This section is from the book "Elementary Economics", by Charles Manfred Thompson. Also available from Amazon: Elementary Economics.
Quite as important as the differences in the sizes of incomes is the manner in which families of various groups expend their respective incomes. Some years ago the United States Commission of Labor made the following estimate:
Object of Expenditure | Income Under $200 | Income $300 And Under $400 | Income $500 And Under $600 | Income $700 And Under $800 | Income $900 And Under $1000 | Income $1200 And Over |
Percent | Per Cent | Per Cent | Per Cent | Per Cent | Percent | |
Food.... | 49.64 | 45.59 | 43.84 | 38.89 | 34.34 | 28.63 |
Rent........... | 15.48 | 14.98 | 15.15 | 15.60 | 14.96 | 12.59 |
Clothing... | 12.82 | 14.14 | 15.27 | 16.33 | 16.84 | 15.71 |
Fuel.... | 7.07 | 6.04 | 5.63 | 4.42 | 4.00 | 2.57 |
Lighting.......... | 1.01 | 0.98 | 0.97 | 0.88 | 0.74 | 0.45 |
All other purposes .. . . . | 13.98 | 18.27 | 19.14 | 23.88 | 29.12 | 40.05 |
Many other investigations of incomes have been made and all seem to point to the same general conclusion:
1. As the income of a family increases the relative amount spent for food decreases.
2. Approximately the same relative amount is spent for rent irrespective of size of income.
3. Increase in income is accompanied by an increase in the amount spent for education, recreation, amusement, etc.
 
Continue to: