Family Economics Review [Dec. 1960]

              Institute of Home Economics, Agricultural Research Serviee_,
UNITED STATES DEPARTMENT 0 AGRICULTURE
Prepared for home demonstration agents and home economics specialists of the
Agricultural Extension Service, this publication re:ports current developments
in family and food economics, and economic aspects of home management.
ANNUAL OUTlOOK ISSUE
CONTENTS
THE NATIONAL :mONOMIC SriUATIDN AND OUTWOK FOR 1961 • • • • • • • • • • 3
OUTlOOK FOR FAMILY LIVING • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7
OtJTI.OOK FOR FOOD . . . . . . . • • . . • • • . . . . • . • . • • . . . • • . • . . . • . . . • . • • • . . . 9
OUTLOOK FOR APPAREL AND TEXTJLE HOUSEFURNISHIOO-S • • • • • • • • • • • • • • 11
OUTlOOK FOR HOUSING AND HOUSEHOLD .:m,UIPMENT • • • • • • • • • • • • • • • • • • • 17
OUTLOOK FOR COSTS OF ATTENDING COLLEGE •••••••••••••••••••••••• 2l
ESTIMATED COST OF 1 WEEK'S FOOD ••••••••••••••••••••••••••••••• 26
CONSt:J1.1:E!R. PRICES . • . . . • . • • • . . • • • • • • . • • • • . • • • . • • • . . • • . • . • • . • . • • • . 28
ARS 62-5
December 1960 Washington, D. C •
The articles making up this issue of
Family Economics Review are condensations
of talks given at the 38th Annual National
Agricultural Outlook Conference, held in
Washington, D. C • , November 14-17, 1960.
THE NATIONAL :mONOMIC SITUATION AND OUTlOOK FOR 1961
Nathan M. Koffsky
Agricultural Marketing Service
After a period of advance from the brief recession of 1957-58, the economy
has once agaln leveled off, with some easing noted in recent months. There is
at present a rough balance of the forces making for economic expansion and
those for decline, which may persist for some months into 1961. However, the
weight of the evidence is that the uptrend in economic activity will be rees­tablished
as the year progresses.
The flow of income to consumers continues to increase and is currently at
a record high--some 5 or 6 percent above a year ago. For the period immedi­ately
ahead, consumer income should oold at least steady, at a level above a
year earlier. As economic growth is resumed in 1961, further increases in
consumer income will be generated. With prospects that consumer prices will
continue fairly stable, per capita purchasing power--currently at a rec~rd
high--may show a fUrther gain .
. The past year
So far this year, the Nation's output of goods and services--Gross
National Product in constant prices--has averaged 3 percent above the same
period in 1959. A slight decline occurred in the third quarter--but output
was still significantly above the third quarter of 1959. Dnployment so far
this year has averaged about a million higher than in the same months of 1959,
and in September was a record high for the month. But with a large increase
in the labor force, particularly of -women, unemployment in September 1960 was
up about 150,000 from September 1959. Further, the length of the work week
in manufacturing has shortened.
On the whole, the general price .Level has continued to be fairly stable.
The Bureau of Labor Statistics index of consumer prices in September was up
a little over 1 percent from September 1959. Retail prices of commodities
other than foods were about the same as last year. Food prices showed a small
increase. Service rates, particularly those associated with medical care,
continued to advance . The Agricultural Marketing Service index of prices paid
by fanners for family living items in October was very slightly above October
1959.
There was fairly broad strength in consumer markets in the first half of
the year. Expenditures for durable goods rose slightly but were generally at
a high level. (See table.) Automobile sales were at a rate well above 1959,
and the highest since 1955. Expenditures for nondurable goods--including
food--and for services rose about in line with the increase in consumer income
available for spending.
-4-
Personal consumption expenditures
(Seasonally adjusted annual rate)
I 1st 2nd 3rd Change
Item I quarter quarter quarter 1st l9b0 2nd 1960
1960 1960 1960 to to
l 2nd 1960 3rd 1960
I Billions of dollars
Personal consumption expenditures .
I
323.3 329.0 328.5 +5.7 -0.5
Durable goods ................... 44.2 44.5 42.5 + ·3 -2.0
Nondurable goods ................ 150.5 153·5 153.0 +3.0 - ·5
Services ........................ 128.6 130.9 133.0 +2.3 +2.1
Consumer disposable income 347.0 354.1 357·5 +7.1 I ........ +3.4
Savings ........................... 23.7 25.2 29.0 +1.5 +3.8
Personal savings rate ............. 6.8rf, 7.lrf, 8.lrf, + .3rf, +l.orf,
I
Source: U. S. Department of Commerce.
In the third quarter consumer spending was slightly reduced overall, with
a substantial decline for durable goods. Automobile sales fell below a year
earlier and an increasing proportion was the lower priced compact cars. There
was weakness in furniture and appliance markets, reflecting the decline in
residential construction. Expenditures for nondurable goods eased slightly,
but continued well above a year earlier. The uptrend in expenditures for
services continued. M::>re and more of the consumer dollar is being channeled
into services, particularly those involving better medical care and recrea­tional
activities. Expenditures for services accounted for 33 percent of
total consumer spending 10 years ago, 40 percent this year.
Reductions in manufacturing payrolls in the recent quarter were more than
offset by increases in unemployment compensation, social security payments for
the aged, and pay to Federal employees . With incomes up in the third quarter
and expenditures down a little, the rate of personal ,savings out of current
income rose to over 8 percent, the highest in 2 years. Consumer credit out­standing
has risen much less so far this year than in the same period in 1959.
Although installment credit extended has increased, the gap between extensions
of credit and repayments on debt has narrowed appreciably. Even so, total
credit outstanding now represents over 15 percent of disposable income, the
highest on record. Repayments have risen to the equivalent of more than
13 percent of income. Some analysts have noted that when repayments on con­sumer
debt exceed 13 percent of disposable income, consumers tend to tighten
up on spending.
Outlays for residential construction have trended downward since early
1959, largely due to tight mortgage credit. Reductions so far this year have
-
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been relatively small, but expenditures for residential construction in the
third quarter were down 7 percent from a year earlier. Expenditures for addi­tions
and alterations increased, but new nonfarm housing starts in recent
months were 20 percent fewer than in the same months of 1959. A substantial
part of the decline bas occurred on the West Coast.
The rise in business investment in new plant and equipment slowed appreci­ably
in the third quarter of 1960. The level of capital outlay is now 10 per­cent
higher than a year ago, but its rise during the recent expansion phase
has been less than in the expansion which followed the 1953-54 recession. Con­struction
on the fann has smwn sane increase, but sales of farm machinery
have been reduced .
The business inventory situation changed sharply. In the first quarter
of 1960 inventories were being built up at the rate of almost $11.5 billion a
year, partly a rebuilding of stocks of steel and steel products depleted dur­ing
the strike . In the second quarter the rate of inventory accumulation fell
to a little over $5 billion . By the third quarter the buildup had ceased, and
in the last few months the level of inventories has shown some reduction. Even
so, inventories are 4 or 5 percent higher than a year ago while sales are up
only 1 percent .
