survey of current business may 1975 · 2015. 2. 9. · tax book profits shows a decline of $31...
TRANSCRIPT
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MAY 1975 / VOLUME 55 NUMBER
SURVEY OF CURRENT BUSINESS
CONTENTS
THE BUSINESS SITUATION
Revised First Quarter GNP 1
Price Developments 2
National Income and Product Tables 5
Industry Effects of Government Expenditures:An Input-Output Analysis 9
Part I.—Industry Effects of Government Transfer Paymentsto Persons and of Grants-in-Aid, 1963 and 1972 10
Part II.—Industry Outputs Attributable to GovernmentPurchases and to Other Purchases of GNP Financed by
Government, 1963 15
CURRENT BUSINESS STATISTICS
General S1-S24
Industry S24-S40
Subject Index (Inside Back Cover)
U.S. Department of Commerce
Rogers C. B. Morton / SecretaryJames L. Pate / Assistant Secretary
for Economic Affairs
Edward D. Failor / Administrator, SESA
Bureau of Economic Analysis
George Jaszi/ DirectorMorris R. Goldman/Deputy Director
SURVEY OF CURRENT BUSINESSEditorial Board: Jack J. Barne, Donald A. King,Martin L. Marimont, Stephen K. McNees, BeatriceN. Vaccara, Charles A. Waite, Allan H. YoungEditor: Dannelet A. GrosvenorStatistics Editor: Leo V. Barry, Jr.Graphics Editor: Billy Jo HurleyContributors to This Issue: Barbara L. Miles,Irving Stern, Charles A. Waite, Joseph C. Wake-field, Allan H. Young
Annual subscription, including weekly statistical supple-ment: $48.30 domestic, $60.40 foreign. Single copy $3.00.Order from Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C. 20402, or any CommerceField Office. Make check payable to Superintendent ofDocuments.
Annual subscription in microfiche, excluding weeklysupplement: $30 domestic, $38 foreign. Single copy $2.25.Order from National Technical Information Service, Spring-field, Va. 22151.
Address change: Send to Superintendent of Documentsor NTIS, with copy of mailing label. For exchange or officialsubscriptions, send to BEA.
Editorial correspondence: Bend to Bureau of EconomicAnalysis, U.S. Department of Commerce, Washington, D.C.20230.
The Secretary of Commerce has determined that the publication of this periodical is necessary in the transaction of the public business required by law of this Department. Use of funds forprinting this periodical has been approved by the Director of the Office of Management and Budget through September 1,1975.
U.S. DEPARTMENT OF COMMERCE DISTRICT OFFICES
Albuquerque, N. Mex. 87101316 U.S. Courthouse 766-2386.
Anchorage, Alaska 995O1632 Sixth Ave. 265-4597.
Atlanta, Ga. 3O3091401 Peachtree St. NE. 526-6000.
Baltimore, Md. 21202415 U.S. Customhouse 962-3560.
Birmingham, Ala. 352O5908 S. 20th St. 325-3327.
Boston, Mass. O2116441 Stuart St. 223-2312.
Buffalo N.Y. 142O2111 W. Huron St. 842-3208,
Charleston, W. Va. 253O1500 Quarrier St. 343-6181.
Cheyenne, Wyo. 82O012120 Capitol Ave. 778-2220.
Chicago, III. 60603Room 1406 Mid-Continental PlazjBldg. 353-4450.
Cincinnati, Ohio 45202550 Main St. 684-2944.
Cleveland, Ohio 44114666 Euclid Ave. 522-4750.
Columbia, S.C. 292042611 Forest Dr. 765-5345.
Dallas, Tex. 752021100 Commerce St. 749-1515.
Denver, Colo. 8O20219th & Stout Sts. 837-3246.
Des Moines, Iowa 50309609 Federal Bldg. 284-4222.
Detroit, Mich. 48226445 Federal Bldg. 226-3650.
Greensboro, N.C. 274O2203 Federal Bldg. 275-9111.
Hartford, Conn. O61O3450 Main St. 244-3530.
Honolulu, Hawaii 96813286 Alexander Young Bldg.546-8694.
Houston, Tex. 770O21017 Old Federal Bldg. 226-4231.
Indianapolis, Ind. 4620446 East Ohio St. 269-6214.
Kansas City, Mo. 641O6601 East 12th St. 374-3142.
Los Angeles, Calif. 9O02411000 Wilshire Blvd. 824-7591.
Memphis, Tenn. 381O3147 Jefferson Ave. 534-3213.
Miami, Fla. 3313025 West Flagler St. 350-5267.
Milwaukee, Wis. 532O3238 W. Wisconsin Ave. 224-3473.
Minneapolis, Minn. 554O1306 Federal Bldg. 725-2133.
Newark, N.J. 071O24th Floor Gateway Bldg.645-6214.
IVew Orleans, La. 7O13O432 International Trade Mart.589-6546.
New York, N.Y. 1OO0726 Federal Plaza 264-0634.
Philadelphia, Pa. 19106600 Arch St. 597-2850.
Phoenix, Ariz. 850O4112 N. Central 261-3285.
Pittsburgh, Pa. 152221000 Library Ave. 644-2850.
Portland, Oreg. 972O5921 S.W. Washington St.221-3001.
Reno, Nev. 89502300 Booth St. 784-5203.
Richmond, Va. 232408010 Federal Bldg. 782-2246.
St. Louis, Mo. 63105120 S. Central Ave. 622-4243.
Salt Lake City, Utah. 84138125 South State St. 524-5116.
San Francisco, Calif. 941O2450 Golden Gate Ave. 556-5860.
San Juan, Puerto Rico O09O2100 P.O. Bldg. 723-4640.
Savannah, Ga. 314O2235 U.S. Courthouse and P.O.Bldg. 232-4321.
Seattle, Wash. 98109706 Lake Union Bldg. 442-5615.
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the BUSINESS SITUATION
R,tEVISED figures put the decline inreal GNP and the increase in GNPprices in the first quarter a littlelarger than did the preliminary esti-mates a month ago. All major com-ponents of real GNP except net exportswere revised down fractionally. Netexports were revised up, as imports ofmerchandise dropped more than esti-mated initially. Revisions in priceswere generally small, partly offsetting,and followed no clear pattern.
The revised figures show the samepicture of first-quarter economicdevelopments as did the preliminaryestimates. In spite of a continuedslide in residential construction and abig drop in fixed business investmentother than autos, real sales of GNPstabilized because of a turnaround inpersonal consumption expenditures—mainly for autos—and increases in netexports and government purchases.However, heavy inventory liquidationset in, following accumulation of aboutequal magnitude in the fourth quarterof last year. The result was a largedecline in real GNP—somewhat largerthan the decline in the fourth quarter.Inflation abated substantially—toabout three-fifths to two-thirds of thefourth-quarter rate, depending on whichmeasure of GNP prices is used—butremained high by historical standards.
Corporate profits
The preliminary estimate indicatesthat the national income measure ofprofits—profits from current produc-tion—declined $10 billion from thefourth quarter. About one-half of thedecline was in profits originating in therest of the world and reflected reduc-tions in the profits of foreign petroleumoperations of U.S. companies. Profits
to a $10.9 billion decline in receipts.As a result, the deficit amounted to$54.7 billion at a seasonally adjustedannual rate, $30.2 billion above the$24.5 billion deficit in the fourthquarter, and $52.8 billion above the$1.9 billion deficit recorded in the thirdquarter.
The large increase in the deficithighlights the degree to which—bothautomatically and by design—the Fed-eral budget has moved to supporteconomic activity in the last severalquarters. Growth in expenditures, asmeasured in the NIPA's, has accelerated
Table 1.—Reconciliation of Changes in theImplicit Price Deflator for Personal Con-sumption Expenditures and ConsumerPrice Index, Seasonally Adjusted
1974
IV
1975
of most domestic industries were down,with the largest decline in manufactur-ing. Profits of the motor vehicle andpetroleum refining industries showedlarge declines while those of foodprocessors increased. These preliminaryestimates are based on less adequateinformation than usual and may besubject to large revision when moreinformation becomes available nextmonth.
The preliminary estimate of before-tax book profits shows a decline of $31billion from the fourth quarter. Inaddition to the $10 billion decline inprofits from current production, in-ventory profits were down $21 billion.In the national income and productaccounts (NIPA's), inventory profitsare measured by the inventory val-uation adjustment (with its sign re-versed). They are defined as theexcess of the replacement cost of goodstaken out of inventory over the cost at ',
^ 1. Implicit price deflator for personal consump-Wmch these gOOds are Charged to tion expenditures (percent change at annual
. & fe rate) 12.4 5.3
pro C ion. 2. Less: Contribution of shifting weights 2.7 -.8Inventory profits declined from $28 XT^ . New cars, domestic 2.4 —.5
billion to $7 billion as inflation abated. Fuel and ice.. -.1 -.2. . Gasoline and oil .1 .0
Much of the reduction in inventory otheritems .3 -.1profits Was due tO the turnaround in 3. Equals: Chain price index for PCE (per-£ cent change at annual rate) 9.7 6.1farm and food prices in the fourth ^ .^ .
*~ . 4. Less: Contribution of difference in weightsquarter of 1974. Due to falling farm of items common to the implicit price
, . , . . deflator for PCE and the CPI -.5 .0and food prices in the first quarter, ^ ^ 0r ^ Food away from home —.3 —.3inventory losses occurred on farm Food at home -.9 -.2
Rent -6 .oproducts and processed food withdrawn Automobiles,new .6 .0*: . ^ Gasoline -.1 -0from inventory. otheritems -.4 -.1
5. Less: Contribution of non-CPI items usedr , i . /. T^rrn j. • » ^ to deflate PCE .3 —.2federal sector oj NlPA's in the firstmifwrtai* Services furnished without paymentquarter by financial intermediaries -.5 -1.0
Otheritems .8 .8
The deepening recession was re- 6. Pius: contribution of CPI items not usedfleeted in a large increase in the first to deflate PCE.. 2.8 i.e
quarter Federal deficit as measured in SSSffltt?:.::::::::::::::: 2'e -.'4the NIPA's. Antirecession measures otheritems.' .1 -.1
helped boost expenditures $19.2 billion, 7- Equals: S™^*^--^*- 12.7 7.9and falling profits and wages contributed —
1
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SUEVEY OF CURRENT BUSINESS May 1975
dramatically: up at an annual rate of26 percent in the first quarter followinga 21 percent increase in the fourthquarter of 1974—both sharply higherthan the average 17 percent annual rateincrease in the first three quarters oflast year. At the same time, receiptsdeclined 14 percent in the first quarterand 10 percent in the fourth, followingaverage increases of about 18 percentearlier in 1974.
