Family Economics Review [Mar. 1963]

              ~~~TlPr~~¥7~-,~~--------------~--------------------------~
MICS
EW
Consumer and Food Economics Research Division, Agricultural Research Servict~,
UN ITED STATES DEPARTMENT OF AGRICULTURE FW!!!!r~¥
A quarterly report on current developments in family and food economics and
economic aspects of home management, prepared for home demonstration agents
and home economics specialists of the Cooperative Extension Service.
CONTENTS
FAMILY EXPENDITURES IN FIVE CITIES, 1950 AND 1960
Page
3
JOB TRAINING--A RESOURCE FOR THE UNEMPLOYED.................. 6
FAMILY INCOMES AND BUYING POWER, 1944-61 ..........•..•....... 8
THE PRESIDENT'S COMMISSION ON THE STATUS OF WOMEN CONSIDERS
NEW AND EXPANDED SERVICES.................................. 10
CHANGING PATTERNS IN LIFE INSURANCE.......................... 12
OUTDOOR RECREATION AND LEISURE-TIME ACTIVITIES OF ADULTS..... 14
HIGHLIGHTS OF THE 1962 DRUG AMENDMENTS .....•.•..•.•...•.•..•. 16
WORK EXPERIENCE OF U.S. WIVES IN 1961 •.......•..............• 17
ESTD1ATED COST OF l WEEKrs FOOD AT HOME--U.S.A. AVERAGE
AND FOUR REGIONS . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
CONSUMER PRICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
INDEX OF ARTICLES APPEARING MARCH-DECEMBER 1962
ARS 62-5
March 1963
23
Washington, D.C.
~
FAMILY EXPENDITURES IN FIVE CITIES, 1950 AND 1960
Changes occurred in the urban family's spe~ding pattern between 1950 and
1960. Noticeable shifts in the proportion of total expenditures going for
different purposes were revealed in the preliminary data published by the
Bureau of Labor Statistics on income and expenditures of families and single
consumers in five major U.S. cities: Atlanta, Boston, Chicago, New York, and
San Francisco. ~ The data were collected by BLS in 1961 as part of the
1960-61 Survey of Consumer Expenditures, a nationwide study in urban and
rural (farm and nonfarm) areas, conducted as a cooperative effort by BLS and
the U.S. Department of Agriculture.
These five reports are among the first in a series to be released by BLS.
When completed, the series will present data on urban family income and ex­penditures
for 1960 in individual reports for each of 23 cities with popu­lations
of 50,000 and over, and in regional reports for cities of 2,500 to
50,000. A report giving the 1960 national average and averages for four
regions can also be expected in the near future.
Data from rural areas were collected by the Department of Agriculture in
1962, on 1961 income and expenditures. This information, along with corre­sponding
urban data for 1961, will be available at a later date.
Income and expenditures
Money income (after personal taxes) for all five cities averaged $6,643
per family in 1960, an increase of 51 percent over money income in 1950, the
year covered by the Bureau's last expenditure survey in these cities. Ac­companying
this increase was a 40 percent increase in family expenditures for
current consumption, to $6,127. This wider margin between personal disposable
income and expenditures enabled urban families to increase their gifts, con­tributions,
insurance, and savings in 1960.
Dollar outlays for all major categories of family expenditures were
higher in 1960 than in the previous survey, with one exception--housefurnish­ings
and equipment declined slightly in Chicago. The shifts in allocation of
funds for the various expenses were generally common to all cities. (See
table.)
~ References to each city are to the Standard Metropolitan Statistical
Area of that city. Averages used in this paper for all five cities together
are weighted on the basis of the populations of these five Standard Metro­politan
Statistical Areas.
Source: U.S. Department of Labor, Consumer Expenditures and Income, BLS
Reports, Nos. 237-2 and 237-4 through 237-7, November 1962.
Average income and expenditure• tor !amiliea !/ in five major u.s. cities, 1960 an4 1950
Money Total Food House Auto purchase
Cities income expendi- and Shelter Household furnishings Clothing and Medical Personal Recreation All other
after tures beverages operations and operation care care taxes equipment 31
Average expenditure per family (dollars) - 1960
Total five cities 6,643 61 lZT 1,650 1,180 366 305 642 655 394 163 232 540
Atlanta ..••••. 5,412 5,ll8 1,226 853 356 307 563 757 308 165 199 384
Boston •....•.. 6;869 6,045 1,571 1,212 363 261 605 730 321 161 214 607
Chicago .•.•••• 6,857 6,156 1,6ll 1,224 340 305 633 787 376 180 231 469
New York ..•.•• 6,708 6,336 1,762 1,223 387 317 694 529 431 157 228 608
San Francisco . 6,154 5,705 1,534 1,002 347 301 523 737 393 151 282 435
Average expenditure per family (dollars) - 1950
Total five cities 4,413 4,381 1,424 702 243 ZT6 5ZT 339 239 94 211 326
Atlanta .•..... 3,659 3,566 1,08o 546 196 2ZT 416 429 175 83 172 242
Boston .••..••• 3,841 3,946 1,300 764 170 213 439 299 180 90 184 307
Chicago ...•.•. 4,676 4,486 1,405 683 217 318 555 436 232 100 219 321
New York ...... 4,538 4,574 1,5ZT 731 291 ZT3 560 259 264 94 223 352
San Francisco . 4,129 4,048 11 ZT1 604 192 ZT4 450 469 235 90 187 ZT6
Percent of total expenditure per family - 1960
Total five cities - 100 ZT 19 6 5 10 ll 6 3 4 9
Atlanta ...••.• - 100 24 17 7 6 ll 15 6 3 4 8
Boston ......•. - 100 26 20 6 4 10 12 5 3 4 10
Chicago ....... - 100 26 20 6 5 10 13 6 3 4 8
New York ...... - 100 28 19 6 5 ll 8 7 2 4 10
San Francisco . - 100 ZT 18 6 5 9 13 7 3 5 8
Percent of total expenditure per family - 1950
Total five cities - 100 33 16 6 6 12 8 5 2 5 7
Atlanta ....... - 100 30 15 5 6 12 12 5 2 5 7
Boston ........ - 100 33 19 4 5 ll 8 5 2 5 8
Chicago ....... - 100 31 15 5 7 12 10 5 2 5 7
New York .•.... - 100 33 16 6 6 12 6 6 2 5 8
San Francisco . - 100 31 15 5 7 ll 12 6 2 5 7
--
Note: Percents may not add to total because of rounding.
