i/m.// 4i«J l|(Hr.V t ■ — gl ■«fea«to*afea«B^«*; Cornell University Library HD 6983.B85 Standards of Irving; a complication of bu ECOMOMICS, Inc. «, D. C. "3""l924 002 664 716 ., fe Standards of Living A Complication of Budgetary Studies WASHINGTON 19 19. THE LIBRARY OF THE NEW YORK STATE SCHOOL OF INDUSTRIAL AND LABOR RELATIONS AT CORNELL UNIVERSITY BUREAU OF APPLIED ECONOMICS, Inc. WASHINGTON, D. C. Standards of Living A Compilation of Budgetary Studies eeHNIILL UNIVERSITY WASHINGTON . 1919 • Copyright. 1919 by BUREAU OF APPLIED ECONOMICS, Inc. Washington, D. C. TABLE or CONTENTS Page Preface 5 I. Minimum Subsistence and IWinimum Comfort Budgets (Prof. W. F. Ogburn) . . 7 II. Higher Food Prices and the Proper Nutrition of Workingmen's Families (Prof. M. E. Jaffa) _. 16 III. A Minimum Budgetary Estimate for Pacific Coast Workers (Dr. Jessica B. Peixotto) 22 IV. Budget Proposed by Seattle and Tacoma (Wash.) Street Railway Employes. 29 V. Budget Awarded to Seattle and Tacoma (Wash.) Street Railway Employes. . 30 VI. A Minimum Monthly Diet and Its Cost (Prof. M. E. Jaffa) 31 VII. Tentative Budget of Philadelphia Bureau of Municipal Research 31 VIII. Budgetary Study of the Department of Health, New York City (Inspector Graef ) 33 IX. Budget of the Annual Cost of Living, 1914-1919 (State Bureau of Labor, Olympia, Wash.) 34 X. The Cost of the Navy Ration for Enlisted Men 39 XI. Canadian Budget 39 XII. Cost of a Minunum Food Supply for a Representative City Family (Inspec- tor Graef) 40 XIII. Report on the Increased Cost of Living for an Unskilled Laborer's Family in New York City 44 PROPERTY OF LIBRARY NEW YOOX ST4TE SCHOOL INDUSTCIAL A^O LAiOR RELATIONS CORNELL UNIVERSITY Jilt Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924002664716 PREFACE The great present interest in the subject of a " living wage " makes it seem pertinent at this time to bring together the results of the various studies of standards of living in this country. The present volume seeks to present, either in full or in summary form, such of these studies as seem of particular value. I— MINIMUM SUBSISTENCE AND MINIMUM COMFORT BUDGETS. Prepared by PKOF. W. F. OGBURN. The Principles of the National War Labor Board provided that every workman should have wages which would insure a reasonable standard of comfort. In the course of the decision of this standard, Professor W. F. Ogburn, who was in chatge of the Cost of Living Section of the Board, submitted the results of several independent investigations made by his staff. Practically the same data were sub- mitted by him as an expert witness in the arbitration proceedings of Decembep, 1918, before Judge Samuel Alschuler, Administrator of Industrial Relations in the Chicago Slaughtering and Meat Packing establishments, and also in the proceedings before a section of the National War Labor Board which in January, 1919, had under con- sideration wages and working conditions among the boatmen in New York Harbor. Prof. Ogbum's budgets with accompanying comments were as follows: 1. There are various budget levels. Three budget levels have been distinguished : (a) The pauper or poverty level. — A good many budgets written in books have been worked by charity organization society workers, and their estimates are sometimes at a pauper level somewhat below the subsistence level. The test is usually at a point where the families receive aid from some charity organization or other source, or perhaps where they run into a deficit. It is, of course, a fact that a good many American families have been living at this level below that of subsistence. (6) The minimum of subsistence level — This level is based essen-|' tially on physical well-being with little attention paid to the social scale. It may vary from time to time, and certainly does from country to country, and possibly from immigrant group to immigrant group. (c) Tlie minimum comfort level. — Very little attention has been paid to this level in budget literature, but the standard is as much a reality as is that of any other budget. It is one level above that of 1 the subsistence level, and provides slightly more for comforts, insur- ance, clothing, and sundries, and is supposed to furnish a certain well-being above that of the physical level. 2. Budget items must be an average. For instance, 52 monthly car rides may be a minimum for a man who lives far away from work. No car rides may be a minimum for a man living near work and near 8 STANDARDS OF LIVING. town. Forty car rides may never be the actual number taken by any men, but wiU be an average for a distribution of men, some of whom live near work and some far away. 3. Budget estimates can not be set at the lowest individual con- sumption estimate in a distribution. The calory requirement per man per day can not be set at 2,500, because one man happens to require that many, when the average man requires approximately 3,500. 4. Budget estimates are not an ideal budget. We can not go on the assumption that the housewife can purchase food values with the skill of a domestic-science expert, or that she has the will power of a Puritan, or that no allowance would be made to the man for drinks and tobacco. 5. Budget standards may not necessarily be actual budgets. For instance, the actual budget may show an actual expenditure of $18 a year for health, yet we may have evidence to know from the number of days' sickness of the American workman that $18 is not enough. The items should be placed, at a higher figure than is actually found. However, budget estimates should bear a very close relationship to actual budgets. MINIMUM BUDGET PROPOSED. The following minimum' budget of $1,386 is suggested for consider- ation : Xentatire Budget American Subsistence Level, 191S. Food $615 Clothing: Man 76 Woman 55 11 to 14 years 40 7 to 10 years 33 4 to 6 years 30 Rent 180 Fuel and light g2 Insurance 40 Organizations 12 Religion Y Street-car fare 40 Paper, books, etc 9 Amusements, drinks, and tobacco 50 Sickness gn Dentist, oculist, glasses, etc 3 Furnishings ,5 Laundry ' . Cleaning supplies " " ' ..^ Miscellaneous 2n T-'tal -^Q STANDARDS OF LIVING. 