Part 4

Two methods of compiling the budgets were followed:--A simple addition was made of the particulars of the expenditure on each item separately recorded on each of the budgets. These particulars consisted of the expenditure on food, sundries, and rent for one week in June, 1922; the particulars of yearly expenditure on items of clothing, fuel and light were reduced to a weekly average by dividing by 52, before adding. The resulting totals gave the present average weekly expenditure on each article, and consequently the proportion which the expenditure on each article bears to the total expenditure of the average wage-earning household.

A more complex method of compilation was also adopted which should lead to an even more accurate result.

It was found by analysis of the Census figures that the proportion of children under 14 to adults (persons over 14) is approximately as 2 to 5, and an adjustment was made to bring the budgets into conformity with this proportion in order that they might truly represent the actual proportions of the population of the country, the assumption being that the percentage rise in the price of articles mainly consumed by children might be higher or lower than the rise in the prices of articles mainly consumed by persons over 14.

The budgets were accordingly classified into three groups, viz.:--"S" or simple households, consisting of not more than two persons over 14 years, and with one or more children under 14 years; "C" or complex households, consisting of more than two persons over 14 years, and with one or more children under 14 years; and "A" or adult households, in which there were not any persons under 14 years.

It was necessary to multiply the "A" group by 3, in order to bring the proportionate number of adults and children in the budgets with which we were dealing into conformity with the national proportion (5 to 2). The figures for the three groups having been totalled separately, those obtained for the "A" group were weighted accordingly.

It was found, however, that the difference between the "weights" obtained by the first and by the second methods were so small as to be quite negligible, as is shown by the following tables:--

PERCENTAGE INCREASES FROM JULY, 1914, TO MARCH, 1922, AS SHOWN BY THE APPLICATION OF POST OFFICE PRICES.

----------+-------+-----------+-------+--------+-----------+--------- | | | | Fuel | | Total Budget | Food. | Clothing. | Rent. | and | Sundries. | for all Grouping. | | | | Light. | | Items. ----------+-------+-----------+-------+--------+-----------+--------- S+C+A | 99.8 | 97.1 | 27.3 | 120.6 | 104.2 | 95.5 S+C+3A | 99.9 | 97.3 | 27.3 | 124.9 | 104.1 | 95.7 ----------+-------+-----------+-------+--------+-----------+---------

PERCENTAGE INCREASES FROM JULY, 1914, TO MARCH, 1922, AS SHOWN BY THE APPLICATION OF MINISTRY OF LABOUR AND MINISTRY OF LOCAL GOVERNMENT PRICES.

----------+-------+-----------+----------+--------+-----------+--------- | | | | Fuel | | Total Budget | Food. | Clothing. | Rent. | and | Sundries. | for all Grouping. | | | | Light. | | Items. ----------+-------+-----------+----------+--------+-----------+--------- S+C+A | 88.2 | 91.4 | 27.3 | 116.8 | 97.0 | 86.9 S+C+3A | 88.3 | 92.0 | 27.3 | 117.2 | 96.9 | 87.0 ----------+-------+-----------+----------+--------+-----------+--------- [A: Figures obtained for Local Government Board only.]

It may be mentioned here that if weights are obtained for the "S" group of households only, i.e., for an average of two adults, and 3.5 children, the final increase in the cost of living figures would be 91.2 for March, 1922, and 84.6 for June, 1922, i.e., practically identical with the figures obtained by "weighting" in accordance with all the budgets.

(4) Table of Weights.

The following Table shows the actual Irish "weights," representing the proportionate expenditure by the average wage-earning household on the various commodities, as compiled from the budgets received.

The actual Irish weights or proportions of expenditure on each item are as follow:--