About half of the first quarter increasein expenditures was due to the impactof "automatic stabilizers" and newantirecession programs, which werereflected mainly in transfer paymentsand grants-in-aid to State and localgovernments.
The increase in transfers accountedfor nearly 60 percent of the advance intotal expenditures, and resulted largelyfrom higher expenditures for unemploy-ment benefits, civilian and militaryretirement benefits (which were aug-mented by cost-of-living increases),food stamps, and veterans benefits.Grants also advanced strongly, partic-ularly for public assistance and new
Table 2.—Reconciliation of Changes inCompensation Per Man-Hour and AverageHourly Earnings, Private Nonfarm Econ-omy, Seasonally Adjusted
1974
IV
1975
1. Compensation per man-hour,1 all persons(percent change at annual rate)
2. Less: Contribution of supplements
3. Less: Contribution of employees of privatehouseholds and government enter-prises and self-employed and unpaidfamily workers
4. Equals: Wages and salaries per man-hour,all employees except private house-hold and government enterprises(percent change at annual rate)
5. Less: Contribution of supervisory and non-production workers, non-BLS data,and detailed weighting, total
Commodity-producing industries...Manufacturing
Distributive industriesService industries
6. Equals: Average hourly earnings, produc-tion and nonsupervisory workers,obtained from seasonally adjustedindustry components (percentchange at annual rate)
7. Less: Contribution of seasonal adjustmentsby industry
8. Equals: Average hourly earnings, produc-tion and nonsupervisory workers(percent change at annual rate) _ - _
10.2
.3
9.2
.1
.91.5-. 1-.7
9.1
9.0
2.0
.9
.4
.3
public employment programs. About300,000 persons were employed inpublic service jobs by the end of thequarter. Nondefense purchases increasedin line with recent trends; defensepurchases also increased, but at a paceconsiderably below that of the previoustwo quarters. Subsidies (less the currentsurplus of government enterprises) re-corded an unusually large gain, reflect-ing a bigger deficit for the PostalService and higher rail subsidies. Netinterest paid and foreign transfers wereunchanged.
The first quarter decline in receiptswas largely due to the sluggish economyand a slowdown of inflation. However,tax reductions also contributed to alarge drop in corporate tax liabilities.Provisions of the Tax Reduction Actof 1975, such as an increase in the in-vestment credit, accounted for about$2 billion of the $12 billion decline incorporate taxes. (See the April SURVEYfor a detailed discussion of the act.)
Personal taxes also declined; lowerwages resulted in reduced withholdingsand net final settlements were downslightly. The decline in net settlementswas considerably less than estimatedin the budget; recent Treasury estimatesof fiscal 1975 receipts indicate that netsettlements will be about $7 billionhigher than previously estimated. Socialinsurance contributions increased mod-estly, the net result of increases due totax changes and declines attributableto reduced economic activity. Tax
4.7
changes consisted of an increase in themaximum earnings base for social se-curity from $13,200 to $14,100, effectiveJanuary 1, 1975 ($1.7 billion at annualrate) and increases in various Stateunemployment tax rates ($0.4 billion).Indirect business taxes also increased,but only because the $1 per barrelimport duty imposed on petroleumproducts in February offset decreasesin other indirect taxes.
Substantial increase in second quar-ter deficit
The deficit will increase even morein the second quarter, largely because ofprovisions of the Tax Reduction Actof 1975. Some of the major provisionsof the act are confined to the secondquarter, such as the tax rebate and thespecial $50 payment to social security,railroad retirement, and supplementalsecurity income recipients. These pro-visions alone will increase the deficit$39.3 billion in the second quarter; otherprovisions, such as reduced withholdingrates, will increase the deficit another$2 billion.
Special tables
Reconciliations of the implicit pricedeflator for personal consumption ex-penditures with the Consumer PriceIndex and of compensation per man-hour with average hourly earnings areshown in tables 1 and 2.
Price Developments
1. These data differ from the series published by the BLSbecause man-hours have been adjusted to make them com-parable to those implicit in the compensation series. TheBLS figures for the fourth and first quarters are 9.4 ond 9.2.
PRICE increases have moderated and,in some important areas, prices havedeclined since the onset of sharp pro-duction and employment cutbacks lastfall. The rise in the Consumer PriceIndex slowed from an average 1.1percent per month (seasonally adjusted)in the third quarter to 0.5 percent inthe first, and wholesale prices, whichrose at a 2.6 percent per month rate inthe third quarter, declined 0.5 percentper month in the first (table 3). Theturnaround in wholesale prices was
concentrated in agricultural prices but,because of weak final demands and thedesire to liquidate oversized inventories,price increases of industrial commodi-ties have also slowed. Wholesale pricesrose suddenly in April, reversing a4-month downtrend. However, the in-crease was concentrated in a few highlyvolatile agricultural categories, and theprospects are that overall wholesaleprice increases will be small in themonths ahead.
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May 1975 SUKVEY OF CURRENT BUSINESS
Wholesale prices
Wholesale agricultural prices declinedsteeply from December to March androse in April. The sharpest declinessince last fall have been in grains,animal feeds, fats and oils, and sugar.Wholesale grain prices, which had heldat a high level since the summer of 1973,peaked last October and, in the wake ofimproved fall harvests both here andabroad, have since declined 20 percent.The most recent declines in grain pricesalso reflect the favorable outlook forthe winter wheat crop. Winter wheatwill be harvested beginning in late Mayand the harvest is currently expected tototal 1.6 billion bushels, or 16 percenthigher than in 1974. A turnaround insugar prices was another importantfactor in the recent decline in agricul-tural prices. Sugar prices, which roserapidly until last fall, declined for thefifth consecutive month in April. Re-fined sugar fell from an average of $72per hundred pounds last November to$33 in April reflecting revised estimatesof crop prospects and world demand.
Livestock prices were stable in thefourth quarter, declined 3.5 percentper month in the first, and rose 16percent in April. The decline in cattleprices during the winter months re-flected "forced marketings" due to thehigh cost of animal feeds when pas-tures were generally insufficient tosustain large herds. When pasturesagain became available in April, farmerscould hold their herds more cheaplyand spot prices of steers returned to thepeak reached last summer. Prices ofmeats, poultry, and fish rose 9 percentin April, following a decline of 0.8percent per month in the first quarter,and no change in the fourth. Fruitand vegetable prices jumped in April,after declining in the fourth and firstquarters.
Prices of industrial commodities, withthe exception of crude material prices,are far more stable than food prices.As a result of the sharp worldwidedecline in industrial activity and theconsequent drop of orders, industrialprice rises have decelerated virtually
without interruption since last Septem-ber. The deceleration has been rapid innearly all industrial groups. One ex-ception was the transportation equip-ment group, where prices increasedsharply in the fourth quarter beforedecelerating in the first. The fourthquarter rise in prices of transportationequipment, which are not seasonallyadjusted, was due to increases in pricesfor new 1975 model cars.
Within the industrials index, thedeceleration of price rises has beenevident at all major stages of processing,but most pronounced for crude mate-rials. Crude materials prices declinedin the fourth and first quarters but rosein April. A little over half of the Aprilrise was due to a 10 percent increase ingas fuels prices (not seasonally adjusted)as lower cost natural gas delivery con-tracts which expired last February werereplaced by higher cost contracts (gasfuels prices enter the price index with a2-month lag). Prices of hides also rosesteeply. Other crude materials prices,
Table 3.—Average Monthly Percent Change in Prices
[Seasonally adjusted]
All commodities
Agricultural commodities .Farm productsProcessed foods & feeds
Industrial commoditiesTextile products & apparelFuels & related productsChemicals & allied productsPulp, paper & allied productsMetals & metal productsMachinery & equipmentTransportation equipment 2_ ...Allother
Industrial commodities by stage of processing:Crude materials _. .Intermediate materialsProducer finished goodsConsumer finished goods
NondurablesDurables
All items
Food
Commodities less foodNondurablesDurables.
Services 2
RelativeimportanceDec. 1974
1973
III IV
1974
I II III IV
1975
I April
Wholesale Price Index
100.0
29.111.117.9
70.95.89.66.54.8
13.811.06.1
13.4
3.442.68.6
17.511.26.4
1.0
2.54.41.2
.5
. 91.2.4.8.7.2.1.3
2.1.5.2.4.4.3
0.8
-.9-2.0-.1
1.51.33.91.51.42.1.6.8. 7
4.01.5.6
1.11.7
2
1.9
1.0.6
1.2
2.41.27.63.21.92.61.2.5
1.3
5.52.41.12.12.81.0
0.9
-2.8-5.0-1.1
2.51.23.63.92.43.92.11.01.4
.82.92.01.92.21.1
2.6
4.24.04.5
2.1.2
2.64.43.92.82.31.3.7
2.22.52.21.51.61.2
1.1
1.5.3
2.1
.9-.71.02.8.9
-.21.72.4.6
-1.1.9
1.6.9.8
1.4
-0.5
-2.6-3.2-2.2
.3—1.0(0
1.4.3
-.11.0.6.4
-.9.3.9.32
\l
1.5
4.86.73.5
.1-.21.1.1
-.5
!s.3.2
1.1.2.6.2.3.0
Consumer Price Index
100.0
24.8
39.023.315.7
36.2
.8
2.0
.3
.1
.3
.6
.7
.9
.61.2.1
.8
1.1
1.5
1.31.8.5
. 7
.8
.3
1.11.11.1
.9
1.1
1.0
1.3.9
1.5
1.1
.8
1.2
.6
.5
.9
.9
.5
.1
.7
.51.0
.7
n.a.
n.a.
n.a.n.a.n.a.
n.a.
n.a. Not available.1. Less than 0.05 percent.
2. Not seasonally adjusted.Source: Bureau of Labor Statistics.
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SURVEY OF CURRENT BUSINESS May 1975
including those of coal and crude rubber,continued to decline slightly in April.
Price increases of intermediate mate-rials slowed appreciably in the fourthand first quarters and continued to easein April. The easing was largely at-tributable to declines in prices ofnonferrous rnetals due largely to weakdemand from the auto industry, anddeclines in prices of synthetic textiles,reflecting both weak demand in theapparel industry and a trend toward thegreater use of natural fibers. Priceincreases of industrial and agriculturalchemicals were about unchanged inApril; in the fourth and first quarterschemicals price increases, while slowing,were large.
Since the third quarter of last year,price increases of finished goods haveslowed, but the deceleration has beenless than in intermediate goods prices.Producer finished goods prices increasedsubstantially, in large part because ofhigher prices for machinery and equip-ment. For consumer finished goods, theslowdown reflected declines in textileand apparel prices and, in the firstquarter, a letup in fuel price increasesand the temporary effect of rebatesand dealer incentive plans in the autoindustry.
Consumer prices
The rise in the Consumer Price Indexdecelerated steadily from September toMarch. The slowdown was mainly con-centrated in nonfood commodities inthe fourth quarter and in food in thefirst. Price increases for services slowedmoderately in both quarters.
Retail food price increases began toslow in December, at the same timewholesale food prices started to de-cline, and averaged only 0.1 percentper month in the first quarter. Prices offood away from home increased about 1percent per month, continuing the samerate of advance they have maintainedfor the past year, but prices of foodpurchased at grocery stores fell slightly.The weakening of store prices in thefirst quarter reflected a 1.5 percent permonth decline in the prices of meats,poultry, and fish, and a small decline indairy products. Cereal and bakeryproducts, which rose at a monthly rate of2.3 percent in the fourth quarter, ad-vanced 1.2 percent per month in thefirst.
The rise in prices of nonfood com-modities slowed abruptly in the fourthquarter and stabilized at about that
rate in the first. Among durable com-modities, price rises slowed in the fourthand first quarters by about half forhousehold durables and by more thanhalf for new cars. Used car prices—notseasonally adjusted—showed littlechange following an average monthlyrise of 5.5 percent in the preceding twoquarters. The slowdown in nondurablesprice increases was dominated by a fallin the monthly rate of advance forapparel from 1.0 percent in the thirdquarter to no net increase in the fourthand first quarters.
The mild deceleration in service priceincreases was evident in all majorservice categories except rent, for whichthe increase accelerated in the fourthquarter and stabilized in the first.Price increases of services, however,were higher than increases of com-modities. The most rapid service priceincreases were for medical care andhousehold gas and electricity. Medicalcare prices rose an average of 1.0percent per month in the fourth andfirst quarters, down from 1.3 percentin the preceding half year. Householdgas and electricity price increasesabated to 1.3 percent from 1.4 percentover the same period.
Postponement of July Revision of GNPA benchmark revision of the national income
and product accounts that will incorporate the1963 and 1967 economic censuses and informationfrom other sources is in preparation. All entriesin the accounts will be revised back to 1958 andsome will be revised for earlier years. The currentschedule calls for completing the benchmark revisionin October of this year.
The revision of 1972 to 1975 that would cus-tomarily be published this July will be postponedand combined with the benchmark revision.
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May 1975 SUEVEY OF CURRENT BUSINESS
NATIONAL INCOME AND PRODUCT TABLES
1973 1974
1973
IV
1974
I II III IV
1975
I
Seasonally adjusted at annual rates
Billions of current dollars
1973 1974
1973
IV
1974
I II III IV
1975
I
Seasonally adjusted at annual rates
Billions of 1958 dollars
Table 1.—'Gross National Product in Current and Constant Dollars (1.1, 1.2)
Gross national product
Personal consumption expenditures
Durable goodsNondurable goods .Services
Gross private domestic investment
Fixed investment.
NonresidentialStructuresProducers' durable equipment
Residential structuresNonfann _Farm
Change in business inventoriesNonfarmFarm
Net exports of goods and services
ExportsImports .. ..
Government purchases of goods and services
FederalNational defenseOther
State and local
1 294 9
805.2
130 3338.0336 9
209.4
194.0
136 847.089.857 256.7
5
15.411 44.0
3 9
100 496 4
276.4
106 674 432.2
169 8
1 397 4
876.7
127.5380.2369.0
209.4
195.2
149.252.097.146.045.2
.7
14.211.92.3
2.1
140 2138 1
309.2
116 978.7
192 3
1 344 0
823.9
124 3352 1347 4
224.5
195 5
141 949 392.653 653 0
5
28 924 04 9
9 3
113 6104 3
286.4
108 475 333 1
177 9
1 358 8
840.6
123 9364.4352 4
210.5
193 6
145 251 393.948 447 8
7
16.913 13 8
11 3
131 2119 9
296.3
111 575 835 7
184 8
1 383 8
869 1
129 5375 8363 8
211 8
198 3
149 452 297 248 848 0
g
13 510 43 1
—1 5
138 5140 0
304.4
114 376 637 7
190 1
1 416 3
901 3
136 1389 0376 2
205.8
197 1
150 951.099.946 245.4
8
8.76.62.1
—3.1
143 6146 7
312.3
117 278 438 8
195 1
1 430 9
895 8
120 7391.7383 5
209 4
191 6
151 253.797.540 439.7
7
17.817 5
.3
1 9
147 5145 7
323.8
124 584 040.6
199 3
1 417 1
913 2
124 9398 8389 5
163 1
182 2
146 952 894.235 334 8
5
—19 2— 17 8
—1 4
9 3
143 4134 1
331.6
126 584 741 8
205 1
839 2
552 1
113 6228 6209 9
138 1
127 3
94 425 469 032 932 6
3
10 88 91 8
4 6
66 662 0
144.4
57 3
87 0
821 2
539 5
103 1223.7212 6
126 7
118.0
94 026.267.824.023.6
4
8.77.41.2
9 0
71 962 9
146.0
56 5
89 5
845 7
546.3
107 2227 4211 7
145.8
125 8
96 026 070.029 829.5
4
20.017 92 1
7 9
68 961.0
145.7
56 4
89 3
830 5
539.7
105 2223.9210 6
133.3
122 7
96 326 769.726 426.0
4
10.68 71.8
11 5
73 361 8
146.0
56 3
89 7
827 1
542.7
106 8223.6212 2
130.3
122 2
96 526 669.925 725 3
4
8 26 41 8
8 2
73 465 1
145.8
56 3
89 5
823 1
547.2
107.8225.8213 7
122.7
117.7
94.125.468.723.623.1
.4
5.03.91.1
7.3
70.963.6
145.9
56 5
89 4
804 0
528.2
92. 8221.4214 1
120.5
109.6
89 226.163.120 420.1
4
10.910.7
.2
9 1
69 960.9
146.3
57 0
89 3
780 2
531 5
95 2222 5213 7
89 3
101 0
83 825 258.617 317.0
2
— 11.7— 10 9
—.8
11 8
67 055 2
147.7
57 4
90 2
Table 2.—Gross National Product by Major Type of Product in Current and Constant Dollars (1.3, 1.5)
Gross national product
Final salesChange in business inventories
Goods output .
Final salesChange in business inventories
Durable goodsFinal salesChange in business inventories
Nondurable goods... .Final salesChange in business inventories
Services
Structures
1,294 9
1 279 615.4
622 7
607 315 4
250 3240 9
9.4
372.4366 5
6 0
534 4
137.8
1, 397. 4
1 383 214.2
670 3
656 114.2
256 9249.2
7.7
413.4406.9
6.5
590 3
136.8
1 344 0
1 315 128 9
653 6
624 728 9
255 4240 6
14 8
398 2384 1
14 1
553 2
137.2
1 358 8
1 341 916 9
651 9
635 016 9
251 0242 3
8.7
401 0392 8
8*2
569 7
137.1
1 383 8
1 370 313 5
664 9
651 313 5
246, 6248 5—1 8
418 2402 9
15 4
579 2
139 7
1 416 3
1 407 68 7
681 7
673 08 7
265 5259 8
5.7
416 2413 2
3 0
597 8
136.7
1 430.9
1 413 117.8
682 6
664 817.8
264 5246. 218.3
418.1418 6
—.5
614 5
133.9
1 417 1
1 436 3—19 2
667 0
686 1—19 2
239 5252 9
—13 4
427 5433 2—5 7
621 4
128 8
839 2
828 410.8
459 1
448 310 8
206 0198 5
7.5
253 1249 9
3 3
304 5
75.5
821.2
812.58.7
442 8
434 18.7
195 9191.0
4.9
246.9243.1
3.8
310.9
67.5
845.7
825.720.0
465.1
445 120.0
206 3194.911.5
258.7250 2
8.5
307.8
72.8
830.5
819.910.6
449 1
438 510.6
200 2194.3
5.8
248.9244 2
4.7
310.7
70.7
827.1
818.98.2
448.9
440 88.2
195.4196.6-1.2
253.6244.2
9.4
308.3
69.8
823.1
818.15.0
446.0
441.05.0
200.2196.6
3.6
245.8244.4
1.4
310.7
66.4
804.0
793. 110.9
427.1
416.310.9
188.0176.711.3
239.2239.6-.4
313.7
63.2
780.2
791.9-11.7
408.3
420 1-11.7
167.5176.1-8.6
240.8244.0-3.2
312.4
59.5
Table 3.—Gross National Product by Sector in Current and Constant Dollars (1.7, 1.8)
Gross national product..
Gross domestic product
BusinessNonfarm _Farm
Households and institutions.
General government..FederalState and local
Rest of the world
Addendum: Gross private product.
1,294.9
1,286.5
1, 096. 81,040. 3
56.5
41.3
148.552.895.7
8.4
1,146.5
1,397.4
1,385.6
1,177. 81,124.1
53.8
47.0
160.855.7
105.1
11.9
1,236.6
1,344.0
1,335.2
1,138.81,074.5
64.4
43.0
153.454.399.1
1,190.7
1,358.8
1,344.0
1,143.11,082.6
60.5
44.6
156.354.8
101.5
14.7
1,202.5
1,383.8
1,374.1
1,168. 81,117.8
51.1
46.5
158.855.0
103.9
9.7
1,225.0
1,416.
1,405.2
1,195. 71,144.4
51.3
48.0
161.655.3
106.3
11.1
1,254.7
31,, 430.9
1,418.9
1, 203. 61,151.5
52.1
48.8
166.557.9
108.7
12.0
1,264.4
1,417.1
1,409.4
1,189. 21,142. 9
46.3
50.0
170.258.1
112.2
7.7
1,246.9
839.2
833.9
753.1725.827.4
18.5
62.321.341.0
5.2
776.9
821.2
816.9
733.8706.327.5
18.9
64.121.143.0
4.3
757.1
845.7
840.7
759.2731.028.2
18.7
62.921.141.7
5.0
782.8
830.5
823.5
740.9713.927.0
19.1
63.521.142.3
7.0
767.0
827.1
824.1
741.4712.728.7
63.921.142.8
3.0
763.2
823.1
819.8
736.6708.028.6
18.9
64.221.043.2
3.3
758.8
804.0
800.0
716.5690.825.7
18.8
64.821.043.7
4.0
739.2
780.2
777.7
693.5666.027.5
18.9
65.221.044.3
2.5
714.9
HISTORICAL STATISTICS
THE national income and product data for 1929-63 are in The National Income and Product Accounts of the United States, 1929-1965,Statistical Tables (available at $1 from Commerce Department District Office or the Superintendent of Documents; see addresses inside frontcover). Each July SURVEY contains preliminary data for the latest 2 years and fully revised data for the preceding 2. The July 1974 issue hasdata for 1970-73. Prior July issues have fully revised data as follows: 1969-70, July 1973; 1968-69, July 1972; 1967-68, July 1971; 1966-67,July 1970; 1965-66, July 1969; 1964-65, July 1968.
-
6 SUEVEY OF CURRENT BUSINESS May 1975
1973 1974
1973
IV
1974
I II III IV
1975
I*
Seasonally adjusted at annual rates
Billions of dollars
1973 1974
1973
IV
1974
I II III IV
1975
I*
Seasonally adjusted at annual rates
Billions of dollars
Table 4.—Relation of Gross National Product, National Income, Table 7.—National Income by Type of Income (1.10)
Gross national productLess: Capital consumption
allowances
Equals: Net national product..
Less: Indirect business tax andnontax liabilityBusiness transfer payments. .Statistical discrepancy
Plus: Subsidies less currentsurplus of government enter-prises
Equals: National income.
Less: Corporate profits & IV A.Contributions for social in-suranceWage accruals less disburse-ments..
Plus: Government transferpayments to personsInterest paid by government(net) and by consumers .
Business transfer payments..
Equals: Personal income
1,294.9
110.8
1,184.1
119.24.9
-5.0
.6
1,065.6
105.1
91.2
-.1
113.0
38.329.64.9
1,055.0
1,397.4
119.5
1,278.0
126.95.2.4
-2.9
1,142.5
105.6
101.5
—.5
134.6
42.332.75.2
1,150.5
1,344.0
113.9
1,230.1
121.35.0
-2.6
-. 1
1,106.3
106.4
93.9
.0
117.1
40.430.75.0
1,099.3
1,358.8
115.8
1,243.0
122.65.1
-6.3
-2.7
1,118.8
107.7
99.1
.0
123.1
40.831.65.1
1,112.5
1,383.8
118.6
1,265.2
125.95.2.3
-3.7
1,130.2
105.6
100.8
-.6
130.6
41.932.55.2
1,134.6
1,416.3
120.7
1,295.6
129.55.33.0
-2.4
1,155.5
105.8
103.0
-1.5
138.7
42.733.25.3
1,168.2
1,430.9
122.9
1,308.1
129.85.34.8
-2.7
1,165.4
103.4
103.2
.0
145.8
43.633.35.3
1,186.9
1, 4i7. 1 Compensation of employees
125. 2 Wages and salaries
1,292.0 PrivateMilitary .Government civilianIo2. 2
5'1 Supplements to wages andsalaries
Employer contributions forsocial insurance
1, 149. 8 Proprietors' income
4 Business and professional_ Farm104.6 *
-
May 1975 SUEVEY OF CUREENT BUSINESS
1973 1974
1973
IV
1974
I II III IV
1975
I*
Seasonally adjusted at annual rates
BiUions of dollars
Table 10.—-Gross Corporate Product 1 (1.14)
Gross corporate product
Capital consumption allowancesIndirect business taxes plus transfer
payments less subsidies
Income originating in corporate busi-ness
Compensation of employeesWages and salariesSupplements.
Net interest
Corporate profits and inventoryvaluation adjustment
Profits before tax...Profits tax liabilityProfits after tax
DividendsUndistributed profits..
Inventory valuation adjustment..
Cash flow, gross of dividendsCash flow, net of dividends
Gross product originating infinancial institutions
Gross product originating innon financial corporations
Capital consumption allowancesIndirect business taxes plus transfer
payments less subsidies..
Income originating in nonfinancialcorporations
Compensation of employees.Wages and salariesSupplements
Net interest
Corporate profits and inventoryvaluation adjustment...
Profits before tax. .Profits tax liability..Profits after tax
Dividends...Undistributed profits ..
Inventory valuation adjustment-
Cash flow, gross of dividends.. .Cash flow, net of dividends
Grow product originating innon financial corporations
Cm-rent dollar cost per unit of1958 dollar gross productoriginating in nonfinancialcorporations9
Capital consumption allowancesIndirect business taxes plus transfer
payments less subsidies-Compensation of employeesNet interest
Corporate profits and inventory valu-ation adjustment
Profits tax liabilityProfits after tax plus inven-
tory valuation adjustment—
720. *
71.2
66. £
583.1
482. S416.665.9
2.8
97.8115 449.865.625.939.6
-17.6
136.8110.8
36.5
684.3
68.1
63.4
552.8
454.1392.661.5
20.5
78.295.840.755.023.731.3
-17.6
123.199.4
770.1
76.7
70. £
623. C
524.1451. C73.1
3.2
95.8130.855.775.133 441.8
-35.1
151.8118.4
39.0
731.1
73.2
67.1
590.8
492.9424.768.2
22.9
75.0110.145.664.530.733.9
-35.1
137.7107.0
742. fi
73.1
67. 6
601.9
500.6432 468 1
3.0
98.3114.749.565.227.937.3
-16.3
138.2110.3
37.6
704.9
69.8
64.4
570.8
471.2407.663.7
21.6
77.994.339.954.425.528.9
-16.3
124.298.7
747. £
74.1
68.2
605.1
507. t437.270.3
3.1
94. £122.252.270.029.940.1
-27.7
144.1114.2
38.3
709.3
70.7
65.1
573.4
477.6411.965.7
22.1
73.8101.542.359.227.331.8
-27.7
129.9102.6
766.6
75.7
69.8
621 1
520.2448.072.2
3.2
97.7131.055.975.135.239.9
-33.4
150.9115.6
38.7
727.9
72.3
66.5
589.1
489.5422.067.4
22.6
77.0110.445.864.532.532.0
-33.4
136.8104.3
782.7
77. e
71. $
633.3
533 1458.874.3
3.2
97 1148.262.785.536.149.4
-51.2
163.0126.9
39.2
743.5
74.0
68.5
601.0
501.5432.269.3
23.1
76.4127.552.575.133.241.9
-51.2
149.1115.9
783.5
79.3
71.8
632.4
535.4460.075.4
3.3
93.8121.852.069.932.337.6
-28.1
149.2116.9
39.7
743.9
75.7
68.4
599.8
503.2432.870.3
23.7
72.9101.041.659.429.729.7
-28.1
135.0105.3
774.0
81.2
734
619.4
527.3451.076.3
3.3
88.895.838.657.231.925.3
—7.0
138.3106.5
40.0
733.9
77.5
69.9
586.5
494.1423.270.9
24.3
68.275.128.546.629.217.5
—7.0
124.295.0
Billions of 1958 dollars
516.4 503.7 520.6 509.7 607.9 505.2 491.8 473.2
Dollars
1.325
.132
.123
.879
.040
.151
.079
.073
1.452
.145
.133
.979
.045
.149
.090
.058
1.354
.134
.124
.905
.041
.150
.077
.073
1.391
.139
.128
.937
.043
.145
.083
.062
1.433
.142
.131
.964
.045
.152
.090
.061
1.472
.146
.136
.993
.046
.151
.104
.047
*
1.512
.154
.1391.023.048
.148
.085
.064
1.551
.164
.1481.044.051
.144
.060
.084
1' ™J?ludes gross Product originating in the rest of the world.point shiftedlwo *? th6 deflator for gross Product of nonfinancial corporations, with the decimal
3- Personal saving as a percentage of disposable personal income.4. On February 18, 1974, the U.S. Government granted to India $2,015 million (quarterly
rate) in rupees under provisions of the Agricultural Trade Development and AdjustmentAct. Tentatively, this transaction is being treated as capital grants paid to foreigners in thenational Income and product accounts but as current unilateral transfers in the balanceor payments accounts. Accordingly, this transaction is excluded from Federal Governmenttransfers to foreigners and related totals shown in tables 13, 14, and 16, and is included in
' (annual rate) in capital grants received by the U.S.
1973 1974
1973
IV
1974
I II III IV
1975
I
Seasonally adjusted at annual rates
BiUions of dollars
Table 11.—Personal Income and its Disposition (2.1)
Personal income
Wage and salary disburse-ments.
Commodity-producing in-dustries
ManufacturingDistributive industriesService industriesGovernment
Other labor income
Proprietors' incomeBusiness and professional .Farm
Rental income of personsDividendsPersonal interest income
Transfer payments _ . . . .Old-age survivors, disabil-
ity, and health insur-ance benefits
Government unemploy-ment insurance benefits5.
Veterans benefitsOther
Less: Personal contribu-tions for social insur-ance
Less: Personal tax and nontaxpayments
Equals: Disposable personalincome
Less: Personal outlaysPersonal consumption ex-
pendituresInterest paid by consumers..Personal transfer payments
to foreigners
Equals : Personal saving
Addenda:Disposable personal income:
Total, billions of 1958 dollars.Per capita, current dollars.. .Per capita, 1958 dollars
Personal saving rate,5 percent .
