .5 .1 3.3 2.3 1.7 1.6 1.5 .9 11.9 6.6 5.3 5.5 4.7 2.2 3.7 2.3 2.6 2.4 2.0 1.7 4.1 2.0 1.4 1.2 1.1 .5 1.1 .8 .7 .6 .6 .3 1.1 .8 .7 .6 .4 .6 3.3 1.6 1.3 .9 1.9 .8 Median consumer un it1_________ •94.7 30.5 9.1 3.7 6.8 15.9 11.3 .8 2.3 6.7 2.4 2.0 .8 .8 1.6 Nonfarm families and single consumers Farm families and single consumers _____________ SPENDING AND SAVING OF FAMILIES IN W ARTIME Total family living FIRST 3 MONTHS OF 111 2 4 All American families and single consumers 158.2 107.1 93.5 88.0 82.5 77.3 40.6 62.6 41.5 33.5 30.9 27.8 24.4 10.4 26.9 21.3 19.3 17.8 15.9 13.0 7.1 6.0 4.4 3.9 3.7 3.6 3.5 4.0 6.0 3.8 3.9 3.7 3.4 4.4 1.9 16.4 10.3 9.6 9.7 10.2 10.2 5.8 10.4 6.6 6.5 6.0 5.9 6.5 3.2 3.0 2.2 1.9 1.8 1.5 1.5 .8 3.0 2.2 1.9 2.1 2.0 1.7 1.0 13.4 6.6 5.2 5.1 4.8 4.5 1.9 1.5 2.2 2.3 2.5 3.0 3.5 2.4 3.0 2.2 2.3 2.1 2.0 1.6 .5 1.5 1.1 1.0 .9 .8 .9 .5 1.5 .5 .6 .5 .8 1.0 .8 3.0 2.2 1.6 1.2 .8 .6 .3 Median consumer u n it1....... ................................... 89.4 31.7 18.4 3.6 3.9 9.6 6.2 1.8 2.1 4.9 2.3 2.1 1.0 .5 1.3 Net money income class: $0 to $125............................................................. $125 to $250.......................................................... $250 to $375...................................................... $375 to $500.............................................. ........... $500 to $750.......................................................... $750 to $1,250..................... ............................... $1,250 and over......... .......................................... 137.0 109.3 95.8 89.2 85.1 80.8 45.8 56.2 43.7 34.8 31.3 28.8 25.4 11.0 30.2 24.0 20.6 18.9 16.8 13.8 8.4 5.5 4.4 3.9 3.9 3.8 3.8 5.3 4.1 3.3 3.5 3.7 3.4 4.4 2.1 11.0 9.3 9.4 9.7 10.4 10.6 6.4 6.8 5.5 6.4 5.5 5.9 6.7 3.1 2.7 2.2 2.2 1.8 1.6 1.6 .9 2.7 2.2 1.9 2.1 2.0 1.8 1.2 9.6 6.5 5.5 5.1 4.9 4.7 2.1 1.4 2.2 2.2 2.5 3.1 3.8 2.9 2.7 2.2 2.2 2.1 2.0 1.7 .4 1.4 1.1 1.0 .9 .8 .9 .6 .5 .6 .5 .8 1.0 1.1 2.7 2.2 1.6 1.2 .8 .6 .3 Median consumer u n it1 ........................................... 89.0 31.2 18.9 3.9 3.7 9.7 5.5 1.8 2.1 5.1 2.5 2.1 .9 .5 LI Net money income class: $0 to $125--........................................................... $125 to $250............................. ............................. $250 to $375......................................................... $375 to $500.......................................................... $500 to $750........................................................... $750 and over............ .......................................... 210.7 94.5 73.4 64.2 52.3 19.2 80.3 30.8 24.6 22.2 18.1 6.4 19.7 9.3 7.5 6.3 5.5 2.3 8.9 3.9 3.0 2.4 2.2 .8 12.5 5.5 6.6 4.9 3.9 1.6 28.5 15.4 11.1 9.2 7.1 2.3 17.8 12.1 7.9 7.3 6.1 2.3 1.8 1.1 .7 .7 .5 .2 5.4 2.2 2.0 1.6 1.3 .5 19.6 6.6 4.6 4.2 3.2 1.1 3.6 2.2 1.6 2.1 1.8 .7 5.4 2.2 1.6 1.2 1.0 .4 1.8 1.1 .6 .7 .5 .2 1.8 .5 .6 .7 .5 .2 3.6 1.6 1.0 .7 .6 .2 Median consumer u n it1 ................................ .......... 131.4 46.6 13.3 5.7 7.6 19.9 14.2 1.0 2.9 10.5 2.9 2.9 1.0 1.0 1.9 Nonfarm families and single consumers (2 ) Farm families and single consumers 1 The percentages on this line are based on averages representing the expenditures of the consumer unit with the income below which half of the families and single consumers in the Nation fall. 20.05 percent or less, SPENDING AND SAVING OF FAMILIES IN W ARTIME Net money income class: $0 to $125.............................................................. $125 to $250........................................................... $250 to $375.......................................................... $375 to $500.......................................................... $500 to $750.......................................................... $750 to $1,250........................................................ $1,250 and over................... ................. ............. bO 22 SPENDING AND SAVING OF FAMILIES IN WARTIME T able 9. — Distribution by Incom e and Size o f Consumer Unit, Am erican Fam ilies and Single Consumers Percentage distribution of consumer units by net money income1 Net money income class Percentage distribution Average number of consumer units by of persons size Fami Fami All con Single lies of All con Single lies of All con con sumer two or sumer con two or sumer units sumers more units sumers more units persons persons Fami lies of two or more persons 12 MONTHS, 1941 All American families and singl/ consumers All incomes......................................... $0 to $500-................................... $500 to $1,000................................ $1,000 to $1,500............................. $1,500 to $2,000............................. $2,000 to $3,000............................. $3,000 to $5,000-............................ $5,000 and over............................ Nonfarm families and single consumers All incom es....................................... $0 to $500.. ................................... $500 to $1,000................................ $1,000 to $1,500— ......................... $1,500 to $2,000 ............................ $2,000 to $3,000 ............................ $3,000 to $5,000........ ..................... $5,000 and over______ ______ ___ Farm families and single consumers All incomes........................ .............. . $0 to $500...................................... $500 to $1,000................................ $1,000 to $1,500 — . ........................ $1,500 to $2,000______ _______ _ $2,000 to $3,000.— ........................ $3,000 and over......... ................... 100 16 19 16 14 20 10 5 100 38 34 16 7 5 (i) 2 (2 ) 100 13 16 16 15 22 12 6 100 100 100 100 100 100 100 100 14 30 23 14 6 4 1 (2 ) 86 70 77 86 94 96 99 100 3.25 2.66 3.05 3.17 3.48 3.46 | i 3.77 4. 36 3.61 3.39 3.75 3.65 3.74 3.59 3.77 4.36 100 12 17 16 15 23 11 6 100 35 34 17 8 6 (2 ) (2 ) 100 8 14 16 16 27 13 6 100 100 100 100 100 100 100 100 16 44 29 17 7 5 2 (2 ) 84 56 71 83 93 95 98 100 3.09 2.01 2.77 2.89 3.35 3.45 3.72 4.35 1 i ! ! ! : | j 3.48 2.92 3.56 3.40 3.60 3.60 3.72 4.35 100 34 25 14 11 9 5 100 63 20 (2 ) 7 3 (2 ) 100 32 25 15 11 9 6 100 100 100 100 100 100 100 4 7 3 (2) 96 93 97 100 98 98 100 1 4.03 ! 3. 74 4.04 4.74 4.30 3.52 4.46 4.17 3.82 4. 23 4. 74 4.30 3.52 4.46 (2 ) 2 2 FIRST 3 MONTHS OF 1942 All American families and single consumers All incomes...................................... . $0 to $125--.................................. $125 to $250................................... $250 to $375................................... $375 to $500................................... $500 to $750................................... $750 to $1,250................................ $1,250 and over............................. Nonfarm families and single consumers All incomes........................................ $0 to $125..................................... $125 to $250.................................. $250 to $375................................... $375 to $500................................... $500 to $750..... ............................. $750 to $1,250................................ $1,250 and over......... ................. . Farm families and single consumers All incomes ......................................... $0 to $125...................................... $125 to $250................................... $250 to $375................................... $375 to $500................................... $500 to $750................................... $750 and o v e r ............................. 100 16 15 14 13 19 12 6 100 35 26 17 10 10 (2 ) (2 ) 100 13 13 14 14 21 14 7 100 100 100 100 100 100 100 100 15 29 24 17 12 8 1 (2 ) 85 71 76 83 88 92 99 100 3.22 2.77 2.88 3.06 3.12 3.26 3.71 4.32 3. 59 3.66 3.00 3.56 3.45 3.49 3.71 4.32 100 13 15 15 14 22 14 7 100 35 25 18 11 11 (2 ) (2 ) 100 9 13 14 16 24 16 8 100 100 100 100 100 100 100 100 17 42 28 20 13 9 1 (2 ) 83 58 72 80 87 91 99 100 3.06 2.12 2.64 2.90 3.01 3.21 3.70 4.36 3.47 3.10 3. 35 3.45 3.36 3.45 3.70 4.36 100 34 16 10 7 7 7 100 45 14 (2 ) (2 ) (2 ) 3 100 34 16 10 8 7 7 100 100 100 100 100 100 100 4 5 3 96 95 97 100 100 100 98 3.98 | 4.00 3.97 4.22 4.24 4.07 3.84 4.12 4.29 4.27 4.22 4.24 4.07 3.84 (2 ) (2 ) (2 ) 2 i The percentage of consumer units having net losses may be derived by subtracting the sum of the distri bution shown from 100. 20.5 percent or less.