9 This budget is for a large eastern city and is the result of studies of 600 actual budgets of shipyard workers in the New York shipbuilding district. PROF. CHAPIN'S BUDGET BEOUGHT UP TO DATE. Another way of estimating a minimum budget for tbe American subsistence level in 1918 is to take minimum budgets of past years that have been accepted as standard and apply the increases from the date of the budget to the present time in the prices of the various items of the budget, thus bringing them up to date. This method assumes no chsinge in minimum standards. It is of course subject to possible inaccuracies in measuring the rising cost of living between specific dates for specific places. This inaccuracy is thought to be slight however. For instance, one of the most famous and perhaps most generally accepted budget estimates is that of Prof. Chapin, who made a study lasting several years of New York families, publishing his result in 1907. He said, "An income under |800 is not enough to permit the maintenance of a normal standard. An income of $900 or over probably permits the maintenance of a normal standard at least as far as the physical man is concerned." If we take the increase in the cost of living from 1907 to June, 1918, to be 55 per cent, then Chapin's $900 becomes $1,395. If we take the increase to be 60 per cent then Chapin's $900 becomes $1,440. Probably the best estimates of increasing cost of living place the increase from January 1, 1915, to June 1, 1918, as 55 per cent. MINIMUM BUDGET OF NEW TORE FACTORY COMMISSION BROUGHT UP TO DATE. In 1915 the New York State Factory Investigation Commission set a minimum budget for 1914 in New York City at the figure $876. Applying increases in items of the budget by classes from January 1, 1915, to June 1, 1918, we get, as seen from the following table, a budget of $1,356. Budget New York Factory Commis- sion 1914. Increases in cost of living to June 1, 1918. New York Factory Budget brought up tod^te. Food 1325 200 20 140 191 Per cent. 65 29 44 76- 51 Rent . - 2'i8 Fuel and light 2R Sundries 288 876 1,356 It is possible to criticize this budget in the first instance as being: low in food and certain sundries for an average of a group of families. 10 STANDARDS OF LIVING. MINIMUM BUDGET OF THE NEW ¥ORK FACTOKT INVESTIGATING COMMISSION, 1915. Estimate of Cost of Liftog of normal Famay of Five in New York City. Pood *325.00 Rent 200.00 Fuel and light ^"•"" Clothing "«-00 Car fare ^^-^^ Insurance : Man 20.00 Family 1^.60 Health 22.00 Furnishings ''■*"' Education, newspaper 5.63 Recreation and amusement 50.00 Miscellaneous ; 40.00 Total $876.43 MINIMUM BUDGET OF NEW YORK BOARD OF ESTIMATE BROUGHT UP TO DATE. In February, 1915, the Bureau of Personal Service of the Board of Estimate and Apportionment of New York City made a minimum budget estimate for an unskilled laborer's family in New York City of |845. Applying increases in items of the budget by classes from January 1, 1915, to June 1, 1918, we get, as seen from the following table, a budget of |1,317. New York Budget ■Jncreases board of New, York In cost of estimate board of living to budget estimate. June 1, brought 1915. 1918. up to date. Per cent. Food $384 65 S634 168 4a 29 44 Fuel and light 62 Clothing , 1(M 76 183 Sundries 146 51 221 Total 843 1 317 It is possible to criticize this budget as being too low in allowances for health, furniture, and education, and very low indeed in other sundries. STANDARDS OF LIVING. H Budget of New Tork Board of Estimate for 1915. Housing $168.00 Car fare 3"-^*' Food 383.81 Clothing 104.20 Fuel and light 42.75 Health ■ 20.00 Insurance ■• 22.88 Papers and other reading matter 5.00 Recreation '. 40-00 Furniture, utensils, fixtures, moving expenses, etc 18.00 Church dues 5-00 Incidentals — soap, washing material, stamps, etc 5.00 Total $844.94 ESTIMATING THE BUDGET FROM FOOD EXPENDITUEE. Another method of estimating a budget is by taking the food item at a certain figure, and as we know a good deal about the percentage which food is of the total budget, we cati estimate the total budget. The reason for taking food is that food does not vary greatly, and then we can measure with greater accuracy the necessary food for a family than most of the other general items, such as rent, clothing, sundries, etc. It is generally accepted that a man at moderate physical labor needs 3,500 calories a day and Atwater has estimated the needs of the individual members of his family in per cents of his needs. Thus his wife consumes 0.8 as much ; a boy of 16 years of age, 0.9 as much ; a girl 15 to 16„ 0.8, a child from 6 to 9 years, 0.5 ; and so on. We thus express a family in terms of adult males. We say that a family of five — man, wife, and three children — will equal 3.3 adult males when the children are of a certain age. The average food budget of 600 families of shipyard workers in the New York district collected by the Bureau of Laibor Statistics was found to cost |607 for 3.6 equivalent adult males. This was sub- mitted to calory analysis and yielded 3,155 calories of energy for man per day, not including any waste. This means that $607 did not furnish enough food for the New York families. A food expert might have bought the necessary amount, but the families in actual practice did not. Dietaries should be well balanced also, but this analysis was not undertaken. So the important conclusion results that in the New York shipbuilding area $607 is not enough of an allowance for food. / 12 STANDARDS OF LIVING. Now, from Prof. Chapin's excellent study we have seen that at the point where the families cease to be undernourished, food is U per cent of the total bugdet. Now, if we take a low figure of $615 as the food allowance for family of 3.3 or 3.4 equivalent adult males and place it at 44 per cent of the budget, we get a minimum budget of $1,396. SUMMARY OF ESTIMATES ON MINIMUM BUDGETS FOE AMERICAN SUBSISTENCE lETEL. From three angles we have formed an estimate of a minimum budget: (1) From study of actual budgets, (2) from applying increased costs of living to recognized standard budgets, (3) from estimates of adequate food allowance and its percentage of expen- ditures. ^ These estimates for New York district in 1918 are as follows: 1. Detailed budget from family studies .