Page 4
THE BATTALION
MONDAY, MARCH 3, 1980
ALLEN
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2401 Texas Ave.
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Standard of living growth slows
United Press International
WASHINGTON — The Amer
ican standard of living — long consi
dered one of the wonders of the
world — is in trouble.
For the past century, each genera
tion of Americans — except during
the Great Depression — has become
accustomed to a standard of living
roughly double that of the genera
tion immediately before it.
Between 1890 and 1970 the na
tion’s output of goods and services
per person, adjusted for inflation.
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more than quadrupled, while aver
age number of working hours de
clined by 50 percent.
The average American income, af
ter taxes and inflation, has tripled
since the Depression of the 1930.
—The average American’s life ex
pectancy has increased by five years
since 1950.
—The percentage of families with
incomes below the poverty level was
halved, from 18 percent in 1960 to 9
percent in 1977.
—In 1950, somewhat more than
The average American income,
after taxes and inflation, has tri
pled since the Depression of the
1930s.
half the country ’s households owned
their homes. In 1977, 65 percent
did.
The two decades after World War
II saw a phenomenal burst of tech
nology in the American home.
In 1950, 9 percent of American
households had television. In 1979,
97.7 percent did.
In 1960, 15 percent of homes had
room air conditioners. In 1978, 55
percent.
The number of registered auto
mobiles has tripled since 1950 and
now amounts to slightly more than
one vehicle for each two Americans.
In 1960, American passenger cars
guzzled 41 billion gallons of gasoline.
By 1977, they had doubled this to 81
billion gallons, even after a slight re
duction in mileage per gallon.
With the coming of the jet air
plane, the distance flown by domes
tic airline passengers increased more
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than 20 fold between 1950 and 1978.
But Americans cannot take these
rising expectations for granted
forever.
In recent years the growth of
America’s material standard of living
appears to have slowed.
While during the 1950s and 1960s
it was rising rapidly by almost any
measure, whether it has risen at all in
the last few years depends on how
you measure it. And measuring it
isn’t easy.
“In the past year there has been a
substantial deterioration in the stan
dard of living of the average worker,’’
says Rudy Oswald, research director
for the AFL-CIO.
Last year, Oswald said, consumer
prices rose more than 13 percent,
but wages rose only 8 percent, so the
average worker was 5 percent worse
off in purchasing power.
The Labor Department’s Bureau
of Labor Statistics has tried since
1947 to keep track of the “real,
spendable earnings” — after federal
Last year, Rudy Oswald, re
search director for the AFL-
CIO, said, consumer prices rose
more than 13percent, but wages
rose only 8 percent, so the aver
age worker was 5 percent worse
off in purchasing power.
taxes and inflation — of the average
blue collar worker, representing ab
out three-fifths of the work force.
Its figures say that a worker’s pur
chasing power rose 23 percent in the
1950s and 13 percent in the 1960s
but declined 2 percent from 1970
through 1979 and fell 5 percent dur-
MANOR EAST 3
; MANOR EAST MALL
. 823-8300
****** *
ing 1979 alone.
But BLS itself says these figures
are misleading.
For one thing, they are based on
the taxes of a “typical” family that no
longer is typical — a working father,
nonworking wife and two dependent
children.
The Census Bureau says both hus
band and wife now work for a living
in half the nation ’s husband-and-wife
households.
Also, according to Dudley Young
of BLS, the wages measured by BLS
do not represent this hypothetical
“Whatever measure you use,
last year was terrible, ” says
Lawrence Chimcrine, chairman
of Chase Econometrics. "And
the performance over the last 5
or 6 years has been way below
what it was historically. ”
family. The average has been lo
wered by inclusion of part-time
workers and hy the huge influx of
women and teen-agers into the labor
force since 1960, many of whom
work for relatively low wages.
A third problem with the figures.
Young says, is that they adjust for
inflation by the Consumer Price In
dex. BLS and many private experts
believe that in the current economy
the CPI exaggerates inflation by
perhaps 2 percentage points.
Young believes the Commerce
Department’s monthly figures on
“real, disposable income” per person
are a better mirror of the standard of
living.
These cover all Americans, work
ing or not; all kinds of income includ
ing rents, dividends and pensions;
local as well as .federal taxes, and they
compute inflation by a different mea
sure (the personal consumption ex
penditures deflator) which many
consider more realistic than the CPI.
This real, disposable income per
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> gold jewelry, coins, etc.
> The Diamond Room
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iniii
person rose 29 percent in (lieIS
13 percent in the 1950s, 34pen]
in the 1960s and 24 percent
1970s. But its growth has si*
during the late 1970s, anditlj
percent during 1979.
“Whatever measure youi®|
year was terrible,” says Late
Chimcrine, chairman ofQiastL
no me tries. “And the perfont;
over the last 5 or 6 years hasC
way below what it was histork{
Still another measure oft
standard is the median incoil
American families, adjustedfotrf
tion. (Median means theren]
many families above as below,i
used to remove distortionscausf.
very high and very low income
11 rose 37 percent in the 1®<
percent in the 1960s, butonhl;
cent between 1970 and W,
latest figures.
