{"id":3780,"date":"1946-01-01T01:00:00","date_gmt":"1946-01-01T01:00:00","guid":{"rendered":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/january-1946-vol-27-no-1-standards-of-living\/"},"modified":"1946-01-01T01:00:00","modified_gmt":"1946-01-01T01:00:00","slug":"january-1946-vol-27-no-1-standards-of-living","status":"publish","type":"rbc_letter","link":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/january-1946-vol-27-no-1-standards-of-living\/","title":{"rendered":"January 1946 &#8211; Vol. 27, No. 1 &#8211; Standards of living"},"content":{"rendered":"<div id=\"layout-column-main\">\n<p class=\"boldtext\">The phrase &#8220;Standard of Living&#8221; sometimes                     may not mean very much in making comparisons because standards                     are so varied as between countries, sections of a country,                     individuals, and periods of time. The object of this article                     is to come as close to a non-technical appraisal as is                     possible, to indicate the way in which standards are improving,                     and to scan the future. <\/p>\n<p> In primitive times it was sufficient for human beings to                     get enough to eat, even of the most coarse food, and skins                     of animals to provide shelter. This condition has improved,                     century by century, until in addition to subsistence there                     are required comfort and ease, happiness and spiritual well-being.                   <\/p>\n<p> Disregarding the inconveniences and hardships of pioneer                     times, when families living in isolation produced their own                     food, clothing, and other needs, there are unthinking people                     who urge today that we should return to the &#8220;happy times&#8221;,                     but even if a large number desired it, history does not run                     backwards. Muscular toil has been replaced by the energy from                     coal, oil and electric power; we have become accustomed to                     automobiles, radios, refrigerators and bathtubs, placing us                     far ahead in living standards of the spinning wheel, hand                     churn, and ox-team farming. People now count as necessities                     for their way of life an amount, quality and variety of goods                     that would have amazed the nobles of a few score years ago.                     The great bulk of things consumed by today&#8217;s people are not                     made in the home, and efforts are concentrated on earning                     money with which to buy the goods they need. Even farmers                     are no longer occupied in making a living but in raising crops                     which they sell for cash with which to buy a living, <\/p>\n<p> Problems have arisen with the advances. Supposing that the                     advent of the machine as a substitute for hand work makes                     it possible for one man to produce the necessities for four                     men, then there are only three courses which may be followed:                     all four men may continue producing, but working only a quarter                     as many hours; the displaced three may turn to new work, producing                     more and better goods; or the three may do nothing. All of                     these have been tried since the steam engine ushered in the                     new system. The first may mean higher prices and lower incomes;                     the third, even if it were practicable, would be demoralizing                     for those with nothing to do. Out of the second there comes                     progress and a higher standard of living for all four. <\/p>\n<p> On the whole, the past is clear and the future bright. Imagine                     an historical museum in which the exhibits of man&#8217;s progress                     in making tools, house furnishings, means of transportation,                     books, and all else that enters into maintaining life and                     extending its comforts, divided into rooms each containing                     the exhibits of a century. Every succeeding room would be                     larger, because of the increase in variety of goods devised                     and made as men progressed; corresponding articles in various                     rooms would show improvement century by century, or early                     items would be replaced by entirely different articles which                     served their purpose better. The advancement in the past was                     based upon the fact that as engines exercised more energy,                     and men less, the men marched on to new occupations and new                     discoveries. There is no reason why this progress should not                     continue, and it must be remembered that every advance in                     the standard of living of even the most humble family helps                     the broad economic situation. <\/p>\n<p> Even the humblest improvement, however, cannot be achieved                     by such simple devices as those inaugurated by the dictatorships,                     like ordering employers to pay higher wages without increasing                     prices, or by forcibly withdrawing money, bonds and goods                     from one section and handing them to another. Wages of agricultural                     workers, for instance, cannot be raised arbitrarily 25 per                     cent without starting a train of events which might actually                     increase strain in a much wider field, and depress the general                     standard of living instead of raising it. Those who attempt                     to plan and manage improvements must know how changes will                     affect all the economy. <\/p>\n<p> In describing and measuring standards of living, family                     income is more significant than individual