!/ Includes single consumers. 3l Includes tobacco, reading, education, transportation (other than family auto), and miscellaneous.
I
+=""
I
-5-
Food and beverages, clothing and shelter
As incomes rise, the proportion of total expenditures going to food and
beverages usually declines. This was the pattern in urban areas from 1950 to
1960. S~owing the greatest shift in relative importance, the share of expenses
allocated to food and beverages was reduced 6 percentage points, dropping from
33 to 27 percent for the five-city average. Clothing also took a smaller part
of total expenditures in 1960 than in 1950, declining from 12 to 10 percent.
This was partially attributable to the fact that clothing prices rose less
over the decade than did prices for goods in most other areas of family ex­penditure.
The increasing popularity of casual (and usually less expensive)
clothing for everyday wear over the more formal attire of past years has proba­bly
contributed to the trend as well. Shelter (including utilities) took a
somewhat larger share of total expense in 1960. The combined share for these
three basic categories of family living expense--food, clothing, and shelter-­decreased
in relative importance over the years as income rose.
Automobile purchase and operation
Of greater importance in the family budget in 1960 than in 1950 was the
share of total expenses allocated to auto purchase and operation--S percent in
1950 and 11 percent in 1960. The growth of suburbia and its corollaries-­greater
dependence on the family auto and the increase in the number of two­car
families--as well as the rapid rise in prices for such services as repairs
and insurance, are no doubt reflected in this gain. The largest part of this
rise, however, should probably be attributed to the significant increase in
the number of car owners. The data revealed an increase in car ownership of
15 percent from 1950 to 1960.
Medical care, personal care services, recreation
Medical care took a somewhat larger share of family expenditures in 1960,
primarily a result of the rapidly rising cost of hospital care, physicians'
services and other medical services. The growing acceptance of health insur­ance
as a necessary allowance in the family budget would also seem to be an
influencing factor. Of the families represented in the 1960 survey, about
three-fourths subscribed to some type of health insurance or health service
plan, and payments for health insurance premiums accounted for about one-fourth
of total medical expense.
The rise in prices of services for personal care is probably reflected in
the increased share of expenses allotted this item, although the increase was
slight (1 percentage point).
The proportion of total expenditures going for recreation decreased by
1 percentage point. The increased popularity of home entertainment through
TV, resulting in the expansion of the television industry and lower retail
prices of this item has no doubt had its effect on expenditures for recreation.
-6-
The trend must be interpreted with caution, however f'or the term "recreation,"
as def'ined in these surveys, . does not include vacation or other travel expense
normally considered "recreational." Had these expenses been included in
recreation rather than in such categories as auto and other transportation and
f'ood and lodging away f'rom home, the proportion of' total expenses allocated to
recreation might have risen rather than decreased.
--Karen A. Stevinson
JOB TRAINING--A RESOURCE FOR THE UNEMPLOYED
Demand is increasing in the labor market f'or highly trained professionals
and f'or workers with new, modern skills. At the same time automation is dis­placing
a large number of' workers each year f'rom industry.
The unemployed and underemployed include the unskilled; older workers
whose skills are now obsolete; boys and girls under 20 with no skills, and
of'ten without high school education; and people living in depressed areas that
f'ail to of'f'er job opportunities. Two Federal training and retraining programs
provide these people with the chance to learn skills needed f'or today's jobs.
The two programs vary in some respects and serve to complement each other.
Both are new and gaining the momentum needed to make an important impact on
the economy.
Applicants to the local State employment of'f'ice are ref'erred to job
training courses and are helped to f'ind jobs when training is completed.
Area Redevelopment Act training program
The Area Redevelopment Act of' 1961 provides f'or training and retraining
of' the unemployed and the underemployed in approximately 800 areas designated
by the U.S. Department of' Commerce as economically depressed. The training
program, which is a cooperative undertaking by the Departments of' Labor,
Commerce, Agriculture, Health, Education, and Welf'are, and other Federal
agencies, is a part of' the area's overall development program, planned by local
citizen committees. Short intensive courses, given mainly to unemployed adults,
are geared directly to local job opportunities. Subsistence is paid up to 16
weeks at the State's average unemployment compensation rate during the train­ing
period. On-the-job and in-school training may also be of'f'ered.
By the end of' June 1962, a total of' 9,074 persons had been authorized f'or
training, with 6,492 actually enrolled in training courses. Programs were
centered in urban and rural areas of' serious unemployment--in Pennsylvania,
West Virginia, Kentucky, and Michigan. Most of' the training was f'or existing
job vacancies, but some was f'or new jobs created through ARA loans.
-7-
1962 Manpower Development and Training Act
A newer and broader training program is provided under the Manpower
Development and Training Act of 1962. This program, which may be carried on
in any area, offers training in a wider variety of skills and for a longer
period--up to a year--for the unemployed and the underemployed. Training is
given for occupations in which there is a "reasonable expectation of employ­ment"--
first, in the local labor market, and second, in other sections of the
State.
Provisions include on-the-job and in-school training programs. Travel
and living allowances are provided for unemployed heads of households with
three years'work experience and for unemployed youths 19 to 22 years of age.
Job Training and Rural Areas Development
Many rural persons need job training. The longtime objective of better
living for rural people requires increased income, often through new jobs and
job training. For this reason, the overall economic development programs of
local Rural Areas Development committees often include plans for creating new
local job opportunities and for training and retraining workers.
