Americans enjoying highest stand of living in history.

Some may think me naive, but I have never had it so good, really.


Americans enjoying highest standard of living in history, study finds
Look at past century shows trends in income, spending.
By Lisa Anderson
CHICAGO TRIBUNE


Sunday, June 25, 2006

NEW YORK ?- Americans have never had it so good.

Gas prices might be up. The stock market might be down. Job security might seem an illusion, and there's not yet an iPod in every pocket. But, according to the government, American families have never earned more, spent less on necessities or enjoyed a higher standard of living than they do right now.

That information comes from a longitudinal study by the U.S. Bureau of Labor Statistics, which, for the first time, examines a century instead of just a year in its longstanding survey of consumer expenditure.

The report, "100 Years of U.S. Consumer Spending: Data for the Nation, New York City, and Boston," paints a purse-strings portrait of American society from 1901 to 2002-03 by tracing the impact of significant events of the 20th century on consumer spending patterns.

If, indeed, Americans are what they spend, the survey vividly illustrates how much they have changed in 100 years.

"In many ways, the only thread of commonality between U.S. households in 1901 and in 2002-03 is their geographic location," as the 70-page report puts it.

In 1901, for example, the average household had $750 in annual income, with about 9.5 percent of that earned by children, to support an average family of 4.9 people. Most of that money, 79.9 percent, went to food, clothing and housing.

By 2002-03, the average American family was earning $50,302, and statisticians no longer mentioned children as income producers. Moreover, the average household contained 2.5 people, and only 50.1 percent of the income went to food, clothing and housing.

The report stresses that this represents a real threefold increase in income: The family would be earning $2,282 restated in 1901 dollars.

The so-called good old days hardly were so good, said Michael Dolfman, the Bureau of Labor Statistics regional commissioner in New York, who co-authored the report with Denis McSweeney, his bureau counterpart in Boston. New York and Boston were broken out because they are two of the nation's oldest urban areas.

"I come from the generation that, when we look back at the turn of the century, we see it as a halcyon time, when the pace of life was different and it was a very civil, pleasant time. Looking at the results, we found that at the dawn of the 20th century, life in the United States, and particularly in New York, was very difficult," said Dolfman, 63.

Household expenditures on the necessities of food, clothing and housing provide windows into the changing lives of families. Shifts in what families spent on food, in particular, tell of major changes at the kitchen table over the century.

In 1901, food was the single biggest expense for the average family, claiming 42.5 percent of its entire income. With most jobs paying less than 30 cents per hour, food was expensive: The average cost per pound was 13 cents for bacon, 27 cents for butter and 22 cents for a dozen eggs.

As mass production made food more plentiful and cheaper, the share of the family budget taken by food steadily declined, dropping to 13.1 percent in 2002-03. However, food remained the largest single expense until 1950, when housing, driven by a postwar boom in home ownership, supplanted it.

Though home ownership rocketed from 19 percent at the start of the 20th century to 67 percent at the dawn of the 21st century, who lives in those homes has changed.

The number of single-person households has risen from 16.8 percent in 1960 to 29.5 percent in 2002-03.