Our net export balance has shown continued improvement during 1960. Com­mercial
exports of merchandise are running some 20 percent higher than a year
ago; imports have shown a small decrease . Our net export balance has not
improved enough to offset our continued large foreign economic and military
aid programs and an increased capital outflow, partly reflecting lower inter­est
rates here than abroad and rising investment abroad by U. S. firms. Tlrus,
the outflow of gold continued heavy.
Government expenditures for goods and services have been rising this year,
mostly due to rising State and local government outlays to provide public
services and facilities for a growing population. The Federal highway program
has been increasing . Federal Government purchases of goods and services rose
in the third quarter, reflecting the Federal pay raise, enlarged CCC operations
for 1960 record crops 1 and larger spending for defense. However 1 Federal out­lays
were still $1 billion under the third quarter of 1959, because of sub­stantially
smaller outlays for defense .
The year ahead
It seems clear that the contribution of Federal, State, and local govern­ments
to economic activity will be substantially greater in 1961 than in the
year just past . Federal expenditures are expected to total over $3 billion
more in the current fiscal year than in the year which ended last .June 30. A
significant stepup is in prospect for outlays for the national defense. Ex­penditures
by State and local governments will continue to rise.
It seems likely that residential construction will increase somewhat.
Purchase tenns have been made easier and mortgage funds have become more
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readily available. However, with vacancy rates in. multiple housing units
higher than a year ago, the increase in residential construction is likely to
be moderate.
During 1961 we may expect some decline in business investment in new
plant and equipment. Yet it is not likely that the decline will be as large
as in 1957-58, when it was 15 percent in a 6-month period. The technological
race and increasing competition from abroad will encourage a fairly high rate
of investment.
MUch of the uncertainty as to the immediate future stems from the inven­tory
sector. There may be some further reduction in the level of inventories
in the coming months, but it should not be prolonged. It seems likely that
most of the impact from a changing inventory situation is already behind us.
Our net export balance will probably not change much during the year.
Economic growth appears to be slowing in some western European countries and
there has been some slackening in Canada. Nevertheless, much of the gain in
exports realized this year will likely be retained. Imports may show some
increase as our economic growth is resumed.
Consumer buying will likely be a strengthening force in the period ahead.
Consumer incomes have risen despite reductions in employment and hours worked
in recent months. In the 1957-58 recession, total economic activity declined
4 percent without significantly reducing the flow of income to consumers or
their expenditures. We expect more stability in economic activity in the
months ahead than in 1957-58, and consequently a better employment situation.
The current savings rate is unusually high and the pause in consumer buying
in the third quarter will likely give way to enlarged spending. Perhaps we
should not expect a vigorous upturn in spending for durables, al trough a rise
in residential construction will likely increase purchases of appliances.
Automobile sales may not be. quite as high next year as this year, and with
compact cars approaching 40 percent of the total market the average outlay
will likely be smaller. Further, consumers still have a record amount of
consumer credit outstanding to digest. On the other hand, consumer expendi­tures
for food, other nondurables, and services should be steadily augmented.
Population is growing at the rate of almost 3 million a year, encouraging
more spending, particularly for food.
A year ago business sentiment was high and rising. We were leaving the
fabulous fifties and entering the soaring sixties. Now that these expecta­tions
have not been realized in this first year of the decade, the talk has
turned to the sober sixties. We are fortunate that the economy itself does
not move in such wide swings as man 1s confidence in it.
-1-
OUTLOOK FOR FAMILY LIVING
Laura Mae Webb
Agricultural Research Service
There are likely to be divergent price trends during the coming year among
the various categories of goods and services which families (including farm
families) buy . The largest share of the average family's expenditures is for
foodJ indications are that retail food prices will be no higher in 1961 than
in 1960.
Apparel prices showed a slight advance during the past year, and are
expected to remain at about the current level during the coming year. (See
chart below .)
CONSUMER PRICE INDEX
City Wage Earners and Clerical Workers
% OF 1947-49
Medical care
140
120 Food
' Apparel ........... ~..... ------... L-.-_,.-J
--------.,---...--
1954 1956 1958 1960
IJLS OI.T.A. SELECTED ITEMS; MI.RCH 1953-SEPTEMIJER 1960.
U.S. DEPARTMENT OF AGRICUL,TURE NEG. 60 ( 10)·5623 AGRICULTURAL RESEARCH SERVICE
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Prices for new cars, as measured by the Consumer Price Index, customarily
decline in the months following the introduction of the new models; the decline
for the 1960 models has been greater than usual. The increased popularity of
compact cars has resulted in a substantial increase in production of domestic
cars in the lower price ranges • Consumers have also benefited this year from
substantial declines in used car prices and, in recent months, from lower
prices for household appliances. Although it now appears unlikely that 1961
prices for automobiles and household appliances will differ much from current
levels, purchasers of automobiles will benefit from the availability of lower
priced models and price declines which have been recorded for other models.
Prices for services--which now represent an appreciable share of the
average family's budget--have been increasing much more rapidly in recent
years than have prices for commodities. From September 1959 to September 1960
prices for services increased, on the average, nearly 3 percent as compared
with about 1 percent for commodities. Household operation services, gas, and
electricity are 3 percent higher than a year agoj medical care services are
4 percent higher. There is no indication that this rate of price increase
for services will level off in the coming year. Recent legislation provides
that the Federal Government will match State funds for assisting low-income
persons over 65 meet their medical bills. To what extent individual States
will initiate programs to obtain such funds remains to be seen.
Many families planning to repair or modernize their homes, or build new
homes, will likely find it easier to finance such work in the coming year.
The Federal Housing Administration has cut the minimum downpayment required of
a homebuyer who obtains an FHA-insured mortgage. The Farmers Home Administra­tion
has relaxed its regulations so that farmers who obtain a substantial
portion of their income from nonfarm sources may now be able to qualify for
loans to build a new home or repair or modernize an existing home. To qualify
for such a loan in previous years the applicant had to obtain a substantial
portion of his income from farm sources:
Recent changes in Old Age Survivors and Disability Insurance under our
social security laws will lead to the improvement of the economic position of
many low-income families. Retired persons who supplement their social secur­ity
benefits through wages may increase their incomes in 1961. Under the old
law, many beneficiaries received more in total income (earnings plus benefits)
if they limited their earnings to $1,200 a year. Under the new law, which
becomes effective in January 1961 this is no longer true. A beneficiary who
earns over $1,200 a year will always receive more in combined earnings and
benefits than if he earned $1,200 or less. Severely disabled workers under
50 years of age also benefit by new legislation, beginning immediately. Pre­viously
workers had to wait until reaching 50 to .draw such benefits. Benefits
will be raised beginning January 1961 for some children of deceased workers.
-9-
OUTLOOK FOR FOOD
Robert J. Lavell
Agricultural Marketing Service
Food supplies through 1961 will be a little larger than they were this
year, with the increase just about matching the increase in population. Con­sumer
demand for food is expected to remain strong since general economic
activity and employment will likely be maintained, with the flow of income to
consumers continuing at a high level. Overall consumption of food per capita
will likely be at about the same rate as in 1960.