During 1962, 258 persons were trained for agricultural occupations under
the ARA. Rural people were trained also for jobs in business and industry.
Under the Manpower Development and Training Act, members of farm families with
less than $1,200 annual net family income are considered "unemployed," and
therefore eligible for benefits to the unemployed.
Training for women
Many women have received t raining under these programs. Women represented
37 percent of the ARA trainees during the period November 1961 to June 1962.
Of those trained, 42 percent had been unemployed over a year. Most of them
(82.5 percent) had 9 to 12 years of education. About 20 percent were under
20 years of age; 44 percent 20-34; 23 percent 35-44; and 12 percent over 44
years old.
Many of the younger women were acquiring greater proficiency in clerical
courses, and the older women brushing up former skills or acquiring new ones
to reenter the labor market.
--Irene H. Wolgamot
-8-
FAMILY INCOMES AND BUYING POWER, 1944-61
Median money income (before taxes) of U.S. families rose to $5,700 in
1961, according to the Bureau of Census. (See table and chart.) Approxi­mately
a third of families had incomes below $4,000, a third received $4,000
to $6,999, and a third had $7,000 or more. !/ At the top were 5 percent with
incomes of $15,000 or more. Families living on farms continued to have an
average money income amounting to about half that of urban and rural nonfarm
families ($3,241 compared with $5,924).
Median money income (before taxes) of U.S. families
Median income Percentage increase
Year
over previous year
Current 1960 Current 1960
dollars dollars !I dollars dollars
1944 ................... 2,533 4,257 ~ ~
1945 ................... 2,621 4,311 3 l
1946 ................... ~ ~ y y
1947 ................... 3,031 4,015 ?/ ?/ 1948 ................... 3,187 3,920 5 -2
1949 ................... 3,107 3,860 -3 -2
1950 ................... 3,319 4,082 7 6
1951 ................... 3,709 4,224 12 3
1952 ................... 3,890 4,337 5 3
1953 ................... 4,233 4,683 9 8
1954 ................... 4,173 4,596 -1 -2
1955 ................... 4,421 4,885 6 6
1956 ................... 4,783 5,205 8 7
1957 ................... 4,971 5,227 4 0
1958 ................... 5,087 5,207 2 0
1959 ................... 5,417 5,505 6 6
1960 ................... 5,620 5,620 4 2
1961 ................... 5,737 5,675 2 l
!/ Adjustment for price change by use of Consumer Price Index,
1957-59=100.
~ Comparable data not available.
Source: U.S. Bureau of the Census, Current Population Reports,
Series P-60, Nos. 38, 37, and 30.
!/ The percentages of families were 31, 32, and 37, respectively.
-9-
Data on family incomes during the previous year have been collected each
spring for many years by the Census Bureau from a large sample of households
(26,000 in 1962). These represent the civilian noninstitutional population
and members of the Armed Forces living off post or with their families on post
in the United States. The income data cover money income only, before deduc­tions
for taxes, which means that free rent, home-produced food, and like
items are not included. ~ Money income includes money wage or salary income,
net income from self-employment, and income other than earnings, such as net
rents, interest, dividends, social security benefits, pensions, and public
assistance or other governmental payments. The families included are groups
of two or more related persons living together. Family income combines amounts
received from these sources by all family members during the calendar year.
Average family income in 1961 was 2 percent higher than a year earlier.
However, the 1 percent rise in consumer prices meant that income in constant
dollars rose 1 percent. In contrast, income increases in constant dollars of
6 percent or more over the previous year occurred in 1959, 1956, 1955, 1953,
and 1950. Declines of 2 percent took place in 1954, 1949, and 1948.
•
$ Thousands
5 - 4
3
2
1
0
MEDIAN MONEY INCOME (BEFORE TAXES)
OF U.S. FAMILIES
----- 1960 dollars .,""'* ----­,."'
.;-'. ,.~ .... _____ ,. ___ ,..,
Current dollars
1950 1955
Source: Bureau Of the Census .
1960
2/ See "Which Family Income?", Family Economics Review, pp. 8-10, September
l9b2 for comparison with definitions used in other income series.
-10-
The long-run rise in income is shown in the table and chart. Median
income in current dollars more than doubled from 1944 to 1961, with a rate of
growth that averaged 4.9 percent a year. Since consumer prices increased 70
percent, family income in constant dollars increased a third. Its rate of
growth averaged 1.7 percent a 'year.
A family on a fixed income during this period would find itself in a
progressively worsening position. By 1961, it could buy only 59 percent as
much goods and services as it could in 1944 because of price increases . But
its status in relation to average income would be only 44 percent as great as
it was in 1944 because of increases in average income.
--Virginia Britton
THE PRESIDENT'S COMMISSION ON THE STATUS OF WOMEN
CONSIDERS NEW AND EXPANDED SERVICES
The President's Commission on the Status of Women was established by
Executive Order December 14, 1961,to examine the rights and needs of American
women and to make recommendations that will help women assume their full
partnership in our democracy. The President asked that a broad range of topics
be studied covering employment policies and practices of the Federal Government
and of those companies under Federal contract; effects of Federal social in­s
urance programs and tax laws on the net earnings and other income of women;
appraisal of Federal and State labor laws; political, civil and property
r i ghts; and new and expanded services that may be required for women as wives,
mothers, and workers, including education, counseling, training, home services,
and arrangements for care of children during the day.
A home economist has been detailed from the Department of Agriculture to
the Commission to assist in drawing up recommendations relating to the last­mentioned
group of topics--new and expanded services. Home economists working
with community programs will be concerned with these recommendations, and may
have suggestions to offer. The Commission will welcome accounts of going
programs or plans for them.
As women assume more responsibility for citizenship and use their talents
in gainful employment they will require services to help them in their home­making
and care of children. Equally important will be the need for counsel­ing
i n home management, family relations, vocational guidance , continuing
education and use of leisure to refresh and recreate. Counseling services
are needed for women who are heads of families and their sole support; for
mothers who are returning to employment after many years devoted to full-t
ime homemaking; for mature women who have never worked before but now wish
t o do so; for young homemakers whose homes of the future will be different
from t he ones in which they grew up; for women who do not wish paid employment
but are eager to find a way to use their talents in community enterprises.
-11-
Although recommendations will be made by the Commission, the local com­munity
is the place where the services go into action, and how and when they
do depends upon local initiative. When a program stems from the Federal or
State level it needs the involvement of local citizens if it is to be effective
in meeting the needs of the community. Many community groups are surveying
the programs of service clubs, private and public agencies and institutions in
their areas, and getting the opinions of leaders concerning needs relating to
the rapidly changing social patterns .
Some groups are organizing after-school programs for children of working
mothers. Another approach is to start with a parent education program so that
mothers still at home with preschool children will work toward obtaining
services they will want if and when they decide to seek outside work.
Many community groups are concerned about the dearth of household workers
and are trying to find ways to recruit and train women--both young and older,
mature women--for housekeeping occupations. In order to attract employees,
they are developing part-time work specialties for women who may prefer to
give a few hours at a time to several homes rather than full-time service to
one family. Care of clothing, meal preparation, and personal care of the aged
are examples of such specialties.
Raising the status of household occupations is of basic importance if arty
headway is to be made in this field . Home economists can help in setting
standards of work and in training workers . They can work with women's organi­zations
in helping women who employ household help think through modern house­keeping
needs and what can be reasonably expected of trained and experienced
workers .
The President asked the Commission on the Status of Women for construc­tive
action. Although the focus is on women's needs the measures being con­sidered
will benefit the entire community through its homes, and thus the
welfare of the Nation. The Commission will send its recommendations to the
President in October 1963. In the meantime, more information will be gathered
together that will point up needs and practical methods for coping with them.
--Margaret M. Morris
New Federal Trade Commission rules went into effect in January, requiring
that consumers be informed of the true composition of shoes, in labels and
advertising. "Leather" and other terms suggestive of leather may be used only
when the shoes are made of top grain leather (except heels, stiffening, and
ornamentation), or when they are mostly leather and the label or ad states
clearly what parts are leather . Shoes of split, ground, pulverized, or
shredded leather must be so labeled. No coined name--such as "Duraleather"-­may
be used that would convey the impression that shoes are of a certain kind
of material when they are not.
-12-
CHANGING PATTERNS IN LIFE INSURANCE y
The type of life insurance U.S. families buy has been changing somewhat
during the past decade as needs and circumstances changed. Ordinary life
insurance (including straight life, limited payment life, endowment, term,
family, and other combination policies) bought by individuals to protect
families against various hazards made up 58 percent of all life insurance in
force in the United States in 1961, down from 67 percent in 1945. (See chart.)
Group life insurance (mainly regular term insurance) issued through employers,
unions, professional associations and other groups, 'represented about 30 per­cent
of the total in 1961 and 15 percent in 1945. Credit life insurance,
almost unknown in 1945, grew with increasing use of consumer credit and ac­counted
for about 5 percent in 1961. This is the type that pays off the
balance due on a loan if the borrower dies.
Industrial life insurance, issued in small amounts for modest premiums
paid on a weekly or monthly basis, has decreased as a proportion of the total
during the period. About 18 percent of all life insurance coverage was this
type in 1945 compared with 6 percent in 1961.
Although ordinary life insurance represents a smaller share of total
coverage now than in 1945, its share is still much larger than that of any of
the other three types. The number of ordinary life policies in force grew
steadily, doubling in the 16 years. But group insurance and credit insurance
more than kept pace, the former tripling and the latter increasing even more
sharply in number of policies. Moreover, the size of the average group policy
increased by 116 percent, compared with the ordinary policy's 79 percent. The
figures below show how the average sizes of the four types of policies changed
dollarwise:
Type of insurance:
Ordinary ........••.......•
!}roup .................... .
Credit .......•............
Industrial .•.•.•.••..•.•..
Average size policy
in force
1945
$2,100
1,930
170
270
1961
$3,760
4,160
740
4oo
Industrial life insurance policies outstanding have leveled off then
dropped since 1952. There were fewer such policies in 1961 than at any time
during the period 1945-61, but still more than of the other three kinds of
life insurance. The decreasing popularity of industrial insurance is probably
due in large part to rising income levels, the increasing importance of group
y Adapted from Life Insurance Fact Book for 1962, Institute of Life
Insurance.
-13-
LIFE INSURANCE IN FORCE
Percent of $ coverage
6o
40
20
Ordinary
Group
~,. •• •• ~·
,.,... ..• •
v• .... ····-·. ..... ~
............... .! ••.
····~ Industrial ----............. -..........__.....__ -- Credit --------·- 0 ~~-~-~-~------­---~------~~
1950 1960
Millions of policies
.,.,.,.. - -.....__.
,...-.- Industrial '
90
60
30
O L-------~-------L--------7-~
1950 1960
Source: Institute of Life Insurance.
insurance, and the role of the Government's social security program in provid­ing
protection for workers under Old Age, Survivors, and Disability Insurance.
The figures in the charts and text refer to life insurance held by resi­dents
of the United States whether issued by U.S. or foreign life insurance
companies.
--Lucile F. Mork
-14-
OUTDOOR RECREATION AND LEISURE-TIME ACTIVITIES OF ADULTS
Prospects of a growing U.S. population with increasing amounts of leisure
time through shorter workweeks, more paid vacations, and earlier retirement
emphasize the need for planning ·ways of increasing recreation facilities.
Recognizing this need, Congress in 1958 established an Outdoor Recreation
Resources Review Commission to determine the amount, kind, quality, and loca­tion
of outdoor recreation resources that would be required by the years 1976
and 2000, and to make recommendations for action in this area. The Commission
completed this large undertaking in 1962 and the results of its work have been
made available in 27 publications covering all phases of outdoor recreation.