- $1,386 2. Chapin's budget brought to date 1,395 New York factory budget brought to date 1,356 Board of Estimate budget brought to date 1,317 3. From food allowance 1,396 MINIMUM COMFORT BUDGETS, LETEL ABOVE SUBSISTENCE. Many American industrial workers fortunately do not live on the minimum of subsistence level; they, live above the minimum level. This second level is, of course, a reality. An estimate approxima- ting this level was made by the Faculty of Economics and Sociology of the University of Washington in the fall of 1917 for street-car men, which was used as the basis of settling the wage controversy at that time. The figure was set at §1,500 a year for a family of five, as a result of some four weeks' study of actual budgets of skilled workers. This complete budget is cited in full in this report. The* cost of living has risen in Seattle since that time about 15 per cent as judged by the studies of the University of Washington and the Board of Labor Statistics. This would bring the budget of $1,500 up to $1,725, if we take 15 per cent as the increased cost of living. Dr. Jessica Piexotto, of the University of California, set a budget of $1,476 for Pacific coast workers, which she called a minimum standard of whole- some living, and not mere subsistence. This budget was for October, 1917, and would probably amount to over $1,700 at the present time. As further evidence bearing on the budgets for a level above that of minimum subsistence a budget is submitted in detail and follows these paragraphs. This budget is based largely upon a study of the workers in the shipyards in the New York district, who receive the higher incomes. STANDARDS OF LIVING. 13 PROPOSED BUDGET OF lETEL ABOVE MINIMUM SUBSISTENCE. ATerage for the United States. Pood $625.00 Clothing 313.50 Rent, fuel and light 295.00 Sundries 527.00 Total $1,760.50 General Summary. Food $625.00 Clothing: Man 92.50 Woman 87.00 Boy, 13 years 57.00 Girl, 8 to 10 years 37.50 Boy, 4 to 7 years 39.50 Rent 220.00 Fuel and light 75.00 Insurance and savings 150.00 Health 60.00 Furnishings 50.00 Education 20.00 Car fare 55.00 Organizations (church, labor, and others) 24.00 Comforts (tobacco, candy, gifts, etc.) 43.00 Recreation 50.00 Miscellaneous (cleaning, stamps, barber, etc.) 75.00 Total $1,760.50 Food. 600 pounds meat, llsh and cheese $175.00 730 quarts of milk 96.00 80 dozen eggs , 34.00 8 pounds beans 14.00 360 pounds flour 24.00 360 pounds commeal 26.00 200 pounds cereals 20.00 48 pounds macaroni 5.00 50 pounds rice 6.00 600 pounds potatoes 13.00 600 pounds vegetables 36.00 600 pounds fruits 30.00 120 pounds butter 60.00 75 pounds lard, oils, and fats 25.00 250 pounds sugar 23.00 40 pounds coSee 12.00 12 pounds tea : 6.00 Sundries 20.00 Total $625.00 14 STANDARDS OF LIVING. Man. $6.50 Overcoat 2 50 Sweater 25 oo Suit or uniform ^'^^ Trousers • ^5 00 Shoes and repair Overshoes „' ^ Underwear ' Night garments ' H^ts 6:50 f";*^ :::.... 4.50 f:^''^--- 6.00 Gloves Ties, collars, and handkerchiefs ^•"" Suspenders and garters •' . Incidentals •. ; Total • $92.50 \yoman. „ . $8.00 n"° 12.50 Suits Shoes and repair 1^.00 ' 75 Overshoes Underwear ^■'^^ Nightgowns ^-^"^ underskirt 2.50 Corsets • • • • • ^-^^ Kimona -^^ Waists 5.00 House dresses 5.00 Street dress 7.50 Hats 9-00 Gloves 2.50 Stockings 2.00 ^ Aprons 2.25 Umbrella 1-00 ; Incidentals (veils, pins, brushes, handkerchiefs, furs, slippers, etc.) 4.50 Total $87.00 Boy 13 and Over. Top coat and sweater $7.50 Suit and trousers 17.00 , Shoes and repair 16.00 Underwear .- 4.00 Night garments 1.50 Hats 3.50 Shirts 3.50 Stockings and socks 2.50 Ties, handkerchiefs, etc 1.50 Total $57.00 STANDARDS OF LIVING. 15 Girl 8 to 10. Top coat and sweater 16.00 Rubbers 1.50 Shoes and repair 15.00 Underwaists and garters 1.50 Dresses (school and best) 6.00 Petticoat (or bloomers) 1.50 Underclothes Night garments Hats 2.(30 Stockings 2.00 Ribbons and handkerchiefs 1.00 Umbrella 1.00 Total $37.50 Boy 4 to 7. Top coat and sweater $4.50 Shoes and repair 15.00 Rubbers 1.50 Suits (work, best, overalls) 9.00 Underwear Underwaists and garters 1.50 Night garments Hats and caps 1.00 Waists and blouses 2.50 Mittens, ties, handkerchiefs 1.00 Stockings 3.00 Total $39.50 Bent, Water, Fuel, and Light. ; House, 5 or 6 rooms, with water $220.00 Coal, wood, gas, and light 75.00 > Total $295.00 Sundries. Insurance and savings $150.00 Organizations (labor and other) 15.00 Education (newspaper, magazines, and books) 20.00 Church 9.00 Health (physicians, drugs, dentist) 60.00 Furnishings 50.00 Car fare 55.00 Cleaning and laundry 25.00 Tobacco 15.00 Gifts (Christmas, etc.) 8.00 Candy 5.00 Drinks 15.00 Amusements and vacations, etc 50.00 Stamps, barber, stationery, etc 15.00 Exigencies and waste 35.00 Total $527.00 16 STANDARDS OF LIVING. II— HIGHER FOOD PRICES AND THE PROPER NUTRITION OF WORKINGMEN'S FAMILIES. (Report of Professor Jaffa, of the University of Califomia.) During September, 1917, an Arbitration Board which had been ap- pointed to adjust the wages of employes of the street railways of Oak- land, California, requested Professor M. E. Jaffa, of the College of Agriculture, University of California, to submit for their information a report regarding the increase in cost of food during the preceding ten years. As several other members of the faculty of the University had been asked for similar reports. Professor Jaffa decided to leave the Inat- ter of the total family income to be discussed by the economists and to emphasize in his report the purely nutritional side of the problem. He arranged a table showing the approximate amounts of the different staple foods which form the diet of the average family. He then cal- culated the cost of this diet for the preceding ten years^ and made his results the basis of an analysis of the increased cost of living and of the effect of rising prices upon the physical well-being of the worker and his family. "Food is no longer," he states, ""considered as a mere appeaser of the appetite. It is now recognized, in the serious aspect, as a satisfler of the physiological needs of the body. These fundamental food needs do not vary with the income, but depend upon such things as growth, weight, and amount of work performed. It takes just as much milk to nourish the body of one baby as it does another, regardless of the father's earning capacity. A man engaged in heavy labor requires more food than does an offlce man, regardless of the difference in in- come. But the (Met is a different matter. One man may eat rib roast, while another eats stew — ^but meat they both require. One may eat hot- house berries while the other eats dried apples— ;but fruit they both should have. In other words, a proper diet for any family should be drawn in right proportion and in adequate amounts from all five food classes, but for the family of small income the selection must be made, in large part, from the cheaper foods or grades of food in each class, and the quantity is usually found to be nearer to a minimum than can be considered desirable. "The foUowing table shows the effect of increased prices on the total food cost for a family of small income. It expresses the average of many dietary studies of such families and has been modified just enough to overcome undesirable deficiencies due to enforced privations, and to meet the minimum demands for health and eflSciency. STANDARDS OF LIVING. 