With food supplies and demand conditions little different from this year,
retail food prices next year are expected to average close to those of 1960.
Food marketing margins as well as prices received by farmers for food should
be little different.
Meat.--Civilian meat consumption in 1961 is expected to increase about
4 pounds per person. Most of the increase will be in beef, which should reach
a record 89-90 pounds per person. Veal consumption is expected to increase a
little, while lamb and mutton will be somewhat lower.
Cattle slaughter in 1961 is expected to be heavier throughout the year
than in 1960, with the increase mostly in lower grade beef. Pork supplies will
continue appreciably lower through mid-1961 than in the same period last year.
If the 1961 spring pig crop is expanded as now expected, the second-half pork
output should be somewhat larger than this year. For the year as a whole,
pork production will average the same on a per person basis.
Retail meat prices next year may be about the same as this year's . The
price of beef should average a little lower, offsetting a slightly higher
average for pork.
Poultry.--Poultry meat probably will be somewhat more plentiful in 1961
than in 1960. Average consumption per person is expected to be a little higher
and average retail prices lower. Generally favorable 1960 prices to producers
and the increase in large-scale production facilities will encourage the main­tenance
of high-level production even with uncertain price prospects.
Eggs.--With the laying stock expected to be smaller than this year's, egg
production in the first part of ·1961 will be down from 1960 . Supplies of eggs
will pick up later in the year. Average consumption rate for . l96l is likely
to be below the low rate for 1960.
Dairy products. --Milk production in 1961 is likely to continue to increase
Supplies of milk and milk products available for consumption are expected to
be larger than in 1960. They should be more than ample to meet consumer demand
at current retail price levels.
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Consumption of fluid milk products per person may be somewhat less than
in 1960, despite a probable gain for fluid low-fat and nonfat milk products.
The long-term downward trend in consumption of butter, evaporated mil.k, and
fluid cream probably will continue through 1961.
Fats and oils. --Supplies of food fats and oils in the next marketing year
will be large, though somewhat down from last year's record. A drop in lard
production and reduced carryover of so:y'beans will more than offset the small
increase in prospect for cottonseed oil and butter.
Civilian use, per capita, of food fats is expected to continue close to
the 46 pound (fat content) rate. The pattern of use will probably be similar
to this year's, when increased use of margarine was offset by smaller consump­tion
of butter and lard.
Fruit.--Total supplies of fresh and processed fruits probably will be a
little smaller through mid-1961 than they were this year. The drop will be
mostly in fresh deciduous fruits and a few processed items.
Supplies of fresh citrus fruits will be about the same . Supplies of
fresh deciduous fruits will be somewhat smaller, mostly because of smaller
apple and pear crops. Imports of bananas are expected to continue high.
Canned fruit will be plentiful through mid-1961, but down somewhat from the
same period last year. Deciduous fruit juices will likely be about as plent­iful
as they were last year. About as large a supply of frozen deciduous
fruits and berries will be available in 1960-61, though supplies of frozen
concentrated citrus juice probably will be smaller than a year earlier.
Supplies of dried fruits will be about the same. Very large supplies of
tree nuts are in prospect.
Vegetables.--Not much information is available on production of vegetables
in the first half of next year. Past experience, however, suggests that sup­plies
of fresh market vegetables in the first half of 1961 are likely to be
no larger than in the first half of 1960.
Supplies of frozen vegetables will be at least as large as last year, but
there will be slightly less canned vegetables. Civilian per capita consump­tion
probably will average a little above that of last year for frozen vege­tables
and about the same for canned vegetables .
Potatoes .--More white potatoes will be available through this winter than
last, but materially fewer sweetpotatoes. Because of the supply situation,
retail prices of round white potatoes may be a little lower, but russets may
be about the same as last season. Higher prices than a year earlier are in
prospect for sweetpotatoes.
Civilian per capita consumption of white potatoes and potato products
combined should be about the same as :Last year, or slightly higher. Consump­tion
of sweetpotatoes is expected to be down quite a bit.
-ll-
Cereal food products. --Grain supplies will continue very large. Record
supplies of wheat and com will be available. Oat supplies will be about the
same, but rice and barley supplies will be down about 5 percent. Per capita
civilian consumption of cereal food products is expected to be close to last
year's rate.
Sugar.--Production of beet sugar for 1960 promises to be record large.
Record production is also expected from mainland sugar cane. World supplies
are more than enough to meet U. S. import req_uirements, but some of it is
located in distant areas •
OUTI.DOK FOR APPAREL AND TEXTILE HOUSEruRNISHINGS
Ethel D. Hoover
U. S. Department of Labor
Trends of apparel and bousefumishings prices
Since the end of the war, retail prices for apparel as a group (including
footwear) have shown less increase than on any other of the eight major
groups y in the Bureau of Labor Statistics Consumer Price Index (CPI). It
was not until September 1960 that the apparel index reached a level as high
as 10 percent above 1947-1949, compared with almost 27 percent for all com­modities
and services. As chart l (page 12) shows, the fluctuations in
apparel prices, both up and down, have been moderate, particularly since the
Korean period. Retail apparel prices edged downward through the first part
of 1955 to 3 percent above 1947-49. Since that time they have moved upward
at a relatively slow pace (the average for the year 1956 was 5.5 percent above
1947-49; 1957, 6.9 percent above; 1958,. 7.0 percent; and 1959, 7.9 percent)
and have continued to rise during the first 9 months of 1960.
Retail prices for textile housefUrnishings show almost the same pattern
of change. From September 1959 to September 1960, prices of textile bouse­furnishings
increased 1.3 percent, compared with a 3.4 percent decline in the
preceding 6 years.
The averages, of course, are made up of items which may show different
price movements. Chart 2 (page 12) shows the trends in prices for men 1s and
boys 1 , women's and girls 1 , and other apparel. Prices for men 1 s and boys 1
y The eight major groups referred to are Food, Housing (including rent,
home maintenance, gas, electricity and fuels, household operation, and textile
and other house fUrnishings), Apparel (including footwear), Transportation,
Medical Care, Personal Care, Reading and Recreation, and Other Goods and
Services.
Cbart ~
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CONSUMER PRICE INDEX
All Items and Apparel
1947-49:100 INDEX
140
130
L-~---L--~~~-L--J---L-~--~--~~---L--J---L-~ 80
1947 '48 '49 'SO '51 '52 '53 '54 'SS '56 '57 '58 '59 '60 1961
UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS
Cbart 2
QUARTERLY
CONSUMER PRICE INDEX
Apparel and Apparel Subgroups
MONTHLY
1947-49•100 INDEX
150
140
130
L----L~~L----L--~ L----L----L----L----~~~~~ ·0
1952 1953 1954 1955 1956 1957 1958 1959 1960 1961
UNITED STATES DEPARTMENT OF LABOR · BUREAU OF LABOR STATISTICS
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clothing have increased more than for the other two, 12 percent since 1947-49,
as compared with 1 percent for women's and girls' and a decline of 7 percent
for "other"; and in the past year 2. 7 percent for men 1 s and boys 1 and 1 per­cent
or less for the pther two subgroups.