One study done under the auspices of the Commission is based on inter­views
with 2,750 men and women, a representative sample of household heads and
their spouses in this country. These people were questioned about their
participation during a year in eleven types of outdoor activities. Table l
lists the activities, ranked in order from those in which many took part to
those in which only a few did. As might be expected, activities that take
little preparation, skill, or exertion--such as automobile riding for pleasure,
and picnics--are at the top of the list, while those requiring more skill,
e£fort, interest, or expense--like skiing and horseback riding--are at the
bottom.
TABLE 1.--Adults engaging in specified outdoor activities in a year,
by frequency
Frequency of engaging in
Activity
the activity 1
5 or more times l to 4 times Not at all
Percent Percent Percent
Automobile riding for sightseeing
and relaxation ...................... 47 24 27
Picnics ............................... 31 35 33
Outdoor swimming or going to a beach .. 26 19 54
Fishing ............................... 20 18 61
Boating and canoeing .................. 12 16 71
Hunting ............................... 9 8 82
Hiking ................................ 8 ll 79
Camping ............................... 6 9 84
Nature or bird walks .................. 6 8 84
Horseback riding ...................... 3 4 92
Skiing and other winter sports ........ 2 4 93
~ Includes l or 2 percent in each activity from whom frequency was not
ascertained.
-15-
Almost everybody (89 percent of those interviewed) engaged in some out­door
activity. Approximately two-fifths took part in at least four activities,
and one-third in two or three. The distribution was:
Number of outdoor activities Percent of adults
engaged in:
8 or more . . . . . . . . . . . . . . . . . . . . . . . 4
4-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2 or 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 34
l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
None . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Not ascertained................. 1
Participation in outdoor recreation increased with income up to the
$7,500 to $10,000 level where it declined slightly. Men engaged in such
activity more than women, younger adults more than older ones, and better­educated
people more than the less-educated. As far as overall participation
in outdoor recreation was concerned, city dwellers were about the same as
rural residents, and people in one region were about the same as those in
another. However, distinct regional differences were noted for certain
activities. For example, swimming and boating were especially popular in
the Northeast, fishing in the South, and hiking and camping in the West.
Picnics were more common in the West and North Central Regions than in the
South and Northeast.
Vacation and weekend travel patterns were also investigated. During the
year, 43 percent of the adults went on at least one vacation trip and 12 per­cent
took more than one. (A "vacation trip" included any trip of more than
three days which the person regarded as a vacation.) Only 23 percent of the
adults with incomes under $3,000 reported a vacation trip, but the proportion
increased steadily as incomes rose, and was 73 percent for the group with
$101 000 or more. The youngest (18 to 24 years) and the oldest (65 and over)
adults were least likely to have taken trips; these are also the ones most
likely to have low incomes.
Half of the vacation trips involved traveling less than 500 miles from
home, and half lasted 7 days or less. About a fifth of the people who took
vacation or weekend trips visited a Federal or State park or recreation area
while away. Park visits were especially popular with vacationers in the
Western region, and with young couples and families with children 5 to 17
years old.
Answers to questions about usual leisure-time activities in general-­outdoors
or otherwise--showed that TV viewing topped the list by a wide margin
for both men and women. (See table 2.) Then came visiting with friends and
relatives, reading, and gardening--in that order. Active sports were mentioned
by 55 percent of the men, but only 31 percent of the women. The most popular
active sport was fishing, reported by 18 percent of the adults. The average
number of leisure-time activities mentioned by men and by women was 4.6.
-16-
TABLE 2.--Leisure-time activities o~ men and women
Activity
Woking at W •..•••.•...•..••..••.....••••••...••.
Visiting with ~riends 1 relatives ••.•••...•.•.•.••.
Reading .......................................... .
Gardening, work in the yard ••..•.•••.•••••••••••..
Driving ~or pleasure •.•••.•.•....•...•.•.•.....•••
Participating in clubs, organizations,
church work .................................... .
Active sports .................................... .
Workshop or homemaking hobbies ..•...•.•.....•.•.•.
Going to plays, concerts, lectures, museums •••.•..
Photography ...................................... .
Percent
participating
regularly
Men Women
83 79
63 68
58 68
57 56
47 45
42 48
55 31
30 40
14 20
14 10
Much more information is given in the complete report: "Participation in
OUtdoor Recreation: Factors M~ecting Demand Among America.fl Adults." This is
OUtdoor Recreation Resources Review Commission Report No. 20 ~or sale by the
Superintendent o~ Documents, U.S. Government Printing Office, Washington 25,
D.C. ~or 50 cents.
HIGHLIGHTS OF THE 1962 DRUG AMENDMENTS
The Drug Amendments of 1962 were a major advance in the cause of safe and
e~~ective drugs ~or consumers. They made important changes and additions to
the provisions of the Federal Food, Drug and Cosmetic Act. These amendments
deal mainly with drugs sold only on prescription and with "new drugs. " (A new
drug is one which is not generally recognized by qual~ied experts as sa~e and
e~ective ~or the uses recommended in its labeling.) Some of the major pro­visions
are summarized here:
• New drugs must be proved effective as well as s~e before they can be
approved for marketing. Before 1 only s~ety clearance o~ new drugs
was required.
• Previously cleared new drugs may be withdrawn from the market, after
opportunity ~or a hearing is given the manufacturer, where tests show
that the drugrs s~ety is not established or will not be effective ~or
its intended use.
-17-
• All manufacturers must now have adequate controls--test procedures and
checks--with trained personnel and proper facilities, to assure the
reliability of drugs.
• The Food and Drug Administration is given expanded authority to inspect
plants producing prescription drugs, establish good manufacturing
practices (to insure production of drugs with adequate quality con­trols),
and obtain reports on adverse drug reactions.
• FDA can establish an official name for a drug when this is desirable.
Drug labels must bear the established name of the drug and, for pre­scription
drugs, the quantity of each active ingredient.