income, because                     a standard of living is a family matter, including as it does                     the kind of things customarily enjoyed by families in that                     class. Some will be looked upon as necessities, others as                     comforts, and still others as luxuries. The standard will                     rise as there is improvement in the quality of necessities,                     or increase in the quantity of comforts and luxuries which                     add to the contentment of the family. Normally, the standard                     of living best for a family is one which encourages healthy                     growth of its members in physical, mental and moral qualities,                     and leads to a higher type of life. An ideal standard would                     include features designed to enlarge the aesthetic and spiritual                     sides of man s nature. It will be seen that there is more                     to a standard of living than the mere actual level of consumption                     of food, clothing and other articles necessary to life. It                     includes a variety of influences &#8211; individual tastes, conventional                     ideas prevalent at the time as to the amount and kind of expenditure                     expected of the members of each class, and also, in its more                     ideal aspects, an increase of intelligence, energy and self-respect,                     leading to greater care in expenditures so as to obtain the                     most worthwhile returns-in happiness. There is no such                     thing as a true average good standard of living, because,                     even though we do not draw rigid lines between classes in                     the community, it must be admitted that people live in groups,                     every group being made up of fellow-workers, or of persons                     interested in the same hobbies, or of those who earn and spend                     with similar ends in view. So far as a family is concerned                     about constructing a standard of living, it must reach a compromise                     between individual tastes and the expectation of its group,                     and it will normally lean to the side that gives its members                     most satisfaction. Family requirements are built up gradually,                     and are modified gradually. The original standard was handed                     down from parents, and as the family develops it supplements                     and remodels, sometimes subtracts from, its living standard                     as the result of education and experience and social influences.                     Insofar as the family succeeds in realizing its attempted                     standard of living, it is happy, but when it tries to reach                     a standard beyond its capabilities, life for members of the                     family becomes increasingly unstable. <\/p>\n<p> Some persons are discontented, because they think along                     the lines of what the world &#8220;owes&#8221; them, and not about what                     they are worth to the world. People are given to imitation,                     and in their struggle to imitate a higher scale of living                     many get into difficulty in working and spending. Those who                     are governed, not by rational judgment of what will give the                     most true satisfaction, but by desire to do as they see some                     others doing, will feel cheated of life, though they are not                     poor. They do not realize that happiness depends as much upon                     the use of what buying power they have as upon its amount.                     On the other hand, in their attempt to climb from class to                     class, reaching for more buying power, men&#8217;s ambitions have                     stimulated them to greater efforts of mind and energy, with                     the result of improved living conditions and still wider fields                     in which to operate. To level families off at a fixed standard                     of living, to compel them to consume food and clothing and                     to live in houses at the dictate of authority, might result                     for a brief period in improvement in the physical well-being                     of some, but it could not be called a rise in the standard                     of living, because it would deny them the dignity of striving                     for their own advancement, and deprive them of many things                     which make life worth living. <\/p>\n<p> There has always been some dispute as to what are necessaries                     of life, and what are luxuries. The first necessities, of                     course, are food, clothing and shelter, but even in these                     there can be no sharp line drawn, since people&#8217;s opinions                     as to quality and variety vary so greatly. To wear clothes                     that are expensive because they are made for adornment; to                     eat expensive food because it is rare; and to live in a house                     chosen for its showiness or exclusive location; these may                     be luxuries. One authority has defined luxury as the satisfying                     of a desire at an expense so great that the spender will be                     compelled later on to forego the satisfaction of a more important                     want. <\/p>\n<p> Most people think of the standard of living as being based                     solely upon income, but there is need to differentiate between                     money income, which is the amount received in wages, salary                     or from other sources, and real income, which is the sum of                     the things a family can buy with its money. This is conditioned                     by fluctuations in prices and in the supply of goods available.                   <\/p>\n<p> It is interesting to look back over the course of wage income                     and prices. The wage index in certain mare groups of industries                     rose from 38.1 in 1901 to 107 in 1920, then fell to 85.1 in                     1933, and by 1944 it had risen to a new high record in these                     44 years, 137.5. In Canada the index of wages in the construction                     industry rose from 35 to 129 between 1901 and 1944. Other                     typical wage rate index figures are: <\/p>\n<table width=\"415\" border=\"1\" cellpadding=\"5\" cellspacing=\"0\" class=\"smltabletxt\">\n<tr>\n<td width=\"11%\" valign=\"top\">\u00a0<\/td>\n<td width=\"25%\" valign=\"top\" align=\"right\">Water Transportation<\/td>\n<td width=\"17%\" valign=\"top\" align=\"right\">Steam Railways<\/td>\n<td width=\"14%\" valign=\"top\" align=\"right\">Coal Mining<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">Metal Mining<\/td>\n<td width=\"17%\" valign=\"top\" align=\"right\">General Average<\/td>\n<\/tr>\n<tr>\n<td width=\"11%\" valign=\"top\">1901<\/td>\n<td width=\"25%\" valign=\"top\" align=\"right\">43.9<\/td>\n<td width=\"17%\" valign=\"top\" align=\"right\">33.7<\/td>\n<td width=\"14%\" valign=\"top\" align=\"right\">47.4<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">61.2<\/td>\n<td width=\"17%\" valign=\"top\" align=\"right\">38.1<\/td>\n<\/tr>\n<tr>\n<td width=\"11%\" valign=\"top\">1944<\/td>\n<td width=\"25%\" valign=\"top\" align=\"right\">140.7<\/td>\n<td width=\"17%\" valign=\"top\" align=\"right\">124.4<\/td>\n<td width=\"14%\" valign=\"top\" align=\"right\">146.0<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">125.2<\/td>\n<td width=\"17%\" valign=\"top\" align=\"right\">137.5<\/td>\n<\/tr>\n<\/table>\n<p> No figures are available for manufacturing industries at                     the turn of the century, but in 1911 the index stood at 45.0,                     and in 1944 it was 141.1. At the same time as these significant                     increases were being made in wage rates, the hours of work                     were being reduced from around 72 to 40. The long-term                     normal trend of prices and wages has been upward. Unfortunately,                     the cost of living index cannot be given for 1900, but there                     is a significant-enough comparison between 1913 and 1945.                     Whereas in this period the general average wage rate index                     has increased 99.4 points, the cost of living index, covering                     the basic needs of a family, has risen only 40.0 points. <\/p>\n<p> Both income and hours of work are qualified by the prices                     of things which enter into living, as is well known by the                     housewife who is compelled in her shopping to obtain the household                     goods she needs at the lowest price. Hers is not only the                     problem of buying food and other necessities, but of adjusting                     the individual expenditures of family members within the total                     money available. She needs to consider individualities of                     choice, and today she finds the choices in a state of flux,                     resulting in a crazy-quilt of buying which is not at                     all economical. A survey made in 1938 showed that family expenditures                     of the average urban wage earner were distributed in the following                     percentages; food 31; housing 19; clothing 12; fuel and light                     6; life insurance 5; furnishings 9; health 4; transportation                     6; recreation 6, and personal care 2. It is obvious that if                     the prices of the basic commodities and services are high,                     there will be less money left in the hands of the people to                     create a demand for other goods, and this will have an adverse                     effect upon raising the standards of living. When prices of                     indispensable goods can be reduced, then demand for auxiliary                     commodities will diversify production and spur the economy                     to the point where employment increases. <\/p>\n<p> To enable families to keep track of the trends in prices                     and to budget their incomes, most countries have set up cost                     of living indexes. Canada&#8217;s index is a measure of the month-to-month                     change in the cost of living of the average wage earner&#8217;s                     household. It attempts to record a fixed standard of living,                     and does not take account of higher expenses due to better                     living or wider spending. It is a point lost sight of by many                     who criticize the index that if it included higher expenses                     due to better living the result would not be a <em>cost <\/em>of                     living index, but the index of a higher <em>standard <\/em>of                     living. If it were attempted to include different things from                     month to month, and different quantities of the same thing,                     according to the vagaries of a family, the index would be                     useless as a guide, and as a record it would not differ greatly                     from that of the national income, because it would reflect                     the total purchases made by everyone. The index prepared by                     the Dominion Bureau of Statistics measures changes in the                     cost of a family budget which includes the same amounts of                     the same commodities and services, so that true comparisons                     may be made between periods far apart. If a family does not                     eat the commodities chosen as typical articles of diet, and                     does consume higher-priced articles, then the