When apparel items are classified according to major fiber content, the
reasons for these differences are apparent. Men 1 s and boys 1 clothes are still
primarily wool and cotton. In women's clDthing the manmade fibers are more
important. Since 1953, prices of wool apparel have increased 4 percent and
cotton apparel 6.5 percent, while manmade fiber apparel has gone down 6.0 per­cent.
The somewhat higher apparel prices this year are linked with the healthier
condition of the textile industry. Retail sales for the first 8 months of 1960
were higher than for a like period last year. Estimates by the Department of
Commerce indicate a sales gain of about 3-1/3 percent for men's and boys'
wear and 1-1/3 percent for women's and girls' wear.
Consumer buying has shown little inclination to curtailment, in apparel
as in many other lines. Although the dollar volume of retail sales of apparel
and housefu.rnishings has not shown a great spurt, it has increased somewhat
more than would be accounted for by population growth.
With signs of sustained but not greatly increased buying and with no
apparent general pressures on prices either upward or downward, I would expect
that prices of apparel and housefurnishings will show relatively small changes
during the next year (other than the normal seasonal changes) with perhaps a
slight upward drift.
Trends. in the use of textile fibers
In 1959, cotton and wool represented almost 70 percent of the civilian per
capita consumption of the major fibers used in the United States for all pur­poses.
This is, of course, a reduction from earlier years. In 1940, cotton
was about 80 percent of the per capita use of all major fibers. By 1950 cotton
had been reduced to 66 percent, with rayon and acetate growing in importance.
The reduction in use of cotton since 1950 has been continuing, but at a slower
rate than in the preceding 10 years. Between 1920 and 1950, wool varied some­where
between 9 and 13 percent of total per capita consumption. Since 1950,
wool's share has fluctuated around 8 to 8-1/2 percent of the total.
After the dramatic increase in rayon and acetate from practically nothing
in 1920 to just over 20 percent of the total in 1950, the proportions of the
cellulosic fibers remained at about the same level in the past decade. In
recent years the newer manmade fibers are duplicating the prewar rayon picture.
By 194o, rayon had displaced the older fibers to the extent that it was 11 per­cent
of the total. In 1959 rayon and acetate are in a fairly stable position,
with other manmade fibers representing 11 percent.
During the next year some changes may Qccur in these proportions of fiber
used, but I would expect such changes to be relatively minor.
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Product develo~ent in the textile field
Blends.--The appearance, feel, variety, and durability of products made
from the natural fibers still constitute the standards by which the consumer
judges products of manmade fibers. Some of the consumer dissatisfactions with
manmade fibers products stem from deficiencies in the perfonnance of some of
these fibers, not only because they have not lived up to miracle claims, but
also because we make comparisons with the natural fiber products. It is
expected the natural fiber products will continue to maintain dominance in use
in the immediate future, not only because of their use apart from manmade
fibers, but also because many of the newer fibers are more satisfactory in
performance and appearance when combined with the natural ~nes ·
One textile authority has indicated that the most successful use of man.:
made fibers is in blends with natural fibers. In his opinion, blending is
"far more than a technical and commercial device--it is the birth of a new
art," and manmade fibers do not replace natural fibers but "improve them by
compensating for nature 1 s deficiencies in performance." ?J
The new rules and regulations issued by the Federal Trade Commission under
the Textile Fiber Products Identification Act (effective March 3, 1960) pro­vide
for identification of all fibers used in any article if the fiber is
present in the amount of more than 5 percent. Such identification must be
according to the generic names, ]/ although fiber trademarks may also be used.
What is still missing on the labels are expectations of performance. Even in
this field, however, we have come a long way from the time when we only knew
whether a garment was washable or had to be drycleaned. In addition to label
information that provides better guides on garment. care, there are more and
more reports becoming available to the general public on performance .
This coming year will undoubtedly bring forth an even greater variety of
blends, with a greater number of blends of manmade and natural fibers.
Trends to lighter weights.--Some years ago, the BLS list of items priced
for the CPI included a man's suit of 14 to 15 ounce per yard worsted fabric.
This was the standard suit throughout a large part of the United States for
year-round wear. The typical summer dress suit was an all-wool tropical
worsted made of 10 to 11 ounce per yard fabric. This was prewar. By 1952,
the most popular year-round suit was made of 13 to 13-1/2 ounce per yard, the
tropical wors~ed w~ generally 9 to 10 ounce per yard. This year the heaviest
year-round su1t pr1ced is a 12 to 12-1/2 ounce per yard with a substantial
number of q_uotations as low as 10 ounces per yard • The summ er dre ss su1· t s are
:2::/1 Charles de Cizancourt. 11Whithe r Man-Made Fibers" .American Fabrics
No. 50, pp. 45-52. Summer 1960.
J/ .The rules and regulations provide the definitions ·for the following
gener1c names for manufactured fibers· Acr 1'
acetate saran azlon nyt .1 1
· Y lc, modacrylic, polyester, rayon,
metallic' and g' lass ' A lisr1t , f nty ond ' rubbe.r ' spandex' vin al , o 1 e fin , vin yon, Fabrics ' No. 47 Fa.l l 1 o ra e and flber names al . Am . 959 d . . so appear 1n er1can
' ' an m varwus issues of Textile Organon.
-15-
also lighter--8 ounces per yard or less--and come in a variety of fibers and
blends. Men's suits provided the first clear indication to us of the gradual
change to lighter weight fabrics in the men's wear industry. This trend has
been continuing at a faster pace recently in most of the categories of apparel.
One development in the fabric field this fall and winter is the use of
foam and new synthetic fibers to achieve warmth wi tbout weight. A layer of
foam about 1/32 of an inch in thickness, whose ingredients are many of the
same chemicals used in the synthetic fibers, is laminated to fabric through
heat fusion or by an adhesive. The foam acts as an interlining. Some of the
fibers that have been used only for sweaters or shirting fabrics up to this
time are now being used for outdoor garments. The weight of a garment made of
these laminates is much less than the older fabrics. One description of short
outdoor coats for men stated "The old sheeplined coats and the famous Mackinaw
were weighty defenses against the elements, but you had to be in pretty good
shape to wear them. The fabrics used in those old outdoor coats weighed any­where
from 32 to 40 ounces per yard of fabric; the new foam interlinings weigh
2 to 4 ounces per yard." 'if I would expect to see greater use of these lami­nated
fabrics during the next year in rainwear, jackets, and sweaters. Adver­tisements
of these fabrics state that they are washable.
Another development is the expected extension in the uses of elastic
threads and fabrics . The strong but fine elastic threads developed in recent
years will probably show up in great volume in stretch fabrics, particularly
in women's undergarments. One new fabric of two-ply worsted and wrapped elas­tic
yarn is being suggested for stretch pants. Another fabric I would expect
to see more generally used in girdles, brassieres, and perhaps swimwear is a
lightweight, machine-washable, rubberless, stretch spandex satin. Lightweight
lena weaves with elastic threads are also being used in increasing volume for
strapless underwear.