• A new drug may not be approved for marketing if it is found that the
proposed labeling is false or misleading. A drug previously approved
may be withdrawn from the market whenever, upon reevaluation in the
light of new evidence, its labeling is found to be false and mislead­ing
and not corrected upon notice.
• Prescription drug advertisements must include a brief summary of side
effects and conditions under which the drug shouldn't be used. The ad
must also give the established name and formula.
• All antibiotic drugs used to treat human disease are subject to batch­by-
batch testing and certification of safety and effectiveness by FDA.
Previously only a few were.
• FDA can prevent testing of drugs on humans unless and until specified
safety conditions, including animal testing, are met.
• Manufacturers are required to get assurance that the patient's consent
will be obtained if experimental drugs are to be used, unless this is
not feasible or contrary to best interest of patient.
WORK EXPERIENCE OF U.S. WIVES IN 1961 y
About 43 percent of all married women in the United States held paying
jobs in the year 1961. However, many of these jobs left the women plenty of
time for homemaking and personal activities because they were not 8-to-5,
5-day-a-week, year-round work away from home.
The Bureau of Labor Statistics, which reports regularly on the employment
of men and women, classifies jobs as "full-time" or "part-time," defined as
follows: A "full-time 11 job is one that provides the person 35 or more hours
y Based on Special Labor Force Report, No. 25, U.S. Department of Labor,
Bureau of Labor Statistics, December 1962.
-18-
of work the majority of the weeks he or she works; a "part-time" job provides
less than 35 hours of work the majority of the weeks worked. Wives with some
work experience in 1961 formed three groups about equal in size, based on the
amount of time they were employed:
One-third had full-time jobs all year--or at least for 51 weeks.
One-third had full-time jobs for less than 51 weeks; about half of these
had work that lasted not more than 26 weeks.
One-third had part-time jobs; some of these jobs may have lasted all year,
others only part of the year.
Approximately half of the wives under 25 years of age had some gainful
employment in 1961. Not quite as many (45 percent) of the women between the
ages of 25 and 44 ana 45 and 64 worked, but more of those who did had year­round,
_ full-time job~ . .. After age 65 only 12 percent were employed, most of
them less than full tiille.
Since so many wives are jobholders only part of the year, the number
employed at all during a 12-month period is considerably larger than the number
employed at any one time. Although 43 percent of U.S. wives had some gainful
employment in the year 1961, for example, only 30 percent were employed the
week in March 1961 covered by the monthly labor force survey. Periodic reports
on current levels of employment and unemployment quote monthly rather than
annual figures.
--Emma G. Holmes
ESTIMATED COST OF l WEEK' S FOOD AT HOME--U.S .A. AVERAGE AND FOUR REGIONS
This issue of Family Economics Review presents January 1963 estimates of
the retail cost of food for the USDA food plans for the U. S.A. and for four
regions--the Northeast, the North Central, the South, and the West . (See
tables l to 3, pages 19 to 21.) Also, table 4 on page 22 presents January 1963
costs of the Southern adaptation of the low-cost plan. An explanation of the
development of the food plans and the cost estimates for the U.S.A . is given
in Home Economics Research Report No. 20, Family Food Plans and Food Costs,
recently issued for the use of nutritionists and other leaders who develop and
use food plans. Single copies are available from Consumer and Food Economics
Research Division, Agricultural Research Service, U.S. Department of Agri­culture,
Washington 25, D.C.
-19-
Table 1 .--Cost of l Week's Food at Home l/ Estimated for Food Plans
at Three Cost Levels, January l9b3--U .S.A. Average
Sex-age groups
FAMILIES
Family of two, 20-34 years~ ..•..........
Family of t wo, 55-74 years gj ............ .
Family of four, preschool children 1/ .... .
Family of four, school children~ ....... .
INDIVIDUALS 2)
Children, under l 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 1 20-34 yeCJ.:rs .•.••....•....••••..•.....
3 5-54 years ....•..•••....••........•••..
55-74 years •.•.•.•.••....••...••.••.•...
75 years and over ..•••...••..••.•...••..
Low-cost
plan
Dollars
14 .10
12.60
21.10
24.30
3.10
3.80
4 . 50
5.30
6.20
6 . 50
6 .60
7-10
8 .40
5.50
5.40
5.10
4.90
6 .90
8 .70
7-30
6.80
6.40
6 .20
Moderate - Liberal
cost plan plan
Dollars Dollars
19 .40 21.80
17 .40 19.60
28.10 32.10
32. 80 37-30
3-90 4 .20
4 .70 5.40
5 .80 6 .90
6 .90 7 .90
8 .30 9.60
8 .90 10.20
8 .80 10.10
9 .80 11 .20
11 .40 12.90
7 -70 8 .70
7-50 8 .50
7.00 8 .00
6 .60 7-50
9.00 10.00
11 .10 12.30
9 .90 11.10
9 .20 10. 30
8 .80 9.80
8 .40 9-30
!/ These estimates were computed from quantities in food plans published
in Home Economics Research Report No. 20, Family Food Plans and Food Costs .
The cost of the food plans was first estimated by using the average price
per pound of each food group paid by nonfarm survey families at three selected
income levels in 1955. These prices were adjusted to current levels by use
of Retail Food Prices By Cities released periodically by the Bureau of Labor
Statistics. ·
g/ Ten percent added for family size adjustment. For derivation of factors
for adjUstment, see HERR No. 20, appendix B.
3/ Man and woman 20-34 yearsj children, 1-3 and 4-6 years.
;/. Man and woman 20-34 yearsj children, 7-9 and 10-12 years.
~ The costs given are for individuals in 4-person families . For individ­uals
in other size families, the following adjustments are suggested:
1-person--add 20 percent; 2-person--add 10 percent j 3-person- -add 5 percent;
5-person--subtract 5 percent; 6~or-more-person--subtract 10 percent.