change                     in that family&#8217;s expenses of living will not agree with the                     cost of living index. <\/p>\n<p> Criticism is sometimes based upon the argument that the                     Bureau does not include every item in the family budget, but                     for reasons previously stated with regard to the peculiarities                     of families, this would not be possible. Instead, the Bureau                     explains that it obtains price reports on typical commodities,                     and &#8220;weights&#8221; them sufficiently highly to cover all items                     that should be in the group. For example, prices used in calculating                     the food index are collected from about 1600 stores, including                     independent and chain grocers and butchers. The quotations                     for each of the 46 budget food articles are averaged, and                     then multiplied by the budget quantity for each item to find                     the cost for that item. These individual cost figures are                     added together to find the total cost of the food budget;                     this figure is then expressed as a percentage of the corresponding                     reference period cost to provide the index. Income taxes are                     not included, because they. vary so greatly, depending upon                     income, family size, and other personal circumstances. An                     average would mean nothing, and every taxpayer would require                     an index of his own. <\/p>\n<p> With all this in mind, it is worth looking at the cost of                     living index of typical years (1935\/39 = 100): <\/p>\n<table width=\"415\" border=\"1\" cellpadding=\"2\" cellspacing=\"0\" class=\"smltabletxt\">\n<tr align=\"center\">\n<td width=\"9%\" valign=\"top\">\u00a0<\/td>\n<td width=\"11%\" valign=\"top\">Total Index<\/td>\n<td width=\"11%\" valign=\"top\">Food<\/td>\n<td width=\"11%\" valign=\"top\">Rent<\/td>\n<td width=\"11%\" valign=\"top\">Fuel &#038; Light<\/td>\n<td width=\"16%\" valign=\"top\">Clothing<\/td>\n<td width=\"16%\" valign=\"top\">Home Furnishings                         &#038; Services<\/td>\n<td width=\"14%\" valign=\"top\">Miscellaneous<\/td>\n<\/tr>\n<tr>\n<td width=\"9%\" valign=\"top\">Oct. 1945<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">119.7<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">133.3<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">112.3<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">106.7<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">122.4<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">119.4<\/td>\n<td width=\"14%\" valign=\"top\" align=\"right\">109.6<\/td>\n<\/tr>\n<tr>\n<td width=\"9%\" valign=\"top\">Sep. 1939<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">100.8<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">99.4<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">103.8<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">98.9<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">99.6<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">100.8<\/td>\n<td width=\"14%\" valign=\"top\" align=\"right\">101.3<\/td>\n<\/tr>\n<tr>\n<td width=\"9%\" valign=\"top\">Sep. 1920<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">150.5<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">188.1<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">100.2<\/td>\n<td width=\"11%\" valign=\"top\" align=\"right\">119.9<\/td>\n<td width=\"16%\" valign=\"top\" align=\"right\">213.1<\/td>\n<td width=\"30%\" valign=\"top\" colspan=\"2\" align=\"center\">110.3<\/td>\n<\/tr>\n<\/table>\n<p> Food is the primary and most essential need. The International                     Labour Office reports that in practice the percentage of expenditure                     for food can be used as a rough index of the worker&#8217;s level                     of living. It appears that, with increasing income in each                     area studied, smaller percentages are spent for food. Hence,                     the smaller the proportion spent for food, the higher the                     standard, or conversely, the higher the proportion spent for                     food, the lower the standard of living. There are some families                     which spend 60 per cent of their income on food, whereas the                     average expenditure of the Canadian family is about 31 per                     cent of the budget. <\/p>\n<p> The second major item in the family&#8217;s cost of living is                     shelter. Every family can lay down three main criteria; protection,                     size, and rent. In addition, every individual family will                     have other tests, such as nearness to a working place and                     to a shopping district, good neighbors, healthful surroundings,                     and so on. Experts declare that the greatest expenditure that                     can be made safely for shelter is 20 per cent of the monthly                     income, and the index shows an average proportion of 19.1                     of living expenses devoted to housing. <\/p>\n<p> Clothing ranks high in the list of necessities, and there                     is even more divergence of consumer opinion as to what is                     fit in this category than in food or housing. In addition                     to the necessary virtues of providing protection against the                     weather, and conforming with standards of decent covering                     common to the community, clothing is expected to provide aesthetic                     satisfaction, and no field of human activity is so mobile                     in reflecting the changing social, political and industrial                     times as is the world of fashion. Human nature has changed                     less than styles, and women will always be susceptible to                     fashion appeal based on aesthetic line and use of colour.                     