The lightweight nonwoven textiles 2/ are expected to be used to an in­creasing
extent, particularly for interlining for wash-and-wear clothing. A
new one is made of Dacron, and tests of its use as interlining indicate a high
performance, particularly on dimensional . stability and capacity to recover
from creasing.
Easy-care .--"Easy-care" garments were embraced very widely, particularly
by women with small children. But complaints were soon forthcoming, primarily
because consumers were inclined to take exaggerated selling claims at their
face value and could not, without additional information, know bow the garment
sbould be handled or what to expect in performance. Bit by bit information is
being made available through the industry, ~men's magazines, the Department
of Agriculture, testing laboratories, and similar organizations. In 1958 the
National Association of Shirt, Pajama and Sportswear Manufactures set stand­ards
for terms used in selling and advertising. These standards are expressed
'if New York Times Magazine, September ll, 1960 - Report on Men's Wear,
p. 91.
2/ Sometimes called "web textiles."
-16-
in everyday language with a minimum of technical woTds . Other efforts in this
direction, as well as technical developments in fibers and finishes, have been
proceeding to eliminate reasons for complaint and to provide a true wash-and­wear
· fabric • A new polyester fiber is being promoted as "unbelievably advanced
in wash-and-wear performance." A cotton finish introduced about a year and a
ba.lf' ago is proving satisfactory. Gradually the idea that for some "wash-and­wear"
items no ironing is needed is being dispelled.
Fibers .--There are many new fibers in the experimental or early produc­tion
stages that we can expect to find in some form or other in the .American
market during the coming year.
In the last year or so, we have seen the introduction of a new acrylic
fiber (of which the best known is Orlon), which is reported to have the soft­ness
and easy-care properties of earlier acrylics, and to overcome two of
their deficiencies--pilling and a limited color range, limited to pale pastels
and whites. It is said to have greater resistance to pilling and readily
accepts strong dyes but resists water thus retaining the ~uick drying proper­ties.
A new polyester
have "muscle power."
for a long period of
is also said to have
fiber is said to have the "ability to remember" and to
A garment made of this fiber should stay fresh looking
time and through inclement or lrumid weather. This fiber
high resistance to pilling.
A French man:nade fiber, a polyvinyl chloride, is being introduced in the
.American market. One property attributed to it is the ability to shrink up to
55 percent, so that by the application of heat to a woven fabric greater den­sity
is obtained and also interesting effects can be obtained in blends with
nonshrinking fibers.~ One of the newest developments in the knitted fabric
field is a washable blend of one form of this fiber with .American synthetics
and the knitted fabric is reported to be difficult to distinguish from a fine
wool jersey. This fiber is likely to be found in blankets, work clothing,
cold weather clothing, and other articles in the near future.
Another import--this one from Italy--is a polypropylene fiber. It is
reported to have properties making for easy-care, high tensile strength, and
good insulation. This fiber is claimed to be the lightest fiber in existence
and makes exceptionally · lightweight fabrics . It is also said to have the
advantage of low cost since it is obtained from propylene gas, a by-product of
the oil refining process.
I want to call to your attention the directory of Man-Made Fiber Brand
Names that accompanies the most recent issue (No. 51, Fall-Winter 1960) of the
.American Fabrics magazine. This includes all U. S. brands by types as well as
the major brands made by foreign producers.
~ The Marketing Presentation section of .American Fabrics contains an
account of the French fiber in the Spring 1960 issue and of the Italian
fiber in the Fall-Winter 1960 issue.
-17-
OUTIDOK FOR HOUSING AND HOUSEHOLD muiPMENT
George G. Johnson
U. S. Department of Labor
The rate of housing construction during 1960 shows abrupt changes from
month to month. Arter several brief but encouraging gains September Commerce
Department reports showed a slump of 17 percent from August--after allowance
was made for seasonal change. It now appears that residential construction
starts will total about the same as for 1958 but considerably below 1959.
This prediction and later comments are my own view and are not necessarily
those of the Department of Labor.
Through the year, houses have not been selling readily and the market has
become very competitive. The competition has been of benefit to consumers in
that builders have been more progressive in marketing and construction ideas
to make homes saleable .
Demand for housing
The rate of marriages has begun to increase slightly and is now up about
2 percent above 1959. Both 1958 and 1959 rates were the lowest since the
depression in the thirties.!/ The large proportion of children and teenagers
below marriage age in the population depresses the rate, of course. Since
average income is higher than ever for newly married couples, it is to be
expected that most will set up separate households. Only 2.4 percent of the
married couples did not maintain their own households in 1960 as compared with
5.6 percent in 1950. gj
The number of births is declining slightly; during the first 6 months of
1960 it was about 2 percent under the same period last year. The downturn is
assumed to be only temporary since there appears to be no evidence of a trend
toward smaller families . J/
The large post World War II baby crop will be reaching marriageable age
in the second half of the 1960's. They will contribute to a possible total
increase of l million households a year. }Y Additional shelter demand will
come from the elderly. Liberalized retirement and employment opportunities
have made it possible for an additional 300,000 persons per year, 65 or over,
to maintain museholds rather than to "double up."
y U. S. Department of Health, Education, and Welfare. Monthly Vital
Statistics Report, Vol. 8, No. 13. April 25, 1960.
gj U. S. Bureau of the Census . Current Population Reports, Population
Characteristics, Series P-20, No. 103. July 6, 1960.
]./ Ibid.
!!:/ Ibid., No . 90. December 29. 1958.
-18-
We predict that the demand for housing will rise to new heights in the
second half' of the decade. This assumes an adequate level of emplo;yment and
other characteristics of a heal thy economy.
Rates of new bous ing production
Economists and housing people dif'f'er in estimates of just what quantity
of housing should be added to the supply each year. The opinions might aver­age
out at about 1.5 million units including about 100,000 farm homes.
According to preliminary census housing counts, we have added 1.25 mil­lion
units yearly, on the average, since 1950. 2./ Additions to the housing
supply other than by new construction are largely from conversion (creating
new units by dividing existing units) and probably run about 200,000 a year.
This means that the desirable total of 1.5 million units must include 1.3 mil­lion
newly constructed units.
The effects of an improving supply of mortgage money should be felt by
1961. Therefore, next year 1s total of units started may approach our goal of
l. 3 million. The total for last year was almost 1.6 million.
Fewer than l out of 5 homebuyers is able to pay cash for his home. Of
the remainder who do not "take over" existing mortgages, about 3 of 4 finance
their homes with conventional mortgages. The remainder use Federal Housing
Administration or Veterans Administration mortgages. Since about 1956 VA
mortgages have dropped in importance, and in 1959 represented only about
6 percent of the total number of new mortgages written. §./ New homes are
often for sale only under FHA or conventional mortgages, both of which entail
higher downpayments and, frequently, higher monthly pa;yments than VA financ­ing.
Lenders consider VA mortgages a less attractive investment because of
their relatively low interest rates.
