No. 774. Personal Wealth—Percent Share Of Top One Percent: 1922 To 1972 [Persons 21 years old and over. Data differ from those in table 775 because the tatter relate to all persons] Source: 1922-1956, Robert J. Lampman, The Share of Top Wealth-Holders in National Wealth, National Bureau of Economic Research. 1962; 1958, James D. Smith and Staunten K. Cafvert, "Estimating the Wealth of Top Wealth-Holders from Estate Tax Returns," Proceedings of the American Statistical Association, Philadelphia, PA., 1965 (copyright); 1962-1972, James D. Smith, unpublished estimates, The Urban Institute. Washington. DC. and The Pennsylvania State University (copyright). No. 775. Personal Wealth—Value Of Assets Held By All Persons, Top One-half Percent, And Top One Percent: 1962 To 1976 [In billions of dollars, except as indicated. Wealth of all persons derived from national balance sheets. Wealth of top one-half percent and one percent of all persons estimated by estate multiplier technique. Detailed descriptions of methodology and attendant problems can be found in sources cited for table 774] NA Not available X Not applicable. ■ Market value without deduction of mortgages, liens, or other incumbrances Includes foreign real estate. ■ Includes all common and preferred issues', shares in domestic or foreign firms, certificates and shares of building and loan and savings and loan associations, Federal land bank stock, accrued dividends, and other instruments representing equity interest in an enterprise. Stock held in trust is included, but value is understated. '■' Includes checking and savings balances, currency on hand or in safe deposit boxes, cash balances with stockbrokers, and postal savings accounts. Cash in trust is included, but understated. * Includes notes and mortgages, security credit, and similar assets. s Cash surrender value; i.e., the amount individuals could expect to receive were they to surrender their policies to the carriers. It takes account ol policy loans, accrued drvdends, and unearned premiums. a Includes all assets owned in trust except real estate. Trust classrficabon figures should not be used to arrive at total assets because these data are included in individual asset types. * Includes all legal obligations except loans on life insurance policies. Source James D. Smith and Stephen D. Franklin. "The Concentration of Personal Wealth. 1922-1969." The American Economic Review. Volume LXIV. Number 2, May 1974 (c«»yrtght). and U.S. Congress, House Committee on the Budget. Data on Distribution of Wealth in the United States, and unpublished data. 20 Figure 16.1 Annual percent change 450 Finished Goods 400 350 Crude materials 1 Annual rate for six months ending June 1984. 2Percent change, June 1983 - June 1984. Source: Chart prepared by U.S. Bureau of the Census. For data, see tables 777 and 781. Annual rate for six months ending June 1984. 2 Percent change, June 1983 - June 1984. This section presents indexes of producer and consumer prices, actual prices for selected commodities, energy prices, and consumer expenditures. The primary sources of these data are monthly publications of the Department of Labor, Bureau of Labor Statistics, which include: Monthly Labor Review; Consumer Price Index, Detailed Report; Consumer Prices: Energy and Food; and Producer Prices and Price Indexes. The Bureau of Economic Analysis of the Department of Commerce is the source for the gross national product (GNP) implicit price deflator figures; see table 779. The Department of Agriculture's Economic Research Service (ERS) produces indexes of prices received and prices paid by farmers; see Section 24. The single year 1967 has been the standard reference base period for most general-purpose index numbers prepared by Federal agencies. The Bureau of Labor Statistics (BLS) prepares monthly indexes of producer prices for a large selection of commodities, and monthly indexes of consumer prices for both commodities and services. Producer price Index.—Formerly known as the wholesale price index, this index, dating from 1890, is the oldest continuous statistical series published by BLS. It is designed to measure average changes in prices of all commodities, at all stages of processing, produced for sale in primary markets in the U.S. The index has undergone several revisions (see Monthly Labor Review, February 1962 and April 1978). It is now based on approximately 3,400 commodity price series instead of the approximately 1,900 included in the 1947-1960 period and the 900 included for the period prior to 1947. Prices used in constructing the index are collected from sellers, if possible, and generally apply to the first significant large-volume commercial transaction for each commodity—i.e., the manufacturer's or other producer's selling price or the selling price on an organized exchange or at a central market The weights used in the index represent the total net selling value of commodities produced or processed in this country. Values are f.o.b. production point and are exclusive of excise taxes, interplant transfers, military products, and goods sold directly at retail from producing establishments. Beginning in January 1976, the weights are values of net shipments of commodities as derived from the industrial censuses of 1972 and other data. For January 1967-December 1975, weights were based on 1963 shipment values. Implicit price deflators.—Several measures of the change in prices paid by U.S. consumers are available. Each of them is constructed differently and behaves differently. Three such measures are: the implicit price deflator for personal consumption expenditures (PCE) and the chain price index for PCE, prepared by Bureau of Economic Analysis (BEA) and the consumer price index; prepared by BLS. Many of the differences are traceable to the fact that the population groups covered by the BEA measures are "persons" as defined in the national income and product accounts, i.e., mainly individuals and nonprofit institutions and individuals serving them. The CPI covers all urban consumers. Weights also differ in each of the three measures. In terms of relative importance, approximately 70 percent of the expenditure components used in constructing the BEA and the CPI are comparable. CPI measures are also used in constructing most of the BEA measures for noncomparable PCE components. All together, almost 95 percent of the weight of the price indexes used in the construction of the BEA measures is taken from the CPI. See U.S. Bureau of Economic Analysis, Survey of Current Business, March 1978 for a detailed reconciliation. Consumer price indexes (CPI).