notice. In man;y instances they couldn't talk about their work as their lips were sealed b y secrecy orders. Rising prices upset their balanced budgets, caused irritations, and decreased their creative efficiency in the laboratory. Monetary measures do not suffice to instill the desire or ability to create, b u t the wherewithal t o exist a t the standard of living expected of the professional m a n by the public i? essential for irxaximum creative work. T h e chemist should be cognizant of his relative economic status i n the country and he should realize that h e must produce if he is t o receive. Chemists are proud of their contribution t o civilization and careful consideration of the layman's reaction toward t h e chemist leads one t o the conclusion tbiat t h e public is appreciative of the achievements of science. Chemists do n o t come i n contact with the public professionally a s do doctors, dentists, and lawyers. These and other professions aio licensed by the states for
the protection of the public.. Apparently, the public considers this to be t h e only justifiable reason for licensing. Your national committee has noted a belief on t h e part of some members that licensing of chemists will be a cure-all for their professional and economic problems. Your committee recommends that the members of the SOCIETY weigh this matter carefully, for a wrong decision once made will be retracted only with utmost difficulty. The Indian grinding corn between two rocks w a s a processor of foods and the smith a t his anvil was a processor of metals. The day of the individual worker is disappearing. T h e can of corn or the automobile represents the work of many cooperating together in order that more and better products may be produced. Without cooperation, production diminishes t o zero. Chemists are a proud group, proud of their individual and collective accomplishments. They abhor barriers, restrictions, and attempts at regi-
mentation. They are individualists; but wartime research has shown that they can be individualists and y e t work cooperatively. T h e present industrial strife is the result of attempts a t readjustment of relative wages. Chemists are considering whether or n o t this is an individual problem between employer and employee. T h e y have observed what bargaining agencies have done for and t o the worker. T h e public appreciates the scientist for the many contributions in the field of medicine, admires him· for his skill in the production of synthetic rubber, and fears him when he connives to develop an atomic bomb. These illustrations make it very clear that the responsibilities of the scientist are greater than ever before. Your committee hopes you will find food for thought in this symposium and urges you t o evaluate these problems in the same critical manner as you do your investigations in t h e realm of science.
THE CHANGING ECONOMIC STATUS OF CHEMISTS, 1 9 2 6 - 1 9 4 3 ROBERT W . FRENCH
Bureau of Business Research, College of Business Administration, University of Texas
J ; ROM the economic standpoint the major domestic problem facing the American people today i s the problem of inflation. Business and agriculture t o some extent are caught between the upper millstone of wartime price ceilings and the nether milHstone of rising coses. Government, on the other hand, is confronted with the j o i n t problem of using its direct controls o f prices a n d costs t o facilitate the reconversion of the economy from war to peace and at t h e same time of balancing the budget and servicing a debt of well over 250 billion dollars These things must bo done in the face of a great shortage of materials and a tremendous effective demand for goods of all types. Whether these tilings can b e done without further inflation is at t h e moment b3r no means clear. T o t h e individual American, man or
woman, the problem of inflation resolves itself into the question of what h a s happened or is going to happen t o the prices of what he has to sell in relation t o the prices of what he has to buy. Most people have only one commodity t o sell— their labor or services—for which they receive wages or a salary. They have t o buy food, clothing, shelter, gas, electricity, and t h e miscellaneous commodities and services which go t o make up their standard of living. T h e relationship of their money wages or their salaries t o t h e prices they pay determines their real income, which in turn is a primary determinant of their economic status. Like every individual or group of individuals in the United States, the members of the AMERICAN CHEMICAL SOCIETY hnve
seen and may still see profound changes in their economic status. The incomes of A C S members reflected the effects of the boom in the late twenties, as well as the depression of the early thirties. From 1939 to 1945 the economic status of ACS
T H E writer is Indebted t o C. L . Brown, director of t h e Esso Laboratories, Louisiana Division, Standard. Oil Company of New Jersey, in Baton Rouge, for the preparation of t n e charts a n d assistance with the organization and analysis of t h e d a t a presonte *
.