17 "It can not be sufQciently emphasized that while this type of diet has been selected as a working basis, it is not therefore to be considered a suflScient or an approved diet. Only a certain proportion of people can maintain health on a minimum — which provides only that amount of energy which the body actually puts forth in the processes of living and working. It provides no safety factor, and allows for no individual differences. No person should be held down to a minimum when the appetite and apparent bodily needs seem to call for more. A minimum expresses the line below which it is dangerous to go. All the food which this diet calls for is necessary, but not necessarily' all that is required. TABLE SHOWING INCREASE IN COST OF FOOD FROM MAY, 1907, TO MAT, 1917. Minimum Diet on WWcli Healtli Can Be Maintained foir a Worlungman, His Wife and Tliree CltiMren Between 4 and 14 Tears of Age. Food materials. Food and cost for one month. Pounds. 1907. 1912. 1916. 1917. Class I— 50 120 6 8 60 17 4 10 35 55 50 8 10 25 2 $5.75 4.80 .81 .40 1.88 .49 .28 .60 .70 1.38 2.25 2.29 1.35 1.38 .73 2.00 i7.25 4.80 1.12 .40 1.92 .77 .32 .60 1.05 1 1.65 2.50 2.55 1.90 1.53 1.00 2.30 $8.00 4.80 1.08 .40 1.92 1.02 .32 .60 1.05 1.65 2.50 2.40 2.00 1.75 1. 00 2.50 $10 00 6 00 1.56 1.60 4,80 1.36 ..50 .83 2.17 1.65 2.50 3.60 2.50 2.25 1.00 3.00 Milk Class II— Flour Class in— Class IV— Class V— Extras— $27.09 $29.66 $32.99 $45.32 Sundries include yeast, corn starch, cocoa, cheese, syrup, salt, etc. "A study of this table shows that the cost of food for the family diet here presented has gone up, in ten years, from |27.00 to |45.00 — an increase of upwards of 67 per cent. Staggering as these figures are when considered in connection with a stationary income, the increase shown in the last year is by far most serious. It is quite evident that the increased cost of nearly ?18.23 shown in the table could not have been met by many families under discussion. It will be necessary, then. 18 STANDARDS OP LIVING. to consider what adjustments have been made, and the effect of these adjustments upon the health of the family. "Much has been accomplished by many people by substituting one food for another as prices have changed. Some of this has been legiti- mate and helpful — some has been unwise and detrimental. "The extent to which substitution can be practiced depends almost entirely upon the type of the original diet, and this, in turn, depends upon the income. Not only is the total supply of food more generous on the large income, representing the maximum for health rather than the minimum, but the distribution of foods in the various classes is different. On a low income, people can afford only a small quantity of the concentrated foods, meat, eggs, butter, and sugar, the largest pro- portion of their diet coming from the starchy foods which are "bulky," and furnish the cheapest form of nourishment for the money expended. As the income goes up and people are free to exercise their instinctive choice, the use of meat, eggs, butter, sugar, etc., increases, and the starchy foods are decreased and replaced in part by the other class of bulky foods — fruits and vegetables, which are more expensive for the nourishment they contain, and are, therefore, not used freely by poorer people. We have, then, two very different types of diet to consider. Let us see what happens to each when prices rise. MEAT. "When meat increases in price, the well-to-do, who have usually bought a large proportion of choice cuts, can substitute inferior ones on some days, use beans occasionally, or reduce their meat quantity somewhat. Where cheap meats, however, have been the rule, and where beans have always been used for economy, there is no recourse but to pay the price or go without. And when, at the same time, beans jump nearly three- hundred per cent, the detrimental form of substitution begins, and starchy foods and inadequate amounts of milk or cheese are substituted for protein. One food can not be used with safety to replace another unless it is in the same class, as each of the five classes have important and different uses in the body. POTATOES, "Again, when potatoes increase in price, most people used rice or macaroni as a substitute, although potato is a vegetalle and not a cereal food. Here again the well-to-do suffered no harm. Their supply of other vegetables, as well as fruit, was enough for their physiological needs. But the people on a minimum diet have always depended upon potatoes very largely to furnish that fresh quality, and those special STANDARDS OF LIVING. 19 minerals, so important to health. They have never aflPorded much other vegetable, nor do these others^fumish the amount of, nourishment in addition to the hygienic values, that potatoes do. Therefore, people of small income suffered in health. That this form of substitution was detrimental was shown in several institutions where this form of econo- my caused a decided increase in the drug bills. SUGAR. "There is no cheap substitute for sugar, and when this food became expensive, the quantity was reduced and nothing was substituted. As the maximum and" medium diets provide good amounts of all forms of concentrated foods, a moderate reduction in quantity of one kind, or several, can be made without injury to health. But where the diet is already low, the loss of nourishment is keenly felt, and when all other forms of concentrated foods are also expensive, no adequate sub- stitution can 6e made. 