RELATIONSHIP OF FARM INCOME AND INCOME OF INDUSTRIAL WORKERS 

 By L. F. St Ice, Extenolon Marketing Specialist 



In coming months, as government wartime spendings decline, subsidies are 

 withdrawn and price ceilings on farm products are removed, trends in business activity 

 will bear watching. Fluctuations In cash Incomes from farm marketings and incomes of 

 industrial workers have been similar most of the time since 1910 (see chart). This is 

 because changes in the purchasing power of industrial workers greatly influence the 

 demand for farm products. Demand affects prices, and prices of farm products usually 

 account for most of the changes in farmers' gross Incomes. 



During the war, incomes of Industrial workers would have supported farm 

 prices and gross farm Income at substantially higher levels than actually prevailed. 

 Although consumer purchasing power is expected to maintain the demand for farm prod- 

 ucts at a comparatively high level in 19^6, Incomes of industrial workers will decline 

 to more nearly correspond to farm Incomes. 



Percent 

 500 



260 



220 



180 

 lUo 



100 



60 



. CASH INCOME FROM FARM MARKETINGS, AND INCOME 

 OF INDUSTRIAL WORKERS, UNITED STATES, 1910-^-5 



I 



I \ 



Income of 

 industrial workers-'^ 



Cash income from 

 'farm marketings 



1910 



1915 1920 



1950 



J^B^ *Manufacturlng, mining, and railway. Data for 19^5 are tentative estimates. 

 11/21^5 