Large apartment houses are being constructed at the most rapid rate since
1954-55· Indications are that construction of large multiunit structures is
running about a third above the rate for 1959, according to Engineering News
Record. I/
Mobile houses are becoming elaborate and production is soaring. Last
year over 114, 000 homes on wheels were sold, an increase of 11 percent over
1958. Vacation homes production is boo~ing also.
5/ U. S. Bureau of the Census, Housing Unit Counts, HC(Pl)-1. September
19b0.
§./ Housing and Home Finance Agency. Housing Statistics, Annual Data.
March 1960.
7/ The Housing Institute, New York. The Housing Letter. September 3,
19b0.
-19-
Trends in costs o"f housing
It is beginning to be easier to borrow money to buy or build a house than
it was earlier this year. The cost o"f constructing a house, and therefore
often the price, is higher than a year ago. The Boeckh Index o"f Residential
Construction Cost was over 2 percent higher last May than 12 months earlier.
Building materials are cheaper, on the average, but average hourly earnings
in co!ltract building construction are up over 5 percent. ~/
Land has increased in price more than other elements o"f housing. The
average site cost in FHA valuations increased "from $761 in 1946 to $2,362 in
1959. 2./ These prices, however, are not necessarily "for comparable qualities
o"f land. Since land costs previously comprised roughly 10 or 12 percent o"f
the cost o"f a house and now may represent 16 or 18 percent, we can estimate
that about a third o"f the average price rise in houses since the late 1940's
is caused by a rise in land prices.
The outlook "for 1961 so "far as mortgage money is concerned justifies some
optimism. The supply o"f money for mortgage credit has already increased
slightly.
Unlike earlier periods when shortages of mortgage credit developed, mort­gage
terms (other than interest rate)--such as downpayment and amortization-­have
remained quite stable. For example, VA loans still have downpaym.ents
averaging 3 percent of the price and usually extend for 30 years • They are,
however, scarce and hard to obtain. FHA mortgages for new homes are al.so
typically for 30 years and require downpaym.ents of only 7 percent of the pur­chase
price.
The trend of cost for rental and owner-occupied shelter is upward; the
rate of increase has been 1-1/2 to 2 percent a year. Urban homeowners tend to
spend more than renters. Costs of rental and owner-occupied quarters of
equivalent size and quality are about equal. 10/
Rent paid for a "fixed quality of shelter has advanced steadily over the
decade, as measured by the Consumer Price Index. From December 1957 to
December 1959 the rent index increased about 3 percent. The LDcrease for 1960
will be probably about 1 percent.
Costs of homeownership as measured by the Consumer Price Index increased
aJmost 3 percent from December 1957 to December 1959. About the same as for
rent, these costs include purchase price, maintenance and repair, mortgage
interest rate, hazard insurance, and property taxes . Of these, property taxes
8/ U. S. Bureau of Labor Statistics. Employment and Earnings, Vo·l. 7,
No-:- 4. October 1960.
~./ Julian Zimmerman, FHA Commissioner, as reported by House and Home.
August 1960.
10/ Monthly Labor Review, "Monthly Cost of Owning and Renting New Housing,"
August and September 1954.
-20-
have shown the greatest increase. Local public services and install ations for
water, sewer, schools, etc., have risen in price over several years and a r e
expected to continue to rise.
The Federal Reserve Board's Survey of Consumer Finances for 1959 f ound
more families planned to purchase homes in 1960 than in 1959. Thi s vol ume of
purchases was not realized in 1960, according to the National Association of
Real Estate Boards.
Trends in housing construction and design
The median size of new medium-priced and low-priced homes has increased
for years. It is now about 1,100 square feet, if FHA mortgaged houses may be ·
taken as typical. The 900-square-foot house of 1950 had space for 2 or 3 .
small bedrooms and 1 bath. A separate dining .room was out of the question
unless the living room was unreasonably small. Today, space is often provided
for an entrance hall, family room, second bathroom, and breakfast area .
Besides a larger number of more spacious rooms, the planning is more
imaginative. The prevalence of large families bas caused builders to attempt
a greater separation by zones, for example, sleeping, living, and recreation
areas. The split level accomplishes this most effectively. The rambler with
finished English basement and the "L" shaped house also may be efficiently
zoned.
Builders have tried to increase the blending of the interior and exterior
through greater use of picture windows, sliding glass doors, and patios or
courts. The land site is being finished with more care by utilizing land con­figuration
and existing trees.
Household Equipment
After a record year in 1959 for sales of household goods, we confidently
expected continued strength in 1960. The boom failed to continue, largely
because o:f the drop in new house construction. The average family buying a
new home spends $1,569 the first year on furnishings and equipment, according
to a study conducted by the University of Houston. This includes $635 for
furniture, $710 for appliances, and $224 for yard and work tools.
Department stores report a downward trend in sales of furniture and
bedding, domestic :floor coverings 1 major household appliances, radios, and
television sets. A few growth items such as dishwashers, garbage disposers,
eye level ovens, and counter-top ranges moved up against the trend.
From September 1958 to September 1960 prices of appliances have continued
to move down slowly--about 1 percent oVer the 2 years. Prices for all bouse­furnishings
increased about 0. 5 percent, due to higher prices for textile
housef'urnishings, furniture, and wool floor coverings. The outlook for prices
-21-
next year in these items is for stability or some strengthening to accompany
the rise in the production and sale of houses.
Quality improvement
Among many of the older itelllS there has been an upgrading in quality
which iB hard to evaluate in terms of price. For some items, objective com­parisons
can be made. For example, the standard table television set, priced
for the Consumer Price Index in 1950, was a heavy, unwieldly model. It was
complicated to tune, had a 16-inch picture tube, and retailed for about $275·
The 1961 table model currently priced for the Index is light, attractively
slim, and space conserving. It has circuit improvements that are readily
apparent in tuning and a 23-inch picture tube. This model retails for approx­imately
$220, or $55 less than its 1950 counterpart. The same trend holds
true to a somewhat lesser degree for floor coverings and furniture.
The American genius for technology and gadgetry has been apparent in the
development and improvements of household appliances. The stimulus for prod­uct
improvement has arisen partly from the strength of the replacement market
in recent years. A consumer buying his second or third air conditioner or
vacuum cleaner may be harder to satisfy than when he purchased initially.
OUT:WOK FOR COSTS OF ATrENDING COLLEGE
J. Harold Goldthorpe
U. S. Department of Health, Education, and Welfare
The problem of financing the college education of children is one which a
large number of families will face in the decade of the sixties. The demands
of the national welfare, indeed our survival, call for the effective extension
of educational opportunities to all young adults who desire them and are qual­ified
to profit thereby.
Although it is well known among the leaders of higher education that they
face serious problems during the coming decade in raising vast sums to increase
faculty salaries, educational services and plant facilities, a somewhat dif­ferent
financial problem concerns us: What does college cost students and
their families, and how do they raise the necessary funds?
Trends in tuition fees since l94o
Data relative to institutional tuition charges for public and private
higher institutions, the Consumer Price Index, and median family incomes over
the last 20 years are presented in table 1. The family income data are for
-22-
families with heads between 35 and 54 years of age, the period·during which
most parents are confronted with their children's college costs. The figures
on the mean charges for tuition and fees are for 196 representative institu­tions.