-------------------------------------+------------------------------------ Total expenditure 100 | Food 57.05 -------------------------------------+------------------------------------ Beef 5.18 | Flour 3.70 Mutton 2.94 | Oatmeal, etc .97 Fresh Pork .63 | Rice, Sago, etc. .45 Sausages, Black Puddings, etc. .82 | Potatoes 3.16 Bacon, Pigs' Heads, etc. 5.23 | Other Vegetables 1.33 Fresh Fish .61 | Tea 3.80 Cured or Tinned Fish .16 | Sugar 3.24 Butter 6.91 | Jam 1.12 Cheese .26 | Other Food .95 Margarine .18 | Meals eaten at Shops, Lard .25 | Hotels, etc. .70 Fresh Milk 4.56 | Condensed Milk .09 | Eggs 3.44 | Total Food 57.05 Bread 6.37 | -------------------------------------+------------------------------------ CLOTHING 17.48 -------------------------------------+------------------------------------ Women's:-- Girl's (over 6):-- Coats .69 | Hats .37 | Coats .50 Costumes 1.09 | Hats .23 Blouses, etc. .39 | Dresses .69 Skirts .21 | Stockings .20 Stockings .24 | Combinations .13 Combinations .15 | Stays .11 Corsets .19 | Petticoats .15 Underskirts .18 | Chemises .13 Chemises .19 | Boots and Shoes .71 Boots and Shoes .92 | Other Clothing .19 Other Clothing .27 | -------------------------------------+------------------------------------ Men's:-- Boy's (over 6):-- Overcoats .83 | Overcoats .27 Suits 2.60 | Suits .83 Hats .38 | Caps .07 Singlets .30 | Shirts .17 Drawers .30 | Stockings .12 Shirts .55 | Boots and Shoes .56 Socks .32 | Other Clothing .13 Boots and Shoes 1.33 | Other Clothing .34 | Children (under 6):-- | Clothes, Boots, etc. .45 | | Total Clothing 17.48 -------------------------------------+------------------------------------ Rent 5.41 -------------------------------------+------------------------------------ Fuel and Light 7.04 -------------------------------------+------------------------------------ Coal 3.14 | Electricity for Cooking -- Turf 1.79 | Candles .33 Firewood .34 | Paraffin Oil .67 Gas for Lighting .40 | Other Fuel and Light .05 Gas for Cooking, etc. .29 | Electricity for lighting .03 | Total Fuel and Light 7.04 -------------------------------------+------------------------------------ Sundries 13.02 -------------------------------------+------------------------------------ Soap 1.12 | Other Sundries 8.41 Pipe Tobacco 2.11 | Cigarettes 1.38 | Total Sundries 13.02 -------------------------------------+------------------------------------ Total Expenditure 100.0

NOTES ON THE BUDGETS.

(a) Reliability of Budgets. Tests.

As a test of the reliability of the budget returns several sets were taken at random and were arranged in two groups having a common factor of approximately equal numbers of persons and equal total income. It was found on addition that the proportion of total expenditure spent on each description of food, clothing, etc., was approximately the same in each family and income group. Thus we treated the first 30 budgets from households with small and large incomes in this manner, dividing them so that each lot of 15 would have about the same number of persons and the same income. The selection was made without any reference whatever to expenditure, and the following were the results:--

PERCENTAGE EXPENDITURE.

1st Lot 2nd Lot of 15. of 15. Food 54.3 53.2 Clothing 20.9 20.3 Rent 6.6 6.7 Fuel and Light 6.7 6.7 Sundries 11.5 13.1

NUMBERS IN THE HOUSEHOLD.

Under 4 8 3 4 to 13 30 31 14 and over 57 59 -- -- Total, 95 93

Total Weekly Incomes 1597s. 1543s.

The Household Budgets in the "S" Group were separately tested and the following results were obtained:--

------------------------------+------------------------------------- | INCOME OF HOUSEHOLD. |-------+------+------+------+-------- Proportion of Expenditure | Under | L3 | L4 | L5 | L6 under each of the following | L3 | | | | upwards sub-divisions:-- | | | | | |-------+------+------+------+-------- Food | 61.1 | 60.4 | 56.3 | 48.0 | 41.4 Clothing | 15.7 | 13.7 | 19.3 | 19.4 | 17.7 Rent | 5.3 | 6.6 | 5.0 | 8.8 | 12.4 Fuel and Light | 8.7 | 7.6 | 7.3 | 8.1 | 9.0 Sundries | 9.2 | 11.7 | 12.1 | 15.7 | 19.5 |-------+------+------+------+-------- Total | 100 | 100 | 100 | 100 | 100 | | | | | ------------------------------+-------+------+------+------+--------

This test showed that the budgets we used conformed with common experience, and is, therefore, evidence of their reliability.

(b) Comparison of English and Irish Weights.

The weights used in England in compiling the British index figure were compiled from budgets collected as long ago as 1904. These show a pre-war standard of living and the final index figure shows the percentage increase in expenditure necessary to maintain that precise standard of living absolutely unchanged at the present day.