'T^he scheme works like this : Cereal food forms the cheapest and largest part of the diet. The price rises, and the pocket book is strained. Meat and 'beans increase in price, and people are told to eat more cereals. Result: more bulky food, unbalanced diet, less nour- ishment, but more expense. Butter increases in price. The supply is cut down. People are told that other foods can provide the nourishment. Result : more bulk, less balance, and less nourishment. Sugar increases in price. Amount is cut dpwn and nothing is substituted. Milk increases in price. Amount is cut down and nothing is substituted. Result : more loss of protein and of fat. Cereals rise again. There is no cheaper food, and nothing can te stibstituted. ''Where the income is small this process soon drains the diet of those foods which are most essential to health, and forces it down below the danger line." After pointing out many popular misconceptions as to the increased cost of living. Professor Jaffa concludes with an unusually strong point : •'A great many persons," he states, "tend to ignore a small percentage of advance in price of a particular foodstuff which as a matter of fact may be very serious because of the importance of the food or the fre- 20 STANDARDS OF LIVING. quent use of it, while, on the other hand, great stress is often laid on a spectacular, rise in price of a food which may be used only occasionally and, as a consequence, adds little to the total food cost of a family." INCREASED LIVING COSTS, 1916-1917. An employer of labor requested the University of California Agri- cultural Experiment Station for an estimate of the increased cost of living which he might use as a basis for adjustment of wages with his employes. Accordingly, Professor M. E. Jaffa, to another branch of whose work reference has just been made, prepared a statement (which has been printed as a bulletin of the .Agricultural Experiment Station) showing for an average family the increase in the cost of living from May, 1916, to May, 1917. "It is impossible," Professor Jaffa states, "to estimate the expenses of any family without knowing all the conditions, but there are certain fixed items of expense, and the percentage of increase in cost is known for others. These form a good basis for calculation in regard to the effect of high prices on the mode of living of a family of small income and will be discussed in turn. The accompanying table shows how the varying prices of foodstuffs affect the total food cost." TABLE SHOWING INCBEASE IN COST OF FOOD FROM MAT, 1916, TO MAY, 1917. Minimum Diet on Whicli Health Can Be Maintained tor a Worldngman, His Wife and Tliree Cliildren Between 4 and 11 Tears of Age. Food and Cost for 1 Month Pounds. 1916 1917 Market Price per Pound. May 1916 May 1917 Meat and fish . . Millt Eggs Beans Flour Cereals Macaroni Rice Potatoes Vegetables. . . . Fruits Butter Oil and fats. . . Sugar : . . Coffee and tea . Sundries First total Extra for man. Second total Per person per day . 50 120 6 8 60 17 4 10 35 55 50 8 10 25 $8.00 4.80 1.08 .40 1.92 1.02 .32 .60 1.05 1.65 ,50 .40 ,00 ,75 .00 ,50 $10.00 6.00 1.56 1.60 4.80 1.36 .50 .83 2.17 1.65 2.50 3.60 2.50 2. 25 1.00 3.00 $0.16 .04 .18 .05 .032 .06 .08 .06 .03 .03 .05 ..30 .20 .07 .30 $0.20 .05 .26 .20 .Q8 .OS .125 .083 .062 .03 .05 .45 .25 .09 .30 $32.99 2,55 $45.32 per 3.25 $.35.54 .237 $48.57 per .324 month, month. "The first total is adequate if the man of the family is engaged in ordinary labor. The second total allows for 1,000 calories extra food STANDARDS OF LIVING. 21 for heavy work. If the labor performed is that of a lumberman or har- vest hand, a further increase of three and a quarter dollars is necessary. "Additional children will add the following amounts to the food bud- get: Between 3 and 6 years Between 6 and 9 years Between 9 and 13 years A girl over 13 years . . . A boy over 13 years. . . . $ 5.70 per month 6.75 per month 7.90 per month 9.00 per month 10.50 to $11.00 per month "The item of 'Sundries' includes such articles as corn starch, syrup, cheese, salt, pepper, mustard, yeast, etc. "The diet here presented expresses the minimum on which health and efficiency can be maintained. It admits of many rearrangements be- tween the staples of the same class, according to the preferences of peo- ple of^ different nationalities ; more macaroni, less rice ; more vegetables, less fruit; more meat and less milk; but no appreciable variations could be made in. the cost without a corresponding decrease in the nour- ishment. In view of this fa^t the increase in cost of 33% per cent is serious. "It is unnecessary to say that many families live on much less than the diet given, which may account for a large proportion of stunted children, many diseases, early death, or inefficiency. "Clothing. — This item of expense varies greatly according to the ages of the children and the ability of the family to live up to any kind of standard. But the increase averages 33% per cent. The most important item under this heading is shoes, the price of which has in- creased in greater proportion than that of other articles of clothing. It is impossible to reduce the cost of shoes, as can be done with other kinds of wearing apparel, by making up cheap material at home. "Shoes show an increase in price of 50 per cent at present, but this will undoubtedly be changed to 100 per cent in the near future when the retailers are obliged to replace their stock at the ruling wholesale prices. The following estimate of the shoe cost for the family considered is con- servative and shows an increase of 50 per cent for the past year. COST OF SHOES PEE MONTH FOK FAMILY OF FIVE. Shoes ... Repairs . 1916 1917 $3.25 2.00 $5.00 3.00 $5.25 $8.00 22 STANDARDS OF LIVING. "Rent. — The prices paid for rent in cities by families of small income range from |12 to $17, so that -f 15 seems a fair average for the budget of the family. "Since the food cost is often 40 or 50 per cent, and the rent 20 per cent of small incomes, and since clothing, which often takes the lion's share of the balance, has increased 33% per cent, it would seem that enough data are at hand to warrant a preliminary budgeting lor a family with an assumed income of |75 a month. Rent Light 1916 1917 $15.00 1.50 3.00 33.00 5.25 $15.00 1.60 3.00 45.00 8.0U tuel Food Shoes balance $■■■7.75 17.25 $72.50 2 5U $75.00 ' $75.00 "In 1916 there was a balance of $17.25 a month to cover such other expenses as Insurance Clothing (except shoes) Vacation Organization dues School incidentals Recreation Drugs Household upkeep Amusements Doctor bills Church support Incidentals Dentist bills Car fares Emergencies "In 1917 there is |2.50 a month left to cover this long list of items, many of which are unavoidable, others urgent, and few of which can be omitted. "The higher prices have in all probability been met by a reduction in the food supply of the family. Rent must be paid, shoes and some little clothing must be bought, other incidentals must be met, but food, which is the largest item of expense and is susceptible of manipulation' can generally be reduced. This should not be done at the expense of the growth and development of the children and the eflSciency and en- durance of the adults." Ill— A MINIMUM BUDGETARY ESTIMATE FOR PACIFIC COAST WORKERS. • nVr^'^'^o?;^'''^"""' °^ *^' '''""y "^ *^^ University of California, in October, 1917, prepared a detailed estimate of the minimum outlav required for a workingman's family of husband, wife, and three childre^ of school age, in San Francisco. This amount she placed at |110 a STANDARDS OF LIVING. 