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People Spent More And Saved Less, 1954 Records Show

NEW YORK—The American people had $107 billions left from their aggregate income in 1954 for discretionary spending or saving as they preferred after laying out a record $148 billions for the basics of food, shelter and clothing, and paying a $33 billion tab to the tax collector—Federal, State and local combined.

This discretionary income at the people's disposal in 1954 was the equivalent of some $600 for every man, woman, and child in the population and was greater than the total personal income in any year prior to 1942.

Out of this sum the people made a substantial addition to their nest egg in insurance and other savings. Figures compiled by the U.S. Department of Commerce show that total personal savings in 1954 exceeded $18 billions, a comparatively high level by past standards.

However, the temptation to spend when income is rising and growing competition for the consumer dollar were reflected in the fact that 1954's personal savings were $11.5 billions under the 1953 total, and that savings continued to decline and personal debt rose further in the first half of 1955.

The people also spent a half billion dollars more than ever before last year for medical care, indicating the increasing emphasis being given to health in the family expenditure pattern.