BLS SURVEY OF CONSUMERS EXPENDITURES IN 1960-61

This study when completed will provide information on the average annual expenditures, incomes, and changes in assets and liabilities of approximately 13,800 families and single consumers, classified by the age of the family head. Preliminary information available at this time for 4,463 urban families (including 1-person families) for 1960, compared with similar information for 1950, is shown in the following tables:

TABLE 1.-Summary of family expenditures, income, and savings, by age of head; all U.S. urban families and single consumers, 1950 and 1960

TABLE 1.-Summary of family expenditures, income, and savings, by age of head; all U.S. urban families and single consumers, 1950 and 1960-Continued

1 The 1960 data for individual cities used in this tabulation are final, but the weighting factors for combining the city data to obtain averages for regions and all U.S. urban are preliminary and subject to minor revisions.

The algebraic sum of reported increases and decreases in assets and liabilities. Net increases in assets or decreases in liabilities represent a net saving during the year. Net decreases in assets or increases in liabilities represent a deficit (-) or net dissavings.

Percent homeowners in 1950 is as of the end of year.

Money income after deduction of personal taxes (Federal, State, and local income taxes, poll taxes, and personal property taxes).

Net reporting discrepancy between the receipts and disbursements accounts, obtained by subtracting personal consumption expenditures, gifts and contributions, personal insurance, and the net change in assets and liabilities from the sum of money income after taxes and other money receipts. Negative (-) difference, indicates reported receipts are less than disbursements (including savings or dissavings).

Includes items not listed separately.

* Includes rent and taxes, insurance, interest, repairs, and other current operation expenditures of homeowners for principal residence and vacation home. Excludes payments on mortgage principal and for home improvements, which are counted as changes in assets and liabilities.

Source: Division of Living Conditinos Studies, Bureau of Labor Statistics, U.S. Departmnet of Labor, Washington, D.C., June 1963.

TABLE 2.-Percent distribution of current consumption expenditures-all U.S. urban families and single consumers, by age group, 1950 and 1960

1 The 1960 data for individual cities used in this tabulation are final, but the weighting factors for combining the city data to obtain averages for regions and all U.S. urban are preliminary and subject to minor revisions.

Source: Division of Living Conditions Studies, Bureau of Labor Statistics, U.S. Depart ment of Labor Washington, D.C., June 1963.

Mr. CURTIS. Let me say that, of course, averages can do that if people misinterpret them.

Secretary WIRTZ. Averages are human statistics.

Mr. CURTIS. But only because people misinterpret them. We still gain an advantage from knowing them, and if that is so then indeed the administration should lay off of this business of presenting just two figures, the one fact that medical costs for older people are greater than any other age group, if they are not going to give it in context. Secretary WIRTZ. It should be in context and I think it is here. in context.

Mr. CURTIS. It has not been in the publicity of the administration and it certainly isn't in this little pamphlet that has been distributed, as I pointed out, against the law by the Secretary of Health, Education, and Welfare. It is against the law to promote this legislation with tax money, but I am anxious to get the figures. I recognize, just as you point out, that we have to be careful when we are using averages when we are dealing with people. Likewise we should know these facts as best we can, and averages and means and medians help us in this understanding. Take your averages, say, $2,500. That means that 50 percent are below that perhaps, but it also means that 50 percent are above it.

Secretary WIRTZ. It could mean that 90 percent are below and 10 percent are above.

Mr. CURTIS. It could, but if you do the right thing in statistics you can determine what it is.

Secretary WIRTZ. I will be glad to give the figure. We agree on the danger. You get about as much information from averages in this field as you do from sticking a thermometer in somebody's mouth. You can find out whether there is some kind of illness, but it does not tell you a thing about how serious the trouble is.

(The following material was supplied for the record :)

According to the Census Bureau's Current Population Report, series P-60, No. 37, table 4, in 1960, there were 6.2 million families with heads aged 65 or older. Of these, 2.7 million, or 43 percent, had incomes under $2,500, the cost of the BLS Budget for a Retired Couple, adjusted downward to allow for lower costs in small cities and among homeowners.

In addition to the elderly families, there were 3.65 million individuals living alone aged 65 or older, 2.75 million, or 75 percent of whom had incomes less than $1,800, the estimated cost of the modest budget standard for an elderly retired person.

This is the basis for the estimate that five and a half million elderly families had incomes in 1960 less than needed for a modest standard of living.

Mr. CURTIS. We need to know not only how serious the trouble is, but how good the other part is. In fact, this, to me, is the issue here. I think we have a problem probably with maybe 15 percent of our older people, and I suspect that around 85 percent are doing all right. What we are doing with this proposal is radically changing our system which is working all right for 85 percent in order to meet the problems