1,055.0
691.7
251.9196.6165.1128.2146.6
46.0
96.157.638.5
26.129.690.6
117.8
60.4
4.213.939.3
42.8
151.3
903.7
829.4
805.222.9
1.3
74.4
619.64,2952,945
8.2
1,150.5
751.2
270.9211.3178.9142.6158.8
51.4
93.061.231.8
26.532.7
103.8
139.8
69.8
7.116.146.9
47.9
170.8
979.7
902.7
876.725.0
1.0
77.0
602.84,6232,845
7.9
1,099.3
717.0
262.6204.6170.4132.8151.3
47.6
103.258.444.9
26.430.795.9
122.1
62.3
4.414.540.9
43.8
159.9
939.4
850.1
823.924.0
2.2
89.3
622.94,4522,952
9.5
1,112.5
727.6
264.0204.8172.9136.9153.8
48.9
98.459.339.1
26.431.698.2
128.2
63.6
5.415.044.1
46.8
161.9
950.6
866.2
840.624.4
1.2
84.4
610.34,4972,887
8.9
1,134.6
745.2
270.0210.1177.4140.9156.9
50.5
89.960.729.1
26.332.5
102.0
135.8
68.7
6.315.245.7
47.6
168.2
966.5
894.9
869.124.8
1.0
71.5
603.54,5652,850
7.4
1,168.2
763.0
276.0215.8181.6144.9160.5
52.3
92.162.329.8
26.633.2
105.5
144.0
72.5
7.316.647.7
48.5
175.1
993.1
927.6
901.325.3
.9
65.5
602.94, 6812,842
6.6
1, 186. 9
769.2
273.7214.4183.9147.5164.1
54.0
91.662.529.1
26.833.3
109.5
151.1
74.5
9.417.449.9
48.6
178.1
1,008.8
922.3
895.825.5
.9
86.5
594.84,7452,798
8.6
1,193.4
765.1
262.5204.1183.7151.2167.7
55.3
84.962.722.2
27.033.8
112.6
164.1
76.2
15.918.053.9
49.3
178.0
1,015.5
939.5
913.225.4
.9
75.9
591.04,7682,775
7.5
Table 12.—Personal Consumption Expenditures by Major Type (2.3)
Personal consumptionexpenditures.
Durable goodsAutomobiles and parts
Mobile homesFurniture and household
equipmentOther
Nondurable goodsFood and beveragesClothing and shoesGasoline and oilOther -.
ServicesHousingHousehold operationTransportationOther
805.2130.357.54.4
55.017.8
338.0165.170.228.374.4
336.9116.447.323.4
149.9
876.7127.549.73.5
58.819.1
380.2187.774.135.982.4
369.0126.452.926.1
163.6
823.9124.351.24.0
55.417.7
352.1174.570.929.877.0
347.4119.748.724.1
155.0
840.6123.948.04.0
57.518.3
364.4180.172.831.580.0
352.4122.249.225.0
156.0
869.1129.550.64.1
59.519.4
375.8183.574.436.881.1
363.8124.951.725.6
161.6
901.3136.156.23.6
60.419.4
389.0191.375.737.984.2
376.2127.754.626.5
167.5
895.8120.743.72.3
57.819.2
391.7196.073.737.584.5
383.5130.956.027.1
169.4
913.2124.946.82.3
57.920.2
398.8201.476.237.883.5
389.5134.157.028.1
170.3
Table 13.—'Foreign Transactions in the National Income andProduct Accounts (4.1)
a e n5. Title has been changed to include a new temporary Federal program of unemployed
who are not insured under existing programs.* See footnote on page 6.
Receipts from foreignersExports of goods and services-Capital grants received by the
United States (net) 4
Payments to foreignersImports of goods and services-Transfers to foreigners
PersonalGovernment
Net foreign investment
100.4100.4
.0100.496.43.91.32.6.1
138.2140.2
-2.0138.2138.1
3.61.02.6
-3.5
113.6113.6
.0113.6104.3
4.72.22.54.7
123.2131.2
-8.1123.2119.9
3.71.22.5-.4
138.5138.5
.0138.5140.0
3.71.02.7
-5.2
143.6143.6
.0143.6146.7
3.3.9
2.4-6.5
147.5147.5
.0147.5145.7
3.6.9
2.7-1.8
143.4143.4
.0143.4134.1
3.6.9
2.75.7
-
8 SURVEY OF CURRENT BUSINESS May 1975
1973 1974
1973
IV
1974
I II III IV
1975
I*
Seasonally adjusted at annual rates
Billions of dollars
1973 1974
1973
IV
1974
I II III rv
1975
I
Seasonally adjusted
Index numbers, 1958=100
Table 14.—Federal Government Receipts and Expenditures(3.1, 3.2)
Table 17.—Implicit Price Deflators for Gross National Product (8.1
Gross national product - .
Personal consumption expendituresDurable goodsNondurable goods .Services. . .
Gross private domestic investment-Fixed investment
Nonresidential.Structures...Producers' durable equipment...
Residential structuresNonfarm .Farm
Change in business inventories
Net exports of goods and servicesExports. _Imports
Government purchases of goods andservices..
FederalState and local
154.31
145.9114.7147.9160.5
152.4144.9185.4130.0174.0174.0168.0
150.6155.6
191.5185.9195.1
170.18
162.5123.7170.0173.5
165.3158.7198.7143.2191.4191.6183.5
195.0219.7
211.8206.8215.0
158.93
150.8116.0154.8164.1
155.4147.9189.7132.3179.7179.8171.8
164.8170.9
196.5192.1199.3
163.61
155.8117.8162.7167.3
157.8150.7192.2134.8183.8183.9175.4
179.0194.0
202.9198. 0206.0
167. 31
160.2121.3168.0171.4
162.3154.9196.2139.2190.0190.2181.5
188.7214.9
208.8203.0212.4
172.07
164.7126.3172.3176.1
167.5160.4200.6145.5195.9196.1187.5
202.5230.8
214.1207.4218.3
177. 97
169.6130.1176. 9179.2
174.9169.6206.0154.5197.9198.1189.4
210.9239.3
221.4218.4223.2
181. 65
171.8131.2179.2182.2
180.4175.4209.7160.7204.3204.4195.4
214.2242.9
224.6220.3227.3
eminent enterprises .SubsidiesCurrent surplus
Less: Wage accruals less disburse-ments..
Surplus or deficit (— ), nationalincome and product accounts
5.34.2
-1.1
.0
-5.6
2 12.0-.1
-.5
-8.1
4.83.7
-1.1
.0
-2.3
2.21.8
-.4
.0
-2.8
1 31.5.2
-.6
-3.0
2 72.5-. 1
-1.5
-1.9
2.32.0-.3
.0
-24.5
Table 15.— State and Local Government Receipts and Expendil(3.3, 3.4)
State and local government receipts
Personal tax and nontax receiptsCorporate profits tax accrualsIndirect business tax and nontax
Contributions for social insurance. _.Federal grants-in-aid
State and local government expendi-tures
Purchases of goods and services
Net interest paidSubsidies less current suiplus of gov-
ernment enterprisesQi-iKolHioc
Current surplus
Less: Wage accruals less disburse-ments
Surplus or deficit (— ), nationalincome and product account*
Addenda:Surplus, social insurance funds...
Surplus or deficit (-) all otheroca unds
193.5
37.26.1
98.011.740.5
184.4
169.820.1-.8
-4.7.1
4.8
.0
9.2
9.1
.1
207.7
39.56.7
104.912.843.8
205.9
192.320.2
-1.6
-5.0.1
5.1
.0
1.8
9.7
-7.9
197.3
38.26.0
100.012.141.0
192.7
177.920.8
-1.2
-4.9.1
4.9
.0
4.6
9.4
-4.7
200.6
37.86.3
101.212.442.9
197.4
184.819.1
-1.5
-4.9.1
5.0
.0
3.2
9.6
-6.4
205.3
38.86.7
104.012.743.2
203.3
190.119.8
-1.6
-5.0.1
5.1
.0
2.0
9.7
—7.7
210.9
40.37.3
107.013.043.4
208.8
195.120.4
-1.6
-5.0.1
5.1
.0
2.1
9.8
-7.7
213.9
41.26.2
107.613.345.5
214.0
199.321.3
-1.5
-5.0.1
5.2
.0
-.1
9.8
-9.9
3 5 Federal2 4 State and local
-1.0
185.9195.1
206.8215.0
192.1199.3
198. 0206.0
203.0212.4
207.4218.3
218.4223.2
220.3227.3
0 Table 18. — Implicit Price Deflators for Gross National Product byMajor Type of Product (8.2)
-54. 7
turesFinal sales
Goods output219.8 Durable goods
Nondurable goods .41. 84. 8 Services
Structures109. 2
J*!' Z Addendum: Gross auto product
154.31
154.5
135.6121.5147.1
175.5182.4
112.9
170. 18
170.2
151.4131.1167.5
189.9202.6
121.5
158. 93
159.3
140.6123.8153.9
179.7188.4
113.0
163.61
163.7
145.2125.4161.1
183.4193.9
114.7
167. 31
167.3
148.1126.2165.0
187.9200.0
118.7
172. 07
172.1
152.9132.6169.3
192.4206.0
124.0
177. 97
178.1
159.8140.7174.8
195.9211.8
127.2
181. 65
181.4
163.3143.0177.5
198.9216.6
127.6
221 5 Table 19. — Implicit Price Deflators for Gross National Product bySector (8.4)
i 4Gross national product.. .... .
' 1 Gross domestic product5 2 Business
Nonfarmn Farm ._.
Households and institutions
General governmentFederal
q q State and local
Table 16.— Sources and Uses of Gross Saving (5.1) Addendum: pross private product.....
Gross private saving
Personal savingUndistributed corporate profitsCorporate inventory valuation ad~-
justment..Corporate capital consumption
allowancesNoncorporate capital consumption
allowancesWage accruals less disbursements....
Government surplus or deficit (-),national income and productaccounts .
FederalState and local
Capital grants received by the UnitedStates (net)*.