Each college and university of this group enrolled more than 1,000 full­time
undergraduate students. Together they accounted for 55 percent of the
total undergraduate enrollment and a larger proportion of graduate students.
Table 1.~-Median income of families with heads aged 35-54 years, the Consumer
Price Index, and mean institutional tuition charge, 1939-1959
Median family income Mean institutional tuition
Heads--35-54 years and required fees 2/
of age Consumer Public institutions Private institutions
Year Percent Price Percent Percent
Amount~/ relative Index Amount relative Amount relative
1939=100
to 1939 to 1939 to 1939
1959 .. -- -- 210 $194 249 $890 287
1958 .. $5,722 391 208 179 229 820 265
1957 .. 5,560 380 202 168 215 741 239
1956 .. 5,383 368 196 155 199 690 223
1955 .. 4,987 341 193 147 189 638 206
1954 .. 4,719 323 193 135 173 590 190
1949 .. 3,393 232 171 112 144 465 150
1945 .. 3,059 209 130 -- -- -- --
1939 .. 1,462 100 100 78 100 310 100
-.
!/ From reports of the U. S. Department of Commerce and U.S. Department of
Labor.
2/ Mean tuition charges from 1939 through 1954 from: "Trends in Tuition
Ch1irges and Fees," Annals of the American Academy of Political and Social
Science, Vol. 301: pp. 148-164. September 1955. Data for 1955 through 1959
calculated for the same institutions.
Between 1939 and 1958 median incomes of families with heads 35-54 years
of age increased 291 percent. During the same period the cost of living
(Consumer Price) index rose lo8 percent. In the publicly controlled institu­tions,
many of which are the land-grant colleges and universities, the mean
tuition charge increased approximately 129 percent, and in the private col­leges
and universities 165 percent. Judging from the figures for 1960-61 and
recent announcements, the process of "upmanship" continues.
An objective view of these data for the past 20 years suggests the follow­ing
conclusions: (l) The rate of increase in mean institutional tuition
charges has not kept pace with the increase in family incomes; (2) the increase
in tuition fees lagged well behind the increase in the Consumer Price Index
until about 1954 and then rose sharply ahead of itJ (3) mean tuition charges
as a percentage of median family income declined materially.
-23-
In spite of this increase in median family income, the heavy impact of
taxes in recent years has materially affected the net discretionary income of
families. The burden of taxes for all governmental services--Federal, State,
and local--is likely to increase during the coming decade. lobreover, the
larger postwar families and the increased demands for higher education will
add to the family burden of financing the education of more young people per
family and the longer programs of educatio:J. many will pursue .
A comparison of tuition fees during the past decade is shown in table 2.
During this period the "overall" tuition increase was $2l5, or 86 percent. In
the public colleges and universities the mean tuition fee increased 73 percen~
from $ll2 to $l94. For the privately controlled colleges and universities,
the mean tuition fee increased 9l percent, from $465 to $890. In contrast to
the rather modest increases of $49 to $l02 among public 4-year institutions,
increases among privately controlled institutions ranged from $37l to $522.
Table 2.--Mean annual tuition and required fees of l96 representative
colleges and universities, l949-50 and l959-60
Mean tuition
Number of and r equired fees Increase
Type of institutions institutions l949-50 l959-60 y 5I Amount Percent
All institutions ........ l96 $249 $464 $2l5 86
Publicly controlled ..• l20 ll2 l94 82 73
Privately controlled .. 76 465 890 425 9l
Publicly controlled:
Universities .......... 69 l38 240 l02 74
Liberal arts colleges . l9 80 l29 49 6l
Teachers colleges ..... l7 89 l7l 82 92
Technological institutes 5 l42 22l 79 56
Junior colleges •.••.•. lO l8 30 l2 67
Privately controlled:
Universities .......... 57 457 885 428 94
Liberal arts colleges . l4 439 8lO 37l 85
Technological institutes 5 626 l,l48 522 83
l/ Conrad, Herbert S. and Hollis, E. V. "Trends in Tuition Charges and
Fees," Annals of the Academy of Political and Social Sciences; Vol. 30l:
PP. l48-l64. September l955.
g/ Preliminary Report (Department of Health, Education, and Welfare),
Division of Higher Education, Office of Education. May l 960.
-24-
Student costsJ 1952-53 and 1960-61
To meet the need for accurate information on the cost of college attend­ance
the Office of Education undertook a study several years ago. Question­naire
returns were obtained from 15,300 single undergraduate students enrolled
during the academic year 1952-53 at 110 representative colleges and universi­ties
in 41 States and the District of Columbia. A summary of student expendi­tures
for 1952-53, together with the estimates for the current academic year
1960-61 are presented in table 3. The mean expenditure of students enrolled
in privately controlled colleges and universities was approximately $550
higher than that of students in the public institutions . Men students spent
on the average $1,462, women students $1,273.
Table 3.--Students' expenditures, 1952-53 (actual) and 1960-61 (estimated)
Publicly controlled Privately controlled
Major item institutions institutions
1952-53 1960-61 ~/ 1952-53 1960-61 y
Mean total current expenditure .... $1,120 $1,300 $1,674 $2,100
Tuition and required fees ......... 151 225 546 863
Room rent ......................... 102 116 146 165
Board (regular meals) ............. 270 318 301 354
Clothing (including footwear) ..... 130 135 149 155
All other current expenditures .... 467 506 532 563
I
y Estimates based on the Bureau of Labor Statistics Consumer Price Indexes
and the increase in mean institutional fees since 1953.
The institutional tuition charge ($151 in public and $546 in privately
controlled institutions) was a relatively small portion of the student expend­iture
for 1952-53. The major expenditures which make it difficult for low­income
families to send a son or daughter away to college are the board and
room costs away from home rather than the costs of tuition and fees, books and
supplies.
Several factors appear to determine the cost of attending college:
(1) Spending habits formed at home; (2) choice of college; (3) pressures of
campus customs and mores; (4) size of family income and (5) whether or not a
student lives at home.
Regional variations enter the situation, as these mean expenditures show:
Northeastern ........•....•.....................
North Central ..................................
Western .......•...•..••.•..................•...
Southern .......................................
$1,676
1,262
1,209
1,164
-25-
On the average, students who lived at home and commuted to college spent
approxi.."'lately $1, 000 per year. Students who lived in private homes or college
dormitories spent approximately $350 more; and students who lived in frater­nities
or sororities approximately another $300.
Sources of student income
One study for the year 1959-60 obtained data through personal interviews
from a representative sample of 2, 700 families living in private homes. y
This study indicated that the mean annual expenditure of single college stu­dents
was $1,5501 and that for 3 out of 4 families expenditures varied between
$950 and $2,450. Of the mean expenditure of $1,550, parental contributions
accounted for $950, $350 was from the student, $130 was in the form of schol­arship
assistance, and $110 came from other sources.
Half of the families who had had children in college during the past
5 years had set money aside in advance to help pay college costs. These fam­ilies,
on the average, began 10 years earlier to save .such funds . In about
one-fifth of the families the mother took a job to help pay college expenses.