23 month with the statement that it covered a minimum standard of wholesome living and not mere subsistence. "The typical worker in San Francisco," she states in her explanatory comment, "belongs to a class which insists upon having food enough to provide a palatable and somewhat varied dietary ; shelter and clothing that conforms to the traditional idea of the 'decencies' rather than the 'necessities'; some income to pay for schooling the children, for re- laxation in leisure hours, and something to provide against the risks of ill-health, invalidity and death. Though the total looks large, it is actually little above Miss Byington's estimates in her Homestead Study, considering the rise in the prices of food and clothing. Inspec- tion of the individual items will show that very modest sums have been assigned to each class of wants. The housewife who keeps within the amounts specified must still have to be a cautious purchaser, and cap- able in preparing foodstuffs and industrious in making clothing. "It would seem, then, that the present scale of wages is such that a family of man, wife and three children of school age cannot be main- tained without getting into debt or re;ceiving aid on much less than |110 a month. When the normal breadwinner is paid less than this sum, one of three things, any one of them harmful for the group and for the com- munity, is likely to happen : "1. Other members of the family will have to work to eke out the income; or "2. There will be less food than is necessary for the men to do eflB- cient work. The risks of ill-health to all members of the group and the consequent costs to the group and to the society are equally plain ; or "3. The group must go without many of the articles noted under Sundries and House Operations. The probabilities of stupidity, early breakdown, and dependency are evident, for the expression of the more subtle capacities, the capacity for foresight, for generosity, for sociabil- ity, depends on having some money for 'Sundries.' One of the most, important differences between social dependents, potential or actual, and self-supporting citizens is that social dependents are willing to go without the money for 'Sundries', and capable men and women recog- nize the imperative need for the money that will buy those things the term covers." 24 STANDARDS OF LIVING. LIVING EXPENSES FOR FAMILY OF FIVE. Items. Month. Rent $20.00 House Operation 11.50 Fuel 3.00 Light 1.50 Laundry -. .25 Soap, matches, etc 1 . 00 Garbage removal ■ .25 Furnishings — ^maintenance and additions 1.50 Telephone , 1.50 Incidentals — occasional help, repair of house 45.00 Tood 288 . 40 Clothing 74.50 Man 73 . 90 Wife 140.00 Children (3, all under 12 yearsi) . Sundries ^ Car fare Medicines Doctors and dentists Savings (for invalidity) Organization dues Insurance (burial) Stamps and stationery Newspapers, school supplies, etc. . Tobacco, drinks, etc Church, charity, .etc Gifts (Christmas, etc.) Grand total 22.50 4.00 1.25 5.00 5.00 1.25 2.00 .25 1.25 1.00 .60 1.00 Year. $240.00 138.00 36.00 18.00 3.00 12.00 30.00 18.00 18.00 540.00 288.40 270.00 48.00 15.00 60.00 .60.00 15.00 24.00 3.00 15.00 12.00 6.00 12.00 Total. $240.00 138.00 540. GO 288.40 $1,476.40 EXPENDITURE FOR CLOTHING." MAN. Article. Price. 1 business suit (at $20 lasts 2 years) $10.00 1 overcoat (at $20 lasts , 5 years) 4.00 1 extra trousers 5.00 4 shirts S.OO 5 collars 75 2 cravats 50 3 underwear 5.00 2 nightwear 2.00 pairs SOX 1.5D 2 pairs shoes 10,00 Repairs on shoes 3 , 75 1 pair slippers, gum shoes, etc 1.25 Handkerchiefs 1.00 I'hat (at $3.00 lasts 2 years) 1.50 1 cap 75 Sundries — Muffler, sweater, gloves, purse, watch fob, umbrella, etc 6,00 $65.00 Article. Price, 1 street dress (at $20 lasts 2 years) $10.00 1 house dress 3,00 Waists 6.00 Stockings 3.00 Aprons 90 Underwear 6 .00 Hats 6 . 00 Gloves l.BU Coat (at $20 lasts 2 years) 10.00 Handkerchiefs 1 , BC 2 pairs shoes 10.00 Repairs on shoes S.YIi House shoes '. . 3,25 Sundries — Hairpins, veils, toilet articles, repairs of clothing, frills, etc B.Oll 1 ceremonial dress (at $21 lasts 3 years) .. . 7.00 90 $73 CHILDREN (3 under 12) Article. Price. 9 suits or dresses $26 . 00 3 coats 16.00 15 sets of underwear. . 16.00 24 pairs stockings 8.00 3 to 5 hats 5.00 Sundries — >Cravats, rib- bons, mufflers, sweat- ers, aprons, rompers, etc. 17.00 $140.00 SUMMARY TABLE. Items. Amounts. f/-"t $ 240.00 House operation ^ , , 138.00 j;?°i. ! 540!00 Clothing 288.40 Sundries 370.00 Grand total $1,476.40 STANDAEDS OF LIVING. 25 The accompanying budget is not one for an ideal family. The ideal wife is one who wastes no calories in food preparation and one having the expert knowledge of sewing of a graduate in domestic economy; but few actual wives have had the benefit of such education. The budget is, however, a generalised budget. Thus some men smoke and some do not. The item for smoking should be generalized, very much as the statistical term, the arithmetic mean, is a generalized term. Actual budgets vary around a particular definite level, just as men vary in stature and weight. Particular extremes are therefore not cited ; but the items have been set near an approximate arithmetic mean of budgets, many of which have been collected from existing families; although there is some argument for setting items nearer the upper variations than near the mean. The budget is for a family of five. Three children are chosen for various reasons, (a) Three children at least are necessary