Gross investment
Gross private domestic investmentNet foreign investment
Statistical discrepancy.
*See footnote on page 6.
210.9
74.443.3
-17.6
71.2
39.6.0
3.5
-5.69 0
.0
209.4
209.4.1
-5.0
213.8
77.052.4
-35.1
76.7
42.8.0
-6.3
-8.1
-2.0
205.9
209.4—3. 5
.4
229.4
89.342.5
-16.3
73.1
40.9.0
2.3
-2.3
.0
229.1
224.54.7
-2.6
224.1
84.451.6
-27.7
74.1
41.7.0
.4
-2.83. 2
-8.1
210.1
210.5-.4
-6.3
207.3
71.550.5
-33.4
75.7
42.8.0
-1.0
-3.02.0
.0
206.6
211.8-5.2
.3
196. 2
65.561.1
-51.2
77.6
43.2.0
.2
-1.92.1
.0
199.3
205. 8-6.5
3.0
227.5
86.546.2
-28.1
79.3
43.6.0
-24.6
-24.5-.1
.0
207.7
209.4-1.8
4.8
154. 31
154. 27
145.6143.3206.1
222.7
238.5248.3233.4
147.56
170. 18
169. 62
160.5159.1195.4
248.3
250.9264.5244.2
163.34
158.93
158. 81
150.0147.0228.5
244.0257.3237.3
152. 10
163.61
163.20
154.3151.6224.1
246.2259.1239.8
156. 77
167.31
166.75
157.7156.8177.8
248.5260.7242.5
160.51
172. 07
171.41
162.3161.6179.1
251.5263.0245.9
165.35
177. 97
177. 36
168.0166.7203.1
257.1275.0248.5
171.04
181. 65
181. 23
171.5171.6168.3
260.9277.1253.3
174. 41
222* * Table 20.— Change from Preceding Period for75.9 Selected Aggregates (7.7)
-7.0
81.2Gross national product :
44 0 Current dollars• 0 Constant dollars
Implicit price deflator.Chain price indexFixed-weighted price index
— 56. 4Gross domestic product:
— 5 4 7 Current dollars—1-7 Constant dollars. _
Implicit price deflatorChain price index
168.7 Gross private product:Current dollars
163. 1 Constant dollars ...5 7 Imolicit Drice deflator
Chain price index3.0 Fixed-weighted price index
Percent
11.85.95.66.06.3
11.75.95.55.96.2
12.26.25.75.96.3
7.9-2.110.310.010.7
7.7-2.010.09.7
10.4
7.9-2.610.710.611.4
Percent at annual rate
11.22.38.68.59.3
11.12.48.48.39.0
11.22.38.78.69.1
4.5-7.012.311.612.7
2.7-7.911.510.911.9
4.0-7.812.912.614.1
7.6-1.6
9.49.8
11.1
9.3.3
9.09.2
10.6
7.7-2.0
9.910.612.3
9.7-1.911.912.712.7
9.4-2.111.712.512.5
10.1-2.312.613.813.8
4.2-9.014.411.712.5
4.0-9.314.611.812.5
3.1-9.914.512.012.6
-3.8-11.3
8.57.87.4
-2.6-10.7
9.07.87.5
-5.4-12.5
8.18.07.7
-
By IRVING STERN
Industry Effects of Government Expenditures:An Input-Output Analysis
THIS article reports on an importantextension of input-output (I-O) anal-ysis: the measurement of the industr}^effects of government transfer pay-ments and grants-in-aid.1 This articlealso provides a comparison of the in-dustry effects of these payments withthe industry effects of governmentpurchases. Prior I-O studies only tracedthe effects of government purchases.
In recent years government transfersto persons have increased much morerapidly than government purchases.From 1963 (the base year of this study)to 1974, these transfers increased 308percent, from $33.0 billion to $134.6billion, while purchases increased 152percent, from $122.5 billion to $309.2billion. In the same period, grants-in-aidincreased even faster—381 percent,from $9.1 billion to $43.8 billion. Be-cause of this rapid rise, there is in-creasing need for facts and techniquesthat will help evaluate the effects oftransfers and grants on the economy.The information presented here canbe used for such evaluations and also
NOTE.—Lucy J. Wayne assisted in preparingthe estimates. John C. Hartley and HowardL. Schreier were responsible for most of thecomputer programing.
1. Government transfer payments consist of payments topersons and to foreigners. The former consist of income re-ceived by persons, generally in monetary form, for which noservices are rendered currently and of payments to nonprofitinstitutions for services other than those performed underresearch and development contracts. They include paymentsunder social security (including medicare), unemploymentinsurance, railroad retirement, government retirement,veterans benefits (including veterans life insurance proceeds),direct relief, food stamp and black lung programs, and afew other items. Transfer payments to foreigners consist ofnonmilitary grants, pensions, and other transfers, in cash andin kind, to foreign governments, other foreign entities, andpersons residing abroad, as measured in the balance ofpayments.
Grants-in-aid are defined as Federal payments to State andlocal governments and include such items as grants for publicassistance, aid to transportation, urban renewal funds, aidto education, and research contracts with State universities;excluded are outlays in kind, such as donations of farmcommodities.
to measure industry effects of new orexpanded transfer and grant programs.
This article traces the effects onindustry outputs of Federal transfers,Federal grants-in-aid to State and localgovernments, State and local transfers,and government purchases. Grants-in-aid were separated into those used fortransfers and those used for purchases.
Transfers and grants-in-aid undereach government program were groupedby categories of recipients. Consequentexpenditures by recipients were trans-lated into estimates of expenditures ofeach component of GNP and, withineach component, the expenditures wereassigned to the industries that pro-duced the goods and services. Theseestimates were the direct effects oftransfers and grants on the output ofeach industry. Next, I-O relationshipswere used to calculate the indirecteffects, by measuring the industrialrepercussions on industries supplyinggoods and services used by the directlyaffected industries. The combinationof direct and indirect effects representsthe total effects on industry outputresulting from GNP purchases.2 Thetotal requirements table of BEA's I-Ostudy for 1963 was used to calculatethese direct and indirect effects.3
The government providing the initialfunds for transfer payments or for
2. The meaning of direct and indirect output effects canbe explained by means of an example. The governmentpurchases processed foods. These purchases constitute thedirect effect on the output of the food and kindred productsindustry. The production of food creates demand for theagricultural commodities needed to manufacture theprocessed foods. In turn, the agricultural industries requirefertilizers and petroleum products; the fertilizer andpetroleum product industries require chemicals, naturalgas, and crude oils; and so on. These are the indirect effects.
3. T-O tables for 1967 were not available when this studywas begun. See "The Input-Output Structure of the U.S.Economy: 1963," in the November 1969 SURVEY. Also see"The Input-Output Structure of the U.S. Economy: 1967,"in the February 1974 SURVEY.
grants-in-aid was identified as thesource responsible for the GNP pur-chase and the resultant direct andindirect industry effects. Thus, Federalgrants-in-aid that became State andlocal transfers to persons were assignedto Federal transfer programs and thosethat became State and local purchaseswere assigned to Federal purchases.Only State and local transfers and pur-chases that were financed from ownfunds were assigned to State and localgovernments.
Organization of the study
Part I of this study presents, for 1963and 1972, estimates in 1963 prices ofthe direct and indirect industry effectsof expenditures resulting from govern-ment transfers to persons and from Fed-eral grants-in-aid. The estimates for1963 were prepared after examination ofa detailed listing of the types of goodsand services that would be purchasedby the recipients of each transfer andgrant program. The estimates for 1972reflect the levels and mix of the pro-grams in that year, but they are moretentative, because they were calculatedby applying 1963 I-O relationships tothe 1972 program detail.
Part II presents estimates, for 1963,of the industry effects of total govern-ment expenditures (excluding interestpayments, subsidies, and the currentsurplus of government enterprises),showing separately the direct andindirect outputs attributable to govern-ment purchases of goods and servicesand to specific categories of transferpayments to persons and to foreignersand of grants-in-aid. Industry effectsare separated into those resulting fromGNP purchases financed by govern-ment and those resulting from all otherGNP.
9
575-974 O - 75 - 2
-
10 SUEVEY OF CURRENT BUSINESS May 1975
and of Grants-in-Aid, 1963 and 1972
Federal transfers to persons and grants-Part I.—Industry Effects of Government Transfer Payments to Persons m-aia and state and local transfers.
The 1972 estimates were converted to1963 dollars so that the 1963 I-Orelationships could be used to analyzethe effect of each program on industryoutputs in 1972.
Because detailed estimates of theindustry composition of 1972 expendi-tures under each program were notavailable for 1972, personal consump-tion expenditure (PCE) patterns for1963 were used. The average expendi-ture pattern for all grants was used forrevenue-sharing grants, since the lattercould not be identified by function.
To use I-O analysis, a bill of goodsmust be estimated for each program.
GOVERNMENT transfers to personsand grants-in-aid were higher in rela-tion to GNP in 1972 than in 1963because many new programs wereintroduced and a number of existingprograms were expanded substantiallyin this period. Federal transfers (includ-ing State and local transfers financedby Federal grants, other than revenuesharing) increased from $29.1 billion in1963 to $64.9 billion in 1972, in 1963prices (table I).4 They amounted to4.9 percent of GNP in 1963 and 8.2percent in 1972. State and local govern-ment transfers financed from own funds,excluding those financed from revenue-sharing grants, rose from $3.9 billion to$8.6 billion, or from 0.7 to 1.1 percentof GNP.
Federal grants for State and localtransfers increased 136.9 percent,mainly because of a large increase(350.3 percent) in grants for transfersto families with dependent children(table 1). Grants for purchases in-creased more than either total transfersor grants for transfers—from $6.4billion in 1963 to $17.6 billion in1972, or 172.5 percent. The largerincrease reflected mostly the expansionof existing programs and, to a lesserextent, new programs. Grants forexisting programs increased 160.0 per-cent over the period. In 1972, 4.6percent of the grants for State and localpurchases were for new programs.
Among the existing programs, socialsecurity and special welfare servicesand education had particularly largeincreases (more than 400 percent).New programs accelerated expendituresfor sanitation, transit, and policesupport.