At the same time, women trying to make the best use of income                     to get the most satisfaction out of life learn that efforts                     to be too style-conscious do not pay. In endeavouring                     to provide a guide, the Canadian index includes 31 clothing                     items that are of fairly standard make and have no pronounced                     seasonal price changes. These represent, in proper proportion,                     the important materials used in making clothing &#8211; cotton,                     wool, rayon, rubber and leather. Changes in quality are reported,                     and the Bureau of Statistics attempts to take a reduction                     in quality into account just as if it were an increase in                     price. <\/p>\n<p> There are other items which enter into the making of a standard                     of living, but they do not appear in the cost of living index.                     Education is in itself a good index of one phase of living                     standards. The percentage of the population attending school                     has risen from 52 in 1901 to 66, and the percentage of persons                     unable to read or write has decreased from 14 to 3. Social                     service, too, is important. What the community does for its                     people in the way of health measures and caring for those                     who need help has an important influence on the community&#8217;s                     standard of living. <\/p>\n<p> Effects of the war on standards of living have been varied.                     Most persons whose livelihood is derived from salaries have                     suffered a decline in their real income. To a degree this                     is also true of wage earners, but on the other hand thousands                     of wage earners have been receiving incomes which have advanced                     faster and farther than the cost of living. The tremendous                     expenditures by the government for war goods went for wages                     and materials, thus pouring into the hands of consumers an                     amount which far exceeded the additional demands of income                     tax and victory bonds. Per capita consumption of foods increased,                     as did purchases of available clothing, cosmetics, toys, jewelry                     and paper products. Comparing pre war per capita consumption                     with that of 1944, the Combined Production and Resources Board                     found the following percentage increases and decreases: <\/p>\n<table width=\"415\" border=\"1\" cellpadding=\"2\" cellspacing=\"0\" class=\"smltabletxt\">\n<tr>\n<td width=\"30%\" valign=\"top\">\u00a0<\/td>\n<td valign=\"top\" colspan=\"2\" align=\"center\">United                         Kingdom<\/td>\n<td valign=\"top\" colspan=\"2\" align=\"center\">Canada<\/td>\n<td valign=\"top\" colspan=\"2\" align=\"center\">United                         States<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">\u00a0<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">inc.<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">dec.<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">inc.<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">dec.<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">inc.<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">dec.<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Food<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">11<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">13<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">8<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Alcoholic beverages and tobacco<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">8<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">24<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">33<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Clothing, and footwear<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">34<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">22<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">23<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Housing<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">9<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">14<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Fuel and electricity<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">2<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">28<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">32<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Household goods (mainly electrical                         and metal products)<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">82<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">13<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">23<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Household goods (other)<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">51<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">15<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">26<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Reading matter<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">1<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">22<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">24<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Amusements<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">10<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">53<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">10<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Motor vehicles and operation<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">95<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">52<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">52<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Public