for the race to perpetuate itself, (b) Federal and state experts do not make out budgets for less than families of five; thus, neither public nor expert opinion sanctions a smaller standard, (c) Standards of a warring and industrially competing nation would seem to demand three children as a minimum. . (d) Unmarried men are less desirable than married men, individually and socially, physically and morally; and the economic barrier to marriage is recognized as an important one. (e) The family of five, while larger than the average in the company's employ, may nevertheless be taken as the standard family of workmen receiving the maximum hourly rate, and the lower differentials worked out from this rate. REMARKS ON CLOTHING BUDGET. The clothing estimates are made on the assumption that the wife does some sewing and remaking of some garments for the children. The figures are based on estimates of the life of garments to fractions of years. The clothing is also for a generalized family. CLOTHING. Man — Top coats (mackinaw-overcoat, sweater) . Suits (uniform, suit, extra trousers) Slices (and repairs) Overshoes Underwear (woolen and cotton) Night garments ; Hats (uniform cap and hat) Shirts (fiannel and cotton) Sox, Gloves (average conductor and motorman) . Ties, collars and handkerchiefs Suspenders and garters Incidentals (cuff buttons, brush, etc.) Total. i 12.50 .34.00 14.00 1.50 6.00 1.50 3.00- 6.50 3.00 5.00 2.00 1.00 .50 $90.50 26 STANDAEDS OF LIVING. CLOTHING — Continued. Woman — Top coat Suits Shoes (and repairs) Rubbers Underwear • Niglitgowns Underskirt Corset Kimono • ; Waists House dresses Street dress Hats Gloves • Incidentals (veils, pins, purse, brush, slippers, handfs., etc.) Stockings Aprons Umbrella' i Total $ 8.00 12.50 14.00 .50 5.00 3.00 .00 .00 .50 4.50 5.00 7.50 9.00 2.50 4.50, 2.50- 2.00 1.00 Boy of 13 or 14 years — Top coat (mackinaw and sweater) Suit (and trousers) Shoes (and repairs) Underwear Night garments Hats Shirts Stockings Ties, handkerchiefs, etc Total Girl of 8 or 9 years — Top coat (and sweater) $ 5.00 12.00 1.50 5.75 1.00 1.50 1.75 2.0O 1.00 •1.00 .00 Shoes (and repairs) , Underwaists and garters Dresses (school and best) Petticoat (or bloomers) Night garments Hats Stockings KiDbons and handkerchiefs i Umbrella Underwear Total $32.50 Boy of 5 or 6 years — Top coat ( and sweater) Shoes ( and repairs) Suits (wash, best and coveralls) Rubbers . Underwaists and garters !!!!!!! Night garments Hats (and caps) Waists (and blouses ...!*. Mittens, ties, handkerchiefs Stockings Underwear !!!!!!!!!!!!!!!!! Total I $ 4.00 11.00 8.00 1.50 1.50 1.00 1.25 2.00 .75 2.00 .00 $33.00 STANDARDS OF LIVrNG. 27 REMARKS OX FOOD BUDGET. Various dietaries with diflfering proportions of meats, vegetables, fats, etc., have been constructed and each totals nearly the same figure. The calorie requirements are slightly over 12,000 a week for a family of five, distributed as follows : man, 3,400 ; woman, 2,700 ; boy of thirteen or fourteen, 2,700 ; girl of eight or nine, 2,000 ; boy of five or six, 1,500. The figure for meat is a little lower than is actually found among the carmen's families, but it is quite probable that during war time the item for meat will become progressively lower. FOOD Cereal $ 26.00 78.00 41.60 98.80 16.64 .S2.00 93.60 23.40 87.36 16.00 Vegetables Fruit Meat and meat substitutes , Fats Milk . Total $533.40 REMARKS ON SUNDRIES. The insurance and savings item is laTger than actually occurs, due probably to the fact that expenses and wages do not at present permit saving. The item is conservatively low. Medical and dental care varies widely, but $60 seems to be near the present average. The miscellaneous item is included because it actually exists. SUNDRIES. Amusements (movies, vacations, picnics, etc.) Education and literature Insurance and savings Comforts (tobacco, candy, Christmas, etc.) . . Organizations Dental and medical care Incidentals (stamps, barbers, stationery, etc.) Household (furniture, laundry, tools, etc.) Miscellaiieous (exigencies and waste) Total t 30.00 11 (K) 130 00 30 no 20.00 1 60.00 1 25 00 40 00 20 00 $366.00 REMARKS ON RENT, ETC. In some houses the water is not included in the rent, cently risen, and the estimate is on the proposed raise. Gas has re- RENT. ETC. Rent and water Gas Light Fuel Car fare. . .-. Total $184.00 20.00 15.00 60.00 35.70 $314.70 28 STANDARDS OF LIVING. REMARKS ON THE RATE OF WAGES TO BE SET, BASED ON THE STANDARD OF LITING. The standard of living estimated for a carman's family is |1,520 a year at prevailing prices. If the employe six years and over with the company averages 288 hours of work a month, then his rate of pay should be 43 cents an hour in order to earn the standard of living wage. If the company maintains the present differential for years of service in the employ, then a man five years in the service should receive 41 cents; one for four years, 40 cents, and so on, to 36 cents for the first six months of service. Light may be thrown on the wage increase from another angle, that of the correlation of rising prices and rising wages. A survey recently conducted in Seattle by the departments of Economics and Sociology of the University of Washington, for the United States Government, showed that for the eighteen months since June 1, 1916, the cost of liv- ing, including rent, fuel, sundries, food, and clothing, had risen 34 per cent, and figures based on various prices indicated a continued rise of considerable magnitude for 1918, despite the efforts of Mr. Hoover. The maximum hourly rate of wages for carmen, June 1, 1916, was 31 cents. If the carmen six years and over in the service maintain the same standard of living in October, 1917, that they had in June, 1916, the maximum rate should be 41.5 cents. This figure would represent a lowering of the standard of living from December 1, 1913, when the 31 cent rate went into effect, because the cost of living has risen more since December 1, 1913, than it has since June 1, 1916. This figure of 41.5 cents is estimated for October, 1917, a time when prices are less than they will be in the Spring of 1918. So, even assuming a continuance of the same standard of living as formerly, the hourly wage should be somewhat above 41.5, probably several cents. Inquiry has recently been made of the foremost authority on prices in the United States as to the probable fall in prices after the war, or their probable continuance at a high level. The reply was that a definite prediction cannot be made, but probabilities, he thought, were for continued high prices. STANDARDS OF LIVING. 