Methodology
Estimation of industry effects
As indicated earlier, table 1 shows, in1963 prices, the expenditures for 1963and 1972, by program or function, for
4. Current-dollar estimates for 1972 transfers and grants-in-aid were converted to 1963 prices by use of implicit pricedeflators (from the national income and product and the I-Oaccounts) that were most nearly applicable to the finalexpenditure of the funds. For example, transfers that wereused for personal consumption expenditures (PCE) wereconverted by use of the implicit PCE deflator, grants-in-aidthat were used for highway construction were converted byuse of the implicit deflator for highway construction, etc.
The $29.1 billion in 1963 consisted of $27.0 billion paid di-rectly by the Federal Government and $2.1 billion of Federalgrants-in-aid distributed by State and local governments.The. $64.9 billion in 1972 consisted of $59.8 billion paid directlyby the Federal Government and $5.1 billion of grants-in-aiddistributed by State and local governments. The $59.8billion included $5.0 billion in medicare payments, whichbegan in mid-1966.
Revenue-sharing grants, which were started in 1972, couldnot be separated between those used to finance transfers andthose used for purchases and are therefore reported as a sepa-rate category. They amounted to $1.7 billion in 1972.
Table 1.—Government Transfer Payments to Persons and Grants-in-Aid, by GovernmentProviding Funds and by Program or Function, 1963 and 1972
[Millions of 1963 dollars]
Total
Federal Government. _ -
Transfer payments to persons
Financed and distributed by Federal Government
Benefits from social insurance fundsOld-age and survivors insurance _ ...Disability insurance. _. . - .. .. .Hospital and medical insuranceUnemployment insuranceRailroad retirement insurance. .Federal civilian pensions . ... . . .Veterans life insurance
Military retirement ... ... .Veterans pensions and disability payments .Veterans readjustment and unemployment paymentsOther
Financed by Federal Government grants-in-aid, distributed by State and local govern-ments
Old-age assistance . . . . . .Aid to families with dependent children .Aid to the permanent! v and totally disabled and blindOther
Grants-in-aid used to finance State and local government purchases.. . . ..
Social security and special welfare services .. .. ...Transportation .EducationHealth and hospitals ._ ..National defenseHousing and community developmentAgriculture and natural resources . - . - . - - - - - - - . . ... .SanitationTransitPolice and prisonsOther
Revenue-sharing grants-in-aid l
State and local government transfers financed and distributed by State and local govern-ments-
Direct relief . .. ..
Old-age assistanceAid to families with dependent childrenAid to the permanently and totally disabled and blind .General assistance
Benefits from social insurance funds ... ..
Government pensionsCash sickness compensation . . . ...
Other
1963
39 435
35, 550
29 104
26, 961
21 35514 0441,201
2 9221 1181,260
8101 0073,874
143582
2 143
1 13973524624
6,446
1,0022 950
551524373323270
453
3 885
1,487
556496183253
1,979
1,750229
418
1972
92, 767
84, 175
64, 869
59, 790
46, 39628, 0853,3845,0464,3991,6823,185
6152,9084,8491,8893,748
5,079
1,0473,310
67448
17, 564
5,8592,7422,999
850300
1,152619378248185
2,232
1,742
8,592
3,303
4071,978
400518
4,147
3,840307
1,142
Percentchange
135.2
136.8
122.9
121.8
117.3100.0181.8
50.550.4
152.8-24.1188.825.2
1,221.0544.0
137.0
-8.1350.3174.0100.0
172.5
484.7-7.1444.362.2
-19.6256.7129. 3
392.7
121.2
122.1
-26.8298.8118.6104.7
109.6
119.434.1
173.2
1. For this table, all revenue-sharing grants were assumed to finance State and local government purchases. These grantsare also used to finance State and local government transfers, but the amounts are unknown.
-
May 1975 SURVEY OF CURRENT BUSINESS 11
A bill of goods is a breakdown by in-dustry of an expenditure total; it mustbe consistent with the I-O industrydefinitions and the prices for the year,of the I-O tables. The bills of goods foreach program in 1963 and 1972 wereused with the 1963 I-O total require-ments table to calculate total effectson industry outputs.
In this study, the assumption wasmade, for both 1963 and 1972, that alltransfers and grants-in-aid were spentin the year in which received. It was alsoassumed that the spending patterns oftransfer recipients from transfer fundswere the same as the spending patternsof all families within each of thedemographic and income classes inwhich the transfer groups identified inthis study were included.
Estimation of expenditures by trans-fer recipients
Transfer recipient families 5 weregrouped by income class and by selecteddemographic characteristics, such asage of family head, family size, andfamilies with children under 18. Es-timates of their expenditure patternswere based on those of all families inthe same category. Information on theincome classes and demographic char-acteristics of transfer recipients was ob-tained from the U.S. Department ofHealth, Education, and Welfare, theOffice of Economic Opportunity, theVeterans' Administration, the U.S.Civil Service Commission, the U.S.Department of Defense, and the Bureauof the Census. Information on ex-penditures by all families in the variouscategories was obtained from the 1960-61 Consumer Expenditure Survey(CES) 6 of the Bureau of Labor Sta-tistics and the U.S. Department ofAgriculture.
The CES 1960-61 expenditures foreach category of family were classifiedinto 42 products and services consistentwith the detailed classifications shownin table 2.5 "Personal ConsumptionExpenditures by Type of Product,"usually published in the July SURVEY.
The expenditures for each group wereconverted to 1963 prices by means ofdetailed price indexes. These expendi-tures were then multiplied by therelative change from 1960-61 to 1963 inthe number of families in each categoryto derive interim estimates of expendi-tures for 1963.
These interim estimates for eachdemographic or income class categorywere aggregated to derive CES-basedestimates of expenditures by all familiesfor 1963 for each of the 42 product andservice groups. The aggregates for allfamilies were compared with the PCEestimate for each of the 42 groups, andthen the CES-based estimates wereadjusted proportionately so that theall-family aggregate equaled the PCEestimate. These estimates were thenassigned to the relevant I-O industryusing the "bridge" table that relatesPCE in the national income and prod-uct accounts (NIPA) to PCE in theI-O accounts.7
These calculations resulted in finalestimates of 1963 consumption expend-itures by families by demographic andincome class category. These estimateswere then matched with the familiesreceiving the various kinds of trans-fers. For programs with low incomerequirements, recipients were classifiedby income class as well as demographiccharacteristics. For the old-age assist-ance program, for example, the expend-iture pattern used was that for familieswhose head was aged 65 or over, withinspecified income classes. For the pro-gram Aid to Families with DependentChildren (AFDC), the expenditure pat-tern used was that for families withchildren under 18, within specified in-come classes and by size of family.
For other programs, with some excep-tions, the families were grouped onlyby age of family head. The importantexceptions were families receiving un-employment insurance or cash sicknesscompensation. These families weregrouped by income class and familysize. For veterans life insurance pay-ments other than dividends and for a
5. Families include unrelated individuals, who are con-sidered to be single-person families for this article.
6. This is the latest CES available. The results of the 1972-73 CES are to be published in 1976.
7. See table 1, in the January 1971 SURVEY article, "Per-sonal Consumption Expenditures in the 1963 Input-OutputStudy." The table shows the I-O industry composition of the1963 expenditures in each of the 83 functional categories intowhich PCE is classified.
portion of Federal "other" transfers,the expenditure pattern for all con-sumers was used. For hospital andmedical insurance benefits and for por-tions of other veterans benefits, cashsickness compensation, and "other"Federal and State and local transfers,the expenditures were assigned directlyto the industries providing the goodsand services.
For 1972, government transfers topersons in each of the demographic andincome class categories were estimatedfrom data provided by the Federalagencies mentioned earlier. The totalexpenditures (assumed equal to trans-fers) for each category were adjustedto 1963 prices by use of the implicitdeflator for total PCE. Then the pur-chases from each industry by each cate-gory were derived by applying to itstotal expenditures its 1963 industrydistribution.
Estimation of expenditures fromgrants-in-aid
Federal grants-in-aid programs wereseparated into those that financed Stateand local transfers and those thatfinanced State and local purchases. Theprocedure used to estimate purchasesfor the first group was the same asthat used to estimate purchases byrecipients of transfers financed froma government's own funds. For thesecond group, the kinds of goods andservices purchased under each programwere based on detailed data on pur-chases by State and local governmentfunctional categories, disaggregationsof State and local construction ex-penditures into specific constructionactivities, and personal consumptionexpenditure data prepared for the 1963I-O study.
Direct Effects on Industry Out-puts of Transfer Payments toPersons and of Grants-in-Aid
Table 2 shows, for 1963 and 1972,the direct output effects on selectedindustries of each dollar of governmenttransfers to persons and Federal grants.Transfers are shown separately forFederal and for State and local govern-ments. Grants are separated betweenthose used to finance transfers and those
-
12 SURVEY OF CURRENT BUSINESS May 1975
used to finance purchases. The in-dustries shown are those with moderateto large effects in any transfer orgrant-in-aid category (with the twoagricultural industries considered asone).
From 1963 to 1972, the largestchange in industry output attributableto total government transfers (column2 less column 1) occurred in the medical,educational services, and nonprofit or-ganizations industry (I-O 77), whichincreased from 10.9 cents to 17.1cents for each dollar of total transfers.This increase resulted almost entirelyfrom the Federal medicare program,for which payments started in mid-1966.Other changes were minor; most weresmall decreases.
For State and local governmenttransfers financed by grants-in-aid, themost important changes in output (col-umn 8 less column 7) resulted largelyfrom shifts in the types of public assist-ance programs. For example, grants forAFDC increased from 34.3 percent ofthe total of grants used to financeState and local transfers in 1963 to65.2 percent in 1972, whereas those forthe old-age assistance program declinedfrom 53.1 to 20.6 percent. The effectson output were: increases in the foodand kindred products industry (I-O 14)and the apparel industry (I-O 18)
and decreases in the communications,except radio and television broadcastingindustry (I-O 66), the electric, gas,water, and sanitary services industry(I-O 68), the real estate and rentalindustry (I-O 71), and the medical,educational services, and nonprofit or-ganizations industry.