transportation<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">13<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">95<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">87<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Miscellaneous services<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">33<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">11<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">19<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"30%\" valign=\"top\">Total consumption<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"14%\" valign=\"top\" align=\"center\">16<\/td>\n<td width=\"12%\" valign=\"top\" align=\"center\">16<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">16<\/td>\n<td width=\"11%\" valign=\"top\" align=\"center\">&#8211;<\/td>\n<\/tr>\n<\/table>\n<p> In practically all the basic needs of life, control has                     been exercised by the government. Every other country has                     experienced wartime pressures, and has adopted similar control                     measures to meet them. Everyone recalls the close of the first                     world war, when prices rose with dramatic suddenness until                     the cost of living index reached 150, compared with today&#8217;s                     119.7 and 1939&#8217;s 101.5. The price controls which have kept                     down the cost of living 30 points below the preceding war&#8217;s                     experience will be relaxed gradually, as hitherto scarce goods                     come into the market to absorb surplus cash. <\/p>\n<p> If Canada is to progress, as she has done in the past half                     century, opportunity needs to be made for private investment                     in productive enterprises, and such investment should be encouraged.                     New political and fiscal devices are not needed, but education                     would be beneficial if it made clear to the people that investment                     of savings in commodity-producing enterprises would provide                     interest on the investment, more jobs to give workers more                     cash income with which to buy all kinds of goods, and the                     opportunity for every family to raise its standard of living.                     Since 1900 Canadian manufacturers have increased the gross                     value of their products by 1,712 per cent, provided work for                     900,000 more persons, with the payment of 1,651 per cent more                     in salaries and wages. The quickening of the industrial pace                     brought about by war should be continued, if strong advances                     are to be made in living standards. <\/p>\n<p> Fullest success, however, can be attained only through international                     economic co-operation and peace. The economic policy                     of aggressor nations, so well revealed in recent years, was                     designed to provide industrial hacking for military forces.                     Those countries strove first of all for self-containment,                     and to that end they schooled their people in doing without                     even moderate comforts and in reducing their consumption of                     even the necessities of life. Democratic countries on the                     other hand, judge success by the living standards of their                     people. The economic system which provides the most to eat                     and wear, the best housing, and the greatest opportunity for                     comfort, is the most excellent from the democratic viewpoint.                     To achieve this, it is necessary, particularly for a country                     like Canada, with great natural resources, small population,                     and ample manufacturing facilities, to buy and sell in the                     widest possible area. Foreign trade is desirable, because                     it encourages production on a large scale, specialization                     in lines of goods likely to be stable, lower costs, and increased                     real income. Closed national economies shut out resources                     abundant in one country from another country where they are                     scarce, reducing the standard of living in both. Many nations                     of goodwill and good sense are trying to remove the political                     and economic obstacles to freedom of world trade, an objective                     to which all the people should give energetic support. <\/p>\n<p> There are no insurmountable economic difficulties to be                     overcome in achieving the desired end of advancing standards                     of living, but the task means more than passive acquiescence                     or luke-warm support. John Stuart Mill truly observed:                     &#8220;What constitutes the means of payment for commodities is                     simply commodities.&#8221; There needs to be work to back up desire,                     and we must be willing to import commodities produced by others,                     in exchange for the commodities we produce and export. <\/p>\n<\/p><\/div>\n","protected":false},"author":0,"featured_media":0,"template":"","categories":[1],"rbc_letter_theme":[],"rbc_letter_year":[26],"class_list":["post-3780","rbc_letter","type-rbc_letter","status-publish","hentry","category-uncategorized","rbc_letter_year-26"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>January 1946 - Vol. 27, No. 1 - Standards of living - RBC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/january-1946-vol-27-no-1-standards-of-living\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"January 1946 - Vol. 27, No. 1 - Standards of living - RBC\" \/>\n<meta property=\"og:description\" content=\"The phrase &#8220;Standard of Living&#8221; sometimes may not mean very much in making comparisons because standards are so varied as between countries, sections of a country, individuals, and periods of time. 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