U.S.A.’s SPENDING HABITS

Greymouth Evening Star, 29 May 1937, Page 13

U.S.A.’s SPENDING HABITS

NEW DEAL SCRUTINY

WASHINGTON, April 10.

How do Americans spend their money? What would they be likely to buy if they had more? President Roosevelt expects to have in hand shortly the answers to these questions, gleaned for a survey of the consumption habits of 300,000 “average” Americain families. The information -will be valuable to him and his relief aides in planning their new drive to expand the so-called consumption industries as opposed to the durable industries. Results of the study to date were given to the President to-day at a conference participated in by Dr. Charles E. Merriam of the National Resources Committee; Henry A. Wallace, Secretary of Agriculture; Henry Morgenthau, Secretary of Treasury; Harold L. Ickes, Secretary of the Interior; Frances Perkins, Secretary of Labour; Harry L. Hopkins. WPA Administrator; Gov. Mariner S. Eccles, of the Federal Reserve Board; Isadore Lubin, chief of the Bureau of Labour Statistics, and Dr. Bearsley Rumi of the National Resources Committee.

Data gathered by the Bureau of Labour Statistics in cities and by the Bureau of Home Economics in rural areas is to be turned over to the national resources board for coordination. The completed report is expected to give a cross-section of the spending habits of the country at the present time. It is expected to act as a guide to industry in planning its production as well as to the Government in plotting future stabilising measures.

The new study will be the first the national resources committee has tackled in the field of human resources. Heretofore it has confined itself to land, -water and mineral resources.

The study is expected to give authoritative answers to such questions as these:

How much of different types of food must be produced it all the people of the. country are to be well fed? How much clothing and what types do consumers buy when they have as little as 250 dollars a year to spend for all family needs, or as much as 2,500 or 5,000 dollars. At what wage level does a family buy a vacuum cleanei' or a washing machine ?

How do expenditures of farm families differ from those of urban families?

How many families save money? How many go into debt?

SOURCES OF INFORMATION

This comprehensive study of family living was begun with a WPA grant. The Department of Agriculture directed field work in 18 small cities, 132 villages and 13 farm areas in 63 counties and 22 States. The Bureau of Labour Statistics has supervised the canvassing in two metropolitan areas, six large cities, 16 middle-sized cities and 10 small cities. When put together by the National Resources Committee, the two are expected to give income and expenditure patterns for families living in communities of different degrees of urbanization and representing different occupational groups, different income levels and different family types.

Field work has been completed and statisticians are now at work tabulating and interpreting the filled-in questionnaires.

Dr. Merriam told the President yesterday that the full report will be ready in June. He emphasised the importance it will have in the formulation of Federal relief plans for the future.

After he heard the report, the President instructed the heads of all Federal departments to aid the committee by turning over to the resources committee any information they may have on the subject.

Much light is expected to bo thrown on two questions important to future economic planning in the United States.

.1. What kind of a national income would the country have to have for everybody to have enough to eat ? 2. If ali incomes were raised to certain levels what would people tend to buv more of than otey do at present?