For both years, there were importantdifferences in the effects on industryoutputs resulting from total transfers(columns 1 and 2) and from transfersfinanced from grants-in-aid (columns7 and 8), because most of the lattertransfers require that recipients havelow incomes.
The major transfer programs for lowincome persons are the State and localgovernment public assistance programs.There are some Federal programs withlow income requirements, but they arerelatively small and amounted to onlyabout 6 percent of Federal Governmenttransfers in both 1963 and 1972. Of theState and local transfers in 1963 and1972 (including those financed fromown funds and Federal grants), about60 percent were distributed to lowincome persons. In both years, virtuallyall of these payments were under publicassistance programs, and almost 60percent of public assistance transferswere financed by Federal grants.
Table 2 also shows that expenditures
attributable to Federal Governmentgrants-in-aid that financed State andlocal government purchases (columns11 and 12) had substantially differenteffects on industry outputs from thosethat financed transfers. This is becausethe former are used to finance activitiessuch as the administration of the publicassistance and other programs, theconstruction of highways, the con-struction and operation of schools andhospitals, etc., while the latter are usedprimarily to finance PCE.
For grants used to finance State andlocal purchases, the most importantchanges in industry output from 1963to 1972 resulted from the decrease inFederal grants for transportation(mostly highway construction). Thesedecreased from 45.8 percent of totalgrants for State and local purchases in1963 to 15.6 percent in 1972. As a re-sult, direct purchases by State and localgovernments from the new constructionindustry (I-O 11) decreased from 52.4to 23.0 cents for each dollar of grants-in-aid funds. Other important changesresulted from the increase in grants forsocial security and special welfare serv-ices, from 15.5 to 33.4 percent, and theincrease in grants for public education,from 8.5 to 17.1 percent. The formerled to an increase in purchases from the
Table 2.—Direct Effects on Industry Output of Each Dollar of Government Transfer Payments to Persons and of Grants-in-Aid, forSelected Industries, 1963 and 1972
[In 1963 dollars]
Industry number and title
1 Livestock and livestock products2 Other agricultural products
11 New construction14 Food and kindred products _ . . . .18 Apparel66 Communications, except radio and TV broadcasting68 Electric, gas, water, and sanitary services _69 Wholesale and retail trade71 Real estate and rental _ _ .77 Medical, educational services, and nonprofit organiza-
tions . .84 Government industry
Allother..
Total
Government transfer payments to persons
Total
1963
(1)
0.0050.0084.0038.1462.0296.0175.0390.2020.1552
.1094
.0044
.2795
1. 0000
1972
(2)
0.0047.0078.0006.1374.0284.0154.0354.1890.1382
.1706
.0099
. 2626
1. 0000
Federal Government
Total
1963
(3)
0.0050.0083.0043.1452.0300. 0177.0389.2033.1569
.1028
.0046
.2830
1.0000
1972
(4)
0.0046.0077.0006.1351.0283.0156.0351.1884.1394
.1702
.0109
.2641
1. 0000
Distributed bythe FederalGovernment
1963
(5)
0.0048.0082.0047.1406.0298.0178.0380.2028.1573
.1044
.0049
.2867
1. 0000
1972
(6)
0.0044.0074.0007.1281.0274.0158.0343.1844.1405
.1809
.0118
.2643
1.0000
State and localgovernment
transfer paymentsfinanced bygrants-in-aid
1963
(7)
0.0069.0107.0000.2034.0315.0168.0507.2104.1516
.0819
.0006
.2355
1. 0000
19721
(8)
0.0074.0113.0000.2169.0387.0126.0450.2348.1262
.0444
.0005
.2622
1.0000
State and localgovernment
transfer paymentsfinanced
from own funds
1963
(9)
0. 0053.0085.0000.1536.0272.0160.0401. 1916.1427
.1591
.0030
.2529
1. 0000
19722
(10)
0. 0053.0085.0000.1550.0291.0140.0371.1939.1294
.1736
.0024
.2517
1.0000
State and localgovernment
purchasesfinanced bygrants-in-aid
1963
(11)
0.0003.0016. 5241.0326.0003.0035.0078.0003.0078
. 0755
.2474
.0988
1. 0000
19721
(12)
0.0087.0069.2298.0414.0038.0048.0120.0184.0187
.1958
.3262
.1335
1.0000
1. Excludes revenue-sharing grants.2. Assumes that none of the revenue-sharing grants financed State and local government transfer payments.
-
May 1975 SUEVEY OF CUERENT BUSINESS 13
Table 3.—Direct Effects on Industry Output of Each Dollar of Selected Government Transfer Payments to Persons, for SelectedIndustries, 1972
[In 1963 dollars]
Industry number and title
1 Livestock and livestock products.2 Other agricultural products3 Forestry and fishery products . - .
14 Food and kindred products15 Tobacco manufactures
18 Apparel22 Household furniture
29. 01 Drugs... - .-- .29. 02, . 03 Cleaning and toilet preparations _
34 Footwear and other leatherproducts.
54 Household appliances59 Motor vehicles and equipment. . .66 Communications, except radio
and TV broadcasting .68 Electric, gas, water, and sanitary
services69 Wholesale and retail trade
70. 04 Insurance carriers71 Real estate and rental _ - .
77.01-03 Medical77. 04, .05 Educational services and non-
profit organizations. _ - - - - -
All other _-
Total
Government transfer paymentsto persons
Total
(1)
0.0047.0078.0016.1374.0118
.0284
.0057
.0084
.0087
.0065
.0065
.0291
.0154
.0354
.1890
.0130
.1382
.1200
.0506
.1818
1. 0000
By type
Publicassist-ance
(2)
0.0074.0114.0019.2169.0232
.0373
.0060
.0136
.0115
.0097
.0212
.0126
.0450
.2335
.0104
.1260
.0143
.0297
.1684
1.0000
Allother
(3)
0. 0044.0073.0011.1272.0104
.0272
.0056
.0095
.0080
.0059
.0061
.0301
.0157
.0341
.1833
.0133
.1398
.1336
.0532
.1842
1. 0000
By level >
Fed-eral
(4)
0.0044.0074.0011.1281.0105
.0274
.0057
.0096
.0081
.0059
.0061
.0298
.0158
.0343
.1844
.0134
.1405
.1378
.0431
.1866
1. 0000
Stateandlocal
(5)
0.0061.0096.0015.1780.0176
.0326
.0056
.0030
.0111
.0092
.0080
.0260
.0135
.0401
.2091
.0109
.1282
.0425
.0831
.1643
1.0000
Selected public assistancetransfer payments to persons
Aid tofamilies
withdependentchildren
(6)
0.0080.0121.0020.2341.0280
.0446
.0067
.0152
.0141
.0110
.0238
.0080
.0394
.2574
.0109
.0963
.0004
.0119
.1761
1.0000
Old-ageassistance
(7)
0.0064.0101.0016.1904.0119
.0198
.0040
.0104
.0056
.0064
.0129
.0236
.0615
.1800
.0096
.1977
.0002
.0989
.1490
1. 0000
Aid to theperma-nently
and totallydisabled
and blind
(8)
0.0060.0095.0015.1753.0158
.0258
.0051
.0109
.0070
.0074
.0174
.0192
.0500
.1906
.0090
.1699
.1082
.0159
.1555
1. 0000
Selected Federal Governmenttransfer payments to persons
Social insurance funds
Old-ageand
survivorsinsurance
(9)
0.0050.0085.0012. 1454.0102
.0267
.0053
.0100
.0087
.0056
.0063
.0284
.0196
.0425
.1984
.0140
.1675
.0730
.0333
.1904
1. 0000
Disabilityinsurance
(10)
0. 0048.0078.0011.1351.0140
.0393
.0088
.0050
.0096
.0087
.0078
.0444
.0147
.0298
.2243
.0178
.1455
.0432
.0345
.2038
1. 0000
Federalcivilianpensions
(11)
0.0049.0082.0012.1419.0117
.0311
.0061
.0084
.0088
.0066
.0066
.0338
.0182
.0380
.2074
.0154
.1566
.0631
.0351
.1969
1.0000
Militaryretirement
andveteranspensions
anddisabilitypayments
(12)
0.0048.0079.0012.1389.0128
.0362
.0071
.0067
.0091
.0078
.0069
.0386
.0163
.0337
.2159
.0172
.1485
.0521
.0372
.2011
1.0000
Un-employ-
mentinsurance
(13)
0. 0046.0076.0011.1307.0137
.0369
.0091
.0064
.0096
.0081
.0081
.0449
.0146
.0295
.2187
.0166.1430.0478
.0319
.2171
1.0000
1. This refers to the government distributing the transfers, not the government providing the funds.
medical, educational services, and non-profit organizations industry, from 7.6to 19.6 cents. The latter led to an in-crease in purchases from the govern-ment industry (I-O 84),8 from 24.7 to32.6 cents.
Public assistance and all other trans-fer programs
Table 3 shows, for 1972, the directeffects on industry output of each dollarof government transfer payments topersons for major transfer programs.Similar information is available for1963, but the differences between the2 years were generally not large; hence,this discussion covers only 1972.
The industry composition of expendi-tures by families on public assistance(column 2) differed from that of ex-penditures by families receiving othertransfers (column 3). Families on publicassistance spent relatively more forfood, apparel, footwear, tobacco, whole-
8. In the I-O accounts, the government industry is definedas the compensation of general government employees exclu-sive of that paid to construction workers on governmentpayrolls.
sale and retail trade,9 and utilities.They spent less for rent, motor vehicles,drugs, medical services, and hospitals.Expenditures for the last three itemswere smaller because, under the medic-aid program, governments generallypaid the pharmacists, doctors, and hos-pitals directly. (In the NIPA, thesepayments are included in State andlocal government purchases of goodsand services.)
Selected public assistance programs
The industry distribution of expendi-tures was substantially the same underthe three major public assistance pro-grams (columns 6-8 of table 3). How-ever, a few differences and their sourcesare worth mentioning. Families in theAFDC program spent more for food,apparel, footwear, tobacco, cleaningand toilet preparations, motor vehicles,
9. Because of the larger expenditures for food, apparel, foot-wear, and tobacco, the expenditures for the wholesale andretail trade services required to deliver these items to theconsumer were also larger.
household appli