Family income figures have!
seen in the light of what t
happening to the American fat
is getting smaller, decreasing!
an average of 3.54 persons in®
3.33 in 1978.
At the same time, therearer
workers per family. Both k
and wife worked for a living
pe rce nt of husband and-wife k.
in 1960. In 1979, itwaslSperc
Benner also notes that, win-
income housewives eamatwii
measured in the standard offe
“The product they lose by le
the household is not netted e
that. ”
While consumer prices rose
percent overall last year, lieo
lates that the prices of nect?
rose 17.6 percent — including
gy 37.4 percent, shelter lit
cent, food 10.2 percent and me:
care 10.1 percent.
Those four items comprise
thirds of the household bud;-
four out of five American k
Alperovitz said.
Going one step farther, Ch
ine says the discretionaryinco:
Americans — after they havek
these necessities, and adjust!::
inflation — fell in 1979 beta
lev el reached in 1973.
Union workers have donek
than non-union in this struggL
employment cost to businessd
ion employees rose 8.4 pent
fiscal 1979, according to the&E
on Wage and Price Stability-
that for nonunion workers ns
percent.
The picture isn’t one-side;
some ways, not measuredbync
the figures, Americans are bet
For example, a family tk
held on to a house during tk
three decades has madealars;
in wealth. In addition, the em:
ment is a little cleaner, thee
place safer.
AUTO INSURANCE
FOR AGGIES:
Call: George Webb
Farmers Insurance Group |
3400 S. College 8234
DRAPERIES PLUS
NEEDS SEAMSTRESSES!
Immediate employment
$3.10/hour plus. Hours negotiable.
Call 823-5688
Monday through Friday
8:30 a.m. to 4:30 p.m. ii2t3
JOB 'OPPORTUNITIES
THE ORIGINAL TEAM
CLEANING AGENCY
Wants reliable, energetic employees with phone
and car for residential or commercial cleaning.
$3.30/hour and up, plus travel
HOME CARE SERVICES
846-1905
112tfn
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for dishwashers, cooks,
fountaineers, and cashiers.
Pick up applications at
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in Culpepper Plaza
JOBS!
CRUISESHIPSI/SAILING EXPEDITIONS!/
SAILING CAMPS. No experience. Good Pay.
Summer. Career. NATIONWIDE, WORL
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Typing!! Reports, Dissertations, etc. ON THE
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NEXT REPORT CARD!
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Box 263, San Marcus, TX 78666
10311
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P.O. Box 1825
Uvalde, TX 78801
11315
1 ^ervJce'TPor All
Chrysler Corp. Cars
Body Work — Painting
HALSELL MOTOR
COMPANY INC.
Dodge Sales and Service Since 1922
1411 Texas Ave. . 823-8111
Now Taking Applications
For Cashiers and Hostesses
APPLY IN PERSON ONLY
At Ken Marlin’s
1803 S. Texas next to Sears
SPECIAL NOTICE
LOST
FREE: Lab-Shepherd mix puppies. Call 693-
6690. Illt3
PROBLEM PREGNANCY? Free abortion
counseling and referrals. Call (713) 779-
2258. ,.62tfn
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REWARD
Lost blonde male Cocker Spaniel puppy.
Last seen in vicinity of College Main and
Nagle. Has congenital birth defect.
NEEDS MEDICATION!
Please contact 846-5896 or 693-
7306.
11015
PREGNANCY TESTING
Counselling on all alternatives
and birth control methods.
Women’s Referral Center,
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846-8437
FOR RENT
Large quiet room. No bills. Graduate student
preferred. $150.00. 696-1296. Illt5
New! Room for rent. $115.00/month. Call 779-
9096. 109t5
Older home. NearTAMU. 3-bedroom, 2-bath.
Living room, dining room, fireplace. $500.
846-4929. 109t5
TEXAS A&M UNIVERSITY ATHLETIC
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RESIDENT ADVISOR POSITIONS
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QUALIFICATIONS: Resident advisor candidates must be senior or
graduate student classification with overall
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preferred but not necessary.
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APPLICATIONS
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4692
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$159 month. One bedroom from
$180 month. All bills paid except
electricity. No pets. Villa West
Apartments, south of Villa Maria.
Lorraine Peterson, manager. 822-
7772. i77tfn
MSC Great Issues in Cooperation with the Center
For Education and Research in Free Enterprise
will present
Nobel Prize Winning Economists
Milton Friedman
and
Paul Samuelson
speaking on
The Economic Responsibility
of Government”
£ L
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$75/month; $50 Deposit
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WESTERN VILLAGE
MOBILE HOME PARK
2001 Beck St.
Bryan 822-6912
113122
Tuesday, March 25
Rudder Auditorium
8:00 p.m.
Admission
Zone 1 Students $2.00
Others $3.00
Zone 2 Students $1.00
Others $1.50
Tickets on sale now in MSC Box Office