—The CPI is a measure of the average change in prices over time in a fixed "market basket" of goods and services purchased either by urban wage earners and clerical workers or by all urban consumers. In 1919, BLS began to publish complete indexes at semiannual intervals, using a weighting structure based on data collected in the expenditure survey of wage-earner and clerical-worker families in 1917-19 (BLS Bulletin 357, 1924). The first major revision of the CPI occurred in 1940, with subsequent revisions in 1953, 1964, and 1978. The current revision, initially issued with release of the January 1978 data, is based on updated "market baskets" of goods and services and revised expenditure weights derived from a 19721973 Consumer Expenditure Survey. Effective with the January 1978 index, BLS began publishing CPI's for two population groups: (1) a new CPI for All Urban Consumers (CPI-U) which covers approximately 80 percent of the total noninstitutional civilian population; and (2) a revised CPI for Urban Wage Earners and Clerical Workers (CPI-W) which represents about half the population covered by CPI-U. The CPI-U includes in addition to wage earners and clerical workers, groups which historically have been excluded from CPI coverage, such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force. Separate, although overlapping, samples were used for the two indexes from January 1978 to January 1982. Thereafter, the same samples were used for both indexes. In January 1983, the method of measuring homeownership costs in the CPI-U was changed to a rental equivalence approach. This treatment calculates homeowner costs of the shelter based on the implicit rent owners would pay to rent the homes they own. The former asset approach incorporated both investment as well as consumption costs in its measure. The rental equivalence approach will be introduced into the CPI-W in January 1985. The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors' and dentists' services, drugs, and other goods and services purchased for day-to-day living. Prices are collected in 85 areas across the country from over 24,000 tenants, 18,000 housing units for property taxes, and about 32,400 establishments. Area selection was based on the 1970 census. All taxes directly associated with the purchase and use of items are included in the index. Prices of food, fuels, and a few other items are obtained every month in all 85 locations. Prices of most other commodities and services are collected monthly in the five largest geographic areas and every other month in other areas. In calculating the index, each item is assigned a weight to account for its relative importance in consumers' budgets. Price changes for the various items in each location are then averaged. Local data are then combined to obtain a U.S. city average. Separate indexes are also published for regions, area size-classes, cross-classification of region and size-classes, and for 28 local areas, usually consisting of the Standard Metropolitan Statistical Area (SMSA); see Appendix II. Area definitions are those established by the Office of Management and Budget in 1973. Definitions do not include revisions made since 1973. Area indexes do not measure differences in the level of prices among cities, they only measure the average change in prices for each area since the base period. For further detail regarding the CPI, see Consumer Price Index; Concepts and Content Over the Years, BLS report number 517. Statistical reliability.—For a discussion of statistical collection and estimation, sampling procedures, and measures of statistical reliability pertaining to the producer price index and the CPI, see Appendix III. Historical statistics.—Tabular headnotes provide cross-references, where applicable, to Historical Statistics of the United States, Colonial Times to 1970. See Appendix I. No. 776. Purchasing Power Of The Dollar: 1940 To 1984 [ 1967 $1.00. Producer prices prior to 1961, and consumer prices prior to 1964, exclude Alaska and Hawaii. For 1940 and 1945. producer prices based on all commodities index; subsequent years based on finished goods index. Obtained by dividing tne average price index tor the 1967 base period (100.0) by the price index tor a given period and expressing the result in doflars and cents. Annual figures are based on average of monthly data] No. 777. Annual Percent Change In Selected Price Indexes: 1960 To 1984 [Yearly averages. Minus sign (-) indicates decrease. GNP- Gross national product; see text, p. 427] - Represents zero. l Includes bottled gas. * Source: U.S. Bureau of Economic Analysis, The National Income and Product Accounts of the United States, 1929-76, Survey of Current Business, July issues. Index 1972 = 100. ■ PCE = Personal consumption expenditures. See table 779. * Base year for percent change is 1959. ■ Change from June 1983-June 1984, except GNP deflator, 2d qtr. 1983 to 2d qtr. 1984. "Average annual percent change. For explanation of average annual percent change, see Guide to Tabular Presentation. Source: Except as noted, U.S. Bureau of Labor Statistics, Monthly Labor Review. No. 778. Annual Percent Change In Wage Rates, Costs, Productivity, And Federal Budget: 1971 To 1983 NA Not available. 'Fiscal year data: see table 483. Source: U.S. Office of Management and Budget, Special Analyses, Budget of the United States Government annual and unpublished document, "Federal Government Finances." February 1964 edition. Source: Except as noted, U.S. Bureau of Labor Statistics. Monthly Labor Review and Employment and Earnings, monthly, and Current Wage Developments, May 1984. |