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ECONOMIC TRENDS
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STANDARD OF LIVING
The standard of living of the people could he defined as the necessaries, comforts and luxuries to the consumption of which they are accustomed. This standard relates to a given set of cireumstances which include income, prices, conditions of supply and demand, etc. This section does not deal with the concept of the standard of living as understood in this sense of the term due to the obvious limitations upon such an analysis. An attempt is made here to study the income and expenditure pattern of families belonging to different income groups for a particular year rather than for a period of time. Broad conclusions are drawn on the basis of factual study. This study does not indicate as to whether people are better off or worse off today than what they were in the past; but it merely indicates the changing patterns of the standard of living. The places and families selected for the survey are such as to represent broadly the pattern of income and expenditure in the district.
A survey was conducted in 1963 and the account that follows is based on the information collected and on-the-spot observations made during the course of the survey.
The families were categorised in three income groups, viz., the lower, the middle and the higher, both for urban and rural areas each representing annual incomes up to Rs. 1,200, between Rs. 1,200 and Rs. 3,000 and Rs. 3,000 and above, respectively. The other details of families such as number of members, age, relationship with the head, number of earning members, educational qualifications, civil condition, subsidiary occupations were also taken into consideration. For the sake of analysis, a family is taken to be of four adult members, i.e., three adults and two minors.
The income of a family or a household was taken to represent its earnings from all sources, including earnings from landed or other types of property, business or profession.
The pattern of expenditure is the sum total of several socio-economic, religious and environmental forces and the nature of the work in which its members are engaged.
It will be interesting to study the consumption pattern in the light of these various forces. Moreover, advancement in the field of economy brings new things to the fore, thereby affecting the consumption pattern. The pattern of consumption undergoes constant changes. The comforts and luxuries of yesterday become necessaries of today. Consumption, therefore, becomes a measuring rod of the standard of living of the people. However, only a broad picture can be presented with the help of the sample survey.
The different items of consumers goods and services are grouped into two broad categories viz., food group and non-food group. Having regard to the comparatively small size of the sample survey and the limitations on the accuracy and authenticity of the information gathered, it is not possible to give estimates of expenditure on individual items or even smaller group of items. The food group is, therefore, divided into five subgroups, viz., (1) cereals and pulses, (ii) milk and its products, (iii) edible and related products, (iv) vegetables and (v) other items in which may be included sugar, meat, fish, eggs, salt, spices etc. Similarly, the non-food group is divided into five sub-groups viz., (1) clothing, (ii) fuel and light, (iii) education, (iv) rent and medical expenses and (v) others including expenses on religious matters, entertainment, transport, social obligations etc.
The following is a general description of the income and expenditure pattern of different classes of families in the urban and rural areas.
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