29 IV— BUDGET PROPOSED BY SEATTLE AND TACOMA (WASH.) STREET RAILWAY EMPLOYES. In the course of the arbitration proceedings between the Seattle and Tacoma street railway companies and their employes, the attorneys for the employes, Reynolds and Harrow, submitted in their brief a minimum budget for the street railway workers, based on evidence which had been placed before the Board of 'Arbitration. After com- piling retail prices, they weighted the prices of food and fuel according to the Washington State Bureau of Labor budget. COST OF HVIKG FOE FAMILY OF FIVE PERSONS. Groceries, meats and fish $540.95' Fuel 59.70 Clothing' for wife 174.47 Clothing for girl of 12 years 90.56 Clothing for boy of 14 years ' 76.04 Clothing for extra child 83.30 Clothing for man 187.50 Maintenance household equipment 60.00 Education of children 12.00 Dues to church or fraternal society 12.00 Dentistry, medicine, etc 60.00 Insurance 120.00 Reading matter, music, etc 30.00 Savings for old age 120.00 Gas for household use : 22.16 Electric light 1. . . 12.00 Rent and water 180.00 Street car fare 65.00 Tobacco, ice cream, etc 12.20 Total $1,917.88 30 STANDARDS OF LIVING. V— BUDGET AWARDED TO SEATTLE AND TACOMA (WASH.) STREET RAILWAY EMPLOYES. The Board of Arbitration referred to in the previous section awarded the following minimum budget as the basis of its wage award, in December, 1917: FINDINGS OF THE BOARD OF ARBITRATION APPOINTED TO DETERMINE MATTERS IN CONTROVERSY BETWEEN THE PUGET SOUND TRAC- TION, LIGHT & POWER CO, THE TACOMA RAILWAY & POWER COMPANY AND THEIR EMPLOYES. Groceries — Meat — Fish Fuel .*. Clothing — man Clothing — woman Clothing — girlof 8or9 Clothing — boy of 14 ., Clothing — ^boy of S or 6 Maintenance of household equipment. Education Church — Fraternal dues Medicine — doctor, dentist Insurance Reading matter, music Savings Gas Electric light Rent and water Street car fare Tobacco, ice cream Recreation — movies, etc Incidentals — stamps, barber, etc Miscellaneous Total tl,S0S.60 $533.40 60.00 90.. SO 87.00 32. SO 48.50 33.00 40.00 11.00 20.00 60.00 30.00 * 100.00 20.00 15.00 184.00 35.70 30.00 30.00 25.00 20.00 *See Education. Minimum Comfort for one year for a family of five. TOTAL BUDGET Clothing Feed Sundries Rent, etc Total S 291.50 533.40 366.00 314.70 $1,505.60 REMARKS ON TOTAL BUDGET. This budget may be called a minimum comfort budget and is slight- ly higher than a minimum health budget. Various minimum health bud- gets have been constructed and vary slightly from city to city and significantly from year to year as the cost of living^ rises. The minimum comfort budget has been rarely set by experts. Theoretically such a standard would vary according to the definition of comfort of the par- ticular investigator. Practically such varying levels are not as great as would seem theoretically because minimum comfort budgets, actu- ally existing, group around a definite level. STANDAEDS OF LIVING. 31 VI— A MINIMUM MONTHLY DIET AND ITS COST. The cost of a minimum montlily diet upon which health can be main- tained by a family of five has been estimated by Professor Jaffa, of the University of California, at $45.32 per month, or $543.84 annually. The cost of this diet he shows has advanced from $27.09 a month in 1912, and $29.66 a month in 1914, to $45.32 in 1917, an increase of 67 per cent in the ten years, 1907-1917. The detailed statement of this diet and its increase in cost, is as follows : TABLE SHOWING INCREASE IN COST OF FOOD FROM MAT, 1907, TO MAT, 1917. Minimum Diet on Wliich Health Can Be Maintained for a Worl^ngman, His Wife and Tbree CliQdren Between 4 and 14 Tears of Age. Food materials. Class I — Meat and fish. Milk Eges . Beans Class II— Flour . . . Cereals . Macaroni Rice Class Ill- Potatoes . . Vegetables Fruits .... Class IV— Butter Oils and fats. Class V— Sugar Extras — Coffee and tea. Sundries Total, per month $27.09 Food and cost for one month. Pounds 1907 SO 120 6 60 17 4 10 3b 55 60 $5.75 4.80 .81 .40 1.88 .49 .28 .60 .70 1.38 2.25 2.29 1.35 .73 2.00 1912 $7.25 4.80 1.12 .40 1.92 .77 1 fS 1.6B 2.eo 2.65 1.90 1.00 2.30 $29.66 1916 $8.00 4.80 1.08 .40 1.92 1 02 .3i .60 1.05 1 66 2.50 2.40 2.ao 1.00 2.50 $32.99 $10.00 6.00 1.66 1.60 4.80 1.36 .50 2.17 1.66 2.60 3.60 Z.50 2.25 1.00 3.00 $45.32 Sundries include yeast, corn starch, cocoa, cheese, syrup, salt, etc. VII— TENTATIVE BUDGET OF PHILADELPHIA BUREAU OF MUNICIPAL RESEARCH. On December 20, 1917, the Bureau of Municipal Eesearch of the City of Phila'delphia, which was organized to promote efficient and scientific management of municipal business, submitted a tentative budget as a minimum standard of living for a workingman's family. It was accom- panied by the following statement : 32 STANDARDS OF LIVING. "A recent press notice of the Patriotic Education Society, in com- menting upon the present labor situation, states that 'the Government must make a comprehensive study of living conditions in all sections of the United States. ********** Then Govern- ment arbitrators can say, with real knowledge of conditions, what is a fair day's pay, instead of basing their decision on the argument of might.' "The world tragedy now upon us is forcing us to think fundamentally on many issues that we have been wont to pass over superficially. In the statement quoted above we have a bit of fundamental thinking on the perennial issue of a 'fair day's pay' that is decidedly encour- aging. The 'law of supply and demand,' which has served for so long to blind men to the real social significance of the wage question, is quiet- ly left out of account and 'living conditions' are frankly recognized as the vital factor in determining wages. In other words, we are asked henceforth to make the standard of living that we wish our citizens to maintain our prime concern in dealing with labor. "The Bureau of Municipal Eesearch is in hearty agreement with this view. As a matter of fact, in its endeavor to arrive at a 'fair day's pay' for laborers employed in the city government, it has begun an inquiry into the cost of living of a workingman's family in Philadelphia. As a result of this inquiry it is hoped to establish a standard of living, expressed in actiial goods