Approximately half of the families indicated that it was necessary to reduce
other expenditures or to live on a tight budget to meet their children's
college expenditures.
Fourteen percent of the families reported borrowing at one time or another
and parents reported borrowing twice as often as the students. The authors
commented on the reluctance of the parents to rely on loans . They stated
"borrowing to pay for a college education is regarded by most people as some­thing
to be done only when the need is acute and no other funds are readily
available • "
Prospects for the coming decade
A pressing problem confronting higher education in the decade of the
sixties will be that of obtaining adequate financial support. Will an in­creasing
portion of it have to come in the form of higher student tuition
fees? This is by no means a novel question, but it is becoming more urgent.
The principal argument for higher fees is that higher education is essentially
a matter of personal advantage and hence should be financed to a larger degree
by individuals. The average income of college graduates is usually higher
than that of nongraduates, and the college trained have greater "ability to
pay." A different philosophy holds that higher education is a social invest­ment.
This point of view holds that opportunities for higher education should
be made available to all youth of ability, irrespective of family economic
status.
y Lansing, John B., Lorimer, Thomas and MJriguchi, C. How People Pay For
College. Institute of SOcial Research, University of Michigan, Office of
Education Cooperative Research Program.
-26-
The "social investment" character of higher education has not prevented
public institutions in recent years from increasing their tuition charges.
However, it is still ~uite unlikely that States will abandon tax-supported
higher education in any substantial degree. It appears likely that student
tuition charges will continue to increase, but probably in different ratios
for the public and private higher institutions.
ESTIMATED COST OF 1 WEEK'S FOOD
The table on opposite page presents the estimated cost of l week's food
to be prepared and served at home. The estimate is based on ~uantities of
food in the low cost, moderate cost, and liberal plans. The plans are avail­able
as a leaflet--Low Cost, MOderate Cost, and Liberal Family Food Budgets,
HHE(Adm.)-146. The cost of food for a specific family can be estimated from
the table, since costs are given for individuals of different ages. These
costs are based on averages of food prices collected by the Bureau of Labor
Statistics in 46 cities, and may not apply to any specific city or region.
-27-
Estimated Cost of 1 Week's Food, ~October 1960--U.S.A. Average
Sex-age groups
FAMILIES
Family of two, 20-34 years 2/ ...•..••....
Family of two, 55-74 years~ ....••..••.•
Family of four, preschool children ]/ ..•.
Family of four, school children~/ ••.•.•.
INDIVIIXJALS
Children:
Under 1 year ............•..........••..
1-3 years •.•...•.•........•....•....•..
4-6 years ............................. .
7-9 years ............................. .
10-12 years ••....••....••.•....•.....••
Girls, 13-15 years •••.•..........•..••..•
16-19 years ••••....•......•.•..•......•
Boys, 13-15 years •.....•...•............•
16-19 years •..•.....•...•..•....••.•...
Women:
20-34 years ........................... .
35-54 years •••.•.•..•.......•...•...•..
55-74 years ........................... .
75 years and over •...•.....•••..•.••...
Pregnant .•.•..•.•....•...••..••...•....
Nursing ............................... .
Men:
20-34 years ........................... .
35..: 54 years .••••...•..•.......•...•••..
55-74 y-ears ........................... .
75 years and over •....••..•.........•.•
Low-cost
plan
Dollars
13.80
12.40
20.60
23.80
3.10
3-70
4.40
5.20
6.10
6.40
6.50
6.90
8.20
5.40
5-30
5.00
4.80
6.80
8.50
7-10
6.60
6.30
6.10
Moderate- Liberal
cost plan plan
Dollars Dollars
19.00 21.30
17.00 19.00
27-70 31.40
32-30 36.60
3-90 4.20
4.70 5.30
5-70 6.70
6.80 7.80
8.20 9.4o
8.70 9-90
8.70 9-90
9.60 10.90
11.20 12.60
7.60 8.50
7-30 8.30
6.90 7.80
6.50 7-30
8.90 9.80
10.90 12.10
9-70 10.90
9.10 10.10
8.60 9-50
8.20 9.10
1/ These estimates were computed from ~uantities in low-cost, moderate­cost,
and liberal food plans published in tables 2, 3, and 4 of the October
1957 issue of Family Economics Review. Quantities for children were revised
January 1959 to comply with the 1958 NRC Recommended Dietary Allowances. The
cost of the food plans was first estimated by using the average prices per
pound of each food group paid by nonfarm survey families at 3 selected income
levels. These prices were adjusted to current levels by use of Average Retail
Prices of Food in 46 Large Cities Combined released periodically by the Bureau
of Labor Statistics.
?:/ Ten percent added for family size adjustment. For derivation of factor
see pages 3 and 4 of the September 1960 issue of Family Economics Review.
3/ Man and woman 20-34 years; children, 1-3 and 4-6 years.
1JJ Man and woman 20-34 years; children, 7-9 and 10-12 years.
-28-
CONSUMER PRICES
Table 1.--Index of Prices Paid by Farmers for Commodities Used in Family Living
(1947-49 = 100)
November 1959; March 1960-November 1960
Item Nov. Mar. Apr. May June July Aug. Sept. Oct. Nov.
1959 1960
All commodities ............ 119 118 119 119 119 119 119 119 119 119
Food and tobacco ......... -- 115 -- -- 117 -- -- 117 -- --
Clothing ................. -- 118 -- -- 117 -- -- 119 -- --
Household operation ...... -- 117 -- -- ll7 -- -- 118 -- --
Household furnishings .... -- 104 -- -- lo4 -- -- 103 -- --
Building materials, house. -- 122 -- -- 122 -- -- 121 -- --
Auto and auto supplies ... -- 142 -- -- 140 -- -- 139 -- --
I
Source: U. S. Department of Agriculture, Agricultural Marketing Service.
Table 2.--Consumer Price Index for City Wage-Earner and Clerical-Worker Families
(1947-49 = 100)
October 1959; February 1960-0ctober 1960
Item Oct. Feb. Mar. Apr. May June July Aug. Sept. Oct.
1959 1960
All items .................. 126 126 126 126 126 126 127 127 127 127
Food ..................... 118 117 118 120 120 120 121 120 120 121
Apparel .................. 109 108 109 109 109 109 109 109 111 111
Housing .................. 130 131 131 131 131 131 131 132 132 132
Rent ................... 14o 141 141 141 141 142 142 142 142 142
Gas and electricity •••• 122 124 124 124 125 125 125 125 126 126
Solid fuels and fuel oil 136 139 137 136 133 132 133 133 135 136
House furnishings ....... 104 104 105 105 104 lo4 104 104 104 104
Household operation •.•• 135 136 137 137 137 137 137 138 138 138
Transportation .•••••••.•• 148 148 146 146 146 146 146 146 145 146
Medical care ••••••••.•..• 152 155 155 156 156 156 156 157 157 157
Personal care ............ 132 133 133 133 133 133 133 134 134 134
Reading and recreation .•• 120 121 121 121 121 121 122 122 122 122
Other goods and services . 132 132 132 132 132 132 132 132 133 133
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Source: U. S. Department of Labor, Bureau of Labor Statistics.