Table 2.--Cost of 1 Week's Food at Home !/ Estimated for Food Plans at Three Cost Levels,
January 1963, for Northeast and North Central Regions
Sex-age groups
FAMILIES
Family of two, 20-34 years g/ .......... .
Family of two, 55-74 years g; .......... .
Family of four, preschool children J/ .. .
Family of four, school children~ ..•...
INDIVIDUALS 2}
Children, under 1 year ......•.••.••••.••
1-3 years ............................ .
4-6 years ............................ .
7-9 years ............................ .
10-12 years .......................... .
Girls, 13-15 years .•..•.•.....•......•..
l6-l9 years .......................... .
Boys, 13-15 years •....••.......••.•••...
16-19 years .......................... .
Women, 20-34 years ..................... .
35-54 years .......................... .
55-74 years .......................... .
7 5 years and over .................... .
Pregnant ............................. .
Nursing .............................. .
Men~ 20-34 years ....................... .
35-54 years .......................... .
55-74 years .......................... .
7 5 years and over ..••.•...•.•.........
Northeast
Low-cost 'Moderate-, Liberal
plan cost plan plan
North Central
Low-cost
plan
Moderate­cost
plan
Liberal
plan
Dollars Dollars 1 Dollars 1 Dollars Dollars 1 Dollars
16.40
14.50
24.00
27.90
3.40
4.10
5.00
6.00
7.00
7.40
7.40
8 .10
9.60
6.40
6.20
5.80
5.60
7.80
9.70
8 .50
7.90
7.40
7.20
21.30
19.10
30.80
36.00
4.10
5.10
6.30
7.50
9.10
9.70
9.60
10.70
12.50
8.50
8 .20
7.70
7.20
9.80
12.10
10.90
10.20
9.70
9.30
23.30
20.80
34.00
39.70
4.30
5.60
7.20
8.40
10.10
10.80
10.60
11.80
13.70
9.30
9.10
8.50
8.00
l0.60
13.00
11.90
11.00
10.40
10.00
15.10
13.40
22.30
25.90
3.20
3.90
4.70
5.60
6.60
6.90
7.00
7.60
9.00
5.90
5.70
5.40
5.20
7.30
9.20
7.80
7.20
6.80
6.60
18.60
16.80
27.20
31.70
3.80
4.60
5· 70
6.70
8.10
8.60
8.60
9.50
11.10
7.40
7.20
6.80
6.40
8.80
10.80
9.50
8.90
8.50
8.10
21.30
19.00
31.40
36.40
4.10
5.30
6.70
7.70
9.30
9.90
9.80
10.90
12.60
8.50
8.30
7.80
7.30
9.80
12.10
10.90
10.00
9.50
9.10
!/-L/ See footnotes of table 1 on page 19.
I
1\)
0
I
Table 3.--Cost of l Week 1s Food at Home ~ Estimated for Food Plans at Three Cost Levels,
January 1963, for Southern and Western Regions
Sex-age groups
FAMILIES
Family of two, 20-34 yea~s ~ .•........
Family of two, 55-74 years gj ......... .
Family of four, preschool children 1/ ..
Family of four, school children~ ....•
INDIVIDUALS '2)
Children, under l 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 ......................... .
5 5-74 years ......................... .
75 years and over ................... .
Pregnant ............................ .
Nursing ............................. .
Men, 20-34 years •..................•...
35-54 years ......................... .
55-74 years ......................... .
75 years a.n.d over ................... .
South West
Low-cost 'Moderate-, Liberal I Low-cost 'Moderate-, Liberal
plan cost plan plan plan cost plan plan
Dollars
12.20
11.00
18.40
21.20
2.80
3.40
3.90
4.70
5.40
5.70
5.80
6.20
7.20
4.80
4.70
4.40
4.30
6.10
7.70
6.30
5.90
5.60
5.40
Dollars 1 Dollars 1 Dollars
16.70
15.20
24.50
28.60
3.50
4.20
5.10
6.10
7.30
7.70
7.70
8.40
9.80
6.70
6.50
6.20
5.80
8.00
9.80
8.50
8.00
7.60
7.30
19.60
17.60
28.90
33.40
3.90
4.90
6.20
7.10
8.50
9.00
9.10
9.80
11.30
7.90
7.70
7.30
6.80
9.10
11.10
9.90
9.10
8.70
8.40
16.00
14.30
23.70
27.50
3.40
4.20
5.00
6.00
7.00
7.30
7.40
8.00
9.50
6.30
6.10
5.70
5.50
7.80
9.80
8.20
7.70
7.30
7.00
Dollars 1 Dollars
20.10
18.00
29.30
34.30
4.10
4.90
6.10
7.30
8.70
9.20
9.20
10.30
12.00
8.00
7.80
7.30
6.80
9.40
11.70
10.30
9.60
9.10
8.70
23.00
20.60
34.00
39.50
4.50
5.80
7·30
8.40
10.20
10.80
10.70
11.80
13.70
9.20
8.90
8.40
7.90
10.70
13.20
11.70
10.90
10.30
9.80
~-2/ See ~ootnotes o~ table l on page 19.
I
f\)
I-'
I
-22-
Table 4.--Cost of l Week's Food at Home, Estimated for Special
Adaptation of Low-Cost Plan for the South, January 1963
Sex-age groups
FAMILIES
Family of two, 20-34 years g/ ..... .
Family of two, 55-74 years gj ..... .
Family of four, preschool children J/
Family of four, school children ~ •
INDIVIDUALS 2/
Children, under l year ••..•.•......
1-3 years .•.•...•.......•.....•..
4-6 years .•.•.••..•..............
7-9 years ....................... .
10-12 years •••....•......•..•.••.
Girls, 13-15 years •.•......•.•.....
Special
low-cost
plan y
Dollars
11.60
10.20
17.50
20.20
2.70
3.20
3.80
4.50
5.20
5.60
Sex-age groups
INDIVIDUALS--Con.
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 years ••.••...
75 years and over ••
Special
low-cost
plan y
Dollars
5.60
5.80
6.90
4.60
4.50
4.10
4.00
6.00
7-50
5-90
5-50
5.20
5.00
Y Based on ~uantities suggested in table 4 on page 9, Home Economics
Research Report No. 20, Family Food Plans and Food Costs.
g/-2/ See footnotes of table l on page 19.
CONSUMER PRICES
Table 1 .--Index of Prices Paid by Farmers for Commodities Used in Family Living
(1957-59 = 100)
February 1962j June 1962-February 1963
Item Feb. June July I Oct. Nov. Dec. Jan. Feb.
1962 1962 Aug. Sept.
1963
All commodities ............ 103 103 103 103 103 103 103 103 104 104
Food and tobacco ......... -- 103 -- -- 103 -- -- 103 -- --
Clothing ................. -- 107 -- -- 108 -- -- 109 -- --
Household operation ...... -- 105 -- -- 105 -- -- 106 -- --
Household furnishings .... -- 97 -- -- 97 -- -- 97 -- --
Building materials, house. -- 100 -- -- 100 -- -- 100 -- --
Auto and auto supplies ... -- 101 -- -- 100 -- -- 103 -- --
Source: U.S. Department of Agriculture, Agricultural Marketing Service.
-
-23-
Table 2.--Consumer Price Index for City Wage-Earner and Clerical-Worker Families
(1957- 59 = 100)
January 1962; May 1962-January 1963
Item Jan. May June July Aug. Sept. Oct. Nov . Dec. Jan.
1962 1962 1963
All i terns ..•..........•.••. lo4 105 105 106 106 106 106 106 106 106
Food ••••....•.......•.... 102 103 104 104 lo4 105 104 104 lo4 105
Apparel .•.•..•..•........ 102 103 103 103 102 105 105 104 lo4 103
Housing ......••.•...•.•.. lo4 105 105 105 105 105 105 105 105 105
Rent ................... 105 106 106 106 106 106 106 106 106 106
Gas and electricity •... 108 108 108 108 108 108 108 108 108 108
Solid fuels and fuel oil 104 100 99 100 100 101 102 104 105 105
Housefurnishings •••.... 99 99 99 99 98 99 99 99 99 98
Household operation •••. 106 107 107 108 107 108 108 108 108 109
Transportation .•.••.•..•• 106 107 107 107 107 108 108 108 108 107
Medical care ............. 113 114 114 115 115 115 115 115 115 116
Personal care •..•.••..... 106 106 106 107 107 107 107 107 108 107
Reading and recreation ••• I 108 110 109 110 110 110 110 110 110 110
Other goods and services . 105 105 105 1 106 106 106 106 106 106 106
I I
Source: U.S. Department of Labor, Bureau of Labor Statistics.
INDEX OF ARTICLES APPEARD"G MARCH-DECEMBER 1962
Page Issue
FOOD
Consumer Practices in Handling and Storing Commercially
Frozen Foods .•.•••••.•....••...•.••.....•••....•....
Dollar Values in Nutrition •.•........••.•..•..•....•..
Dual Grading for Beef Goes on Trial ..•..•..•.........•
Estimated Cost of l Week 1s Food--U.S.A. Average and
Four Regions ..••........•........•.•..••.•.•.•..•...
Facts About the U.S. Shrimp Supply .•••.•....••••.....•
Food Distribution Programs of the Department of
Agriculture •.•...•.••.•........•.....•.........••...
Ham Labeling .•.•.............•...•...•................
Outlook for Food Supplies and Prices in 1963 ..••.•...•
Teaching Families How to Use USDA-Donated Foods •......
The Food Stamp Plan Expanded .•......•...............•.
The Food Stamp Program and I t s Effect on Family Diets .
Trends in the Consumer Price Index for Food During the
Past Decade ••.....••••••....•••.•...........•...•...
3
16
15
18
19
7
13
6
11
21
9
12
September
September
June
March
June
March
September
December
September
September
June
June
-24-
INDEX OF ARTICLES .APPEARING MARCH-DECEMBER 1962
(Continued)
CLOTHING AND TRXTILES
Clothing Expenditures of Employed Wives ••.••...•.•.•.
Disinfectants for Use in Home Laundering •.•••••......
New Developments in Functional Clothing Fabrics •.•...
Outlook for Supplies and Prices of Clothing and
Textiles in 1963 ..••...•..•..•........•.......• · · · ·
FAMILY FINANCE
Estimating Net Income of Working Wives •.......•......
Expenditures for Recreation .•..•••..•.....••. · ....... .
Hospital Bills Paid by Insurance ..•...•....•.••••....
National Survey of Consumers' Expenditures ••.•.......
Paid Services Used by Employed Homemakers in Georgia
an.d Ohio .......................................... .
Personal Consumption Expenditures, 1961 •.•.•••..••.•.
Purchasing Power of Factory Wages ···················~
Which Family Income? ....••...•••.....•...•...•••••..•
HOUSING AND HOUSEHOLD EQUIPMENT
Multiple Family Housing Increasing ..•.•.•.•••......•.
Outlook for Housing, Household Furnishings, and
Equipment in 1963 •..••.•...•..••........•...••.....
Telephones, Home Freezers, and Automobiles on Farms ..
MISCELLANEOUS
Current and Foreseeable Trends in Rural Population ...
Index of Articles Appearing March-December 1961 ..•...
National Economic Outlook for 1963 •••....•.•.•.......
New Reference Base Period for Indexes of Consumer
Prices ............................................ .
Outlook for Family Living in 1963 •....•••............
President Appoints Consumer Advisory Council ........ .
Public Health Service Grants for Community Health
Services and Facilities •.•...........••..••....••..
Rural Areas Benefit from Community Facilities Programs
Page
18
3
5
10
3
14
13
12
5
13
17
8
18
17
14
26
26
3
24
4
7
18
16
Issue
September
June
March
December
March
September
September
March
June
September
June
September
June
December
March
December
March
December
March
December
September
March
March