JUNE
2 5, 1 9 4 6
members was conditioned by the sharp rise i n industrial production growing out of t h e defense program and the war effort. There is n o reason to believe that the members
of
the
AMERICAN
CHEMICAL
SOCIETY will remain unaffected by developments in the present inflationary pei iod. Past changes in the economic status of members of the SOCIETY have been the subject of two extensive surveys of the SOCIETY'S entire membership, conducted by the Committee on Professional and Economic Status. T h e first of these surveys, begun late in 1941 and completed in 1942, covered the educational qualifications, geographical environment, annual incomes, monthly salaries, occupational status, sources of employment, and fields of specialization represented b y the S O CIETY'S membership, together with a special analysis of monthly salary rates (1). The second survey, made early in 1944, brought the data in the first survey up t o date and solicited information on 1649
the postwar employment prospects of A C S members (#). I t is the purpose of this paper to present the results of a supplementary investigation of the economic status of chemists from 1926 through 1943. Changes in the money incomes of ACS members during this period are compared with changes in the money incomes of a number of wage, salaried, and professional groups for the same period. An examination is also made of the changes in t h e real incomes of ACS members and various wage, salaried, and professional groups over the same years. In making this investigation, there has been no attempt to prove or disprove any particular point or points with respect to the economic position of A C S members. This study is merely an attempt to present the facts concerning the economic position of AOS members relative t o other groups. The data used in thi*< study were drawn from the two previous surveys of the membership of the
AMERICAN CHEMICAL
SOCIETY and from the surveys of incomes in selected professions and the estimates of wages and salaries in the national income recently made by the National Income Unit in the Bureau of Foreign and Domestic Commerce of the United States Department of Commerce (3, 4, £). Money incomes in all cases were converted to real incomes by using the index of consumer prices prepared by the Bureau of Labor Statistics of the United States D e partment of Labor. These sources pro-
vide virtually all of t h e data on this subject currently available in a usable form. N o field survey was undertaken i n connection with the present investigation. It should be stated at t h e outset, however} t h a t the data used i n this study are subject t o certain definite limitations. I n the first place, the data on income derived from the SOCIETY'S surveys of its own membership d o not represent the earnings of a homogeneous economic group. T h e entire chemical profession is not included in the SOCIETY'S membership and within the SOCIETY itself there are considerable differences in the character of the professional work performed. In the second place f · there a r e no data for other wage, salaried, a n d professional groups that are comparable in detail to the data developed i n the ACS surveys. Finally, income is n o t the sole criterion of the economic status of t h e members of the
AMERICAN
CHEMICAL SOCIETY or
of
any other group even when translated into real income by adjustment for price changes. Permanence of * employment, the possibility of advancement, professional prestige, community recognition, and the opportunity to engage i n creative work are among the factors determining the satisfaction of t h e wants of an individual or any group o f individuals. In the last analysis t h e degree of want satisfaction is the true measure of economic status. The foregoing limitations of the data available on t h e economic status of chemists and other groups in the American
Fig. 1. Median monthly money incomes of members of the ACS of various levels of experience, 1926-1943
economy confine the text t o general trends and broad conclusions. Greater detail will be found in the tables and charts. Table I and Fig. 1 show the money incomes of members of the AMERICAN CHEMICAL SOCIETY of various levels of
experience for the years 1926 through 1943. Money incomes for the years 1926 to 1941 represent t h e median base monthly salaries of all members reporting for that period with a half year's experience, 5 years' experience, 10 years' experience, and 20 years' experience. In other words, exactly half of the members in the several experience brackets received a larger base monthly salary than the income figure plotted and exactly half received a smaller monthly salary. The median base monthly salary is therefore only a representative figure, b u t if a single figure is chosen, this figure i s the most representative from a statistical standpoint. T h e incomes plotted for the years 1926 to 1941 for all experience levels do not include fees, bonuses, or overtime payments which might properly be considered as income. These additions to base monthly salaries were comparatively unimportant during these years. A more detailed analysis h a s shown that the inclusion of such items would have had no effect whatsoever upon median incomes of members with one half and 5 years' experience, since salary—and salary only— determined earnings a t those levels. Furthermore, the inclusion of fees, salaries, and bonuses for members with 10
Fig, 2. Median monthly money incownes of ACS members compared with average monthly money incomes of employees in all private industries and total manufacturing industries, 1929-1943
% 50
1650
CHEMICAL
A N D
ENGINEERING
NEWS
bers with a half year's experience dropped rapidly t o a low of approximately $80 i n 1934 and then rose almost as rapidly t o $209 in 1943, approximately 7 5 % above their 1926 level. The monthly earnings of members with 5 years' experience declined somewhat less quickly from a predepression high of $215 in 1926 to a depression low of $154 in 1934. From that point their earnings increased slowly t o $170 in 1939 and more rapidly to $267 in 1943. T h e incomes of ACS members with 10 years' experience advanced from $278 to $287 between 1926 and 1929, fell to $236 during the depression (1934), and remained approximately at that level until 1941, when they began t o increase rather rapidly t o a high of $322 in 1943. For members with 20 years' experience there was comparatively li tie change in
Table I. M e d i a n M o n t h l y M o n e y Incomes of Members of the AMERICAN CHEMICAL SOCIETY of Various Levels of Experience, 1926-1943 (1,2) Median Monthly Money Incomes 0 0.5Year
5-
10-
20-
Year
Year
Year
All
men Year $248 $388 $278 $215 $121 1926 260 400 287 209 130 1929 236 358 259 173 96* 1932 224 348 236 164 80» 1934 235 340 233 165 109 1937 245 342 233 167 107 1938 255 350 238 170 119 1939 265 350 243 187 127 1940 280 365 258 200 137 1941 287 388 281 221 177 1942 332 422 322 267 209 1943 β Money incomes for 1926 to 1941 represent median base monthly salaries; median incomes for 1941, 1942, and 1943 represent median base monthly salaries plus overtime payments but ex clusive of fp-es and bonuses. & Assumed. men
men
men
men
slightly more than earnings for the 10-year group. T h e incomes of t h e majority of ACS members therefore did not reach their previous high levels until 1939; gains thereafter were relatively modest. The next five charts show the monthly money incomes of members of the AMERICAN CHEMICAL SOCIETY of various levels of
experience compared with the money incomes of workers in all private industries, in manufacturing alone, i n the chemical and allied industries, in t h e petroleum and coal products industries, in banking, and in a number of other gainful occupations Plotted figures for the foregoing industrial a n d occupational groups have Inicn superimposed for comparative purl >oses on the chart showing the money incomes of A C S members already analyied. No further explanation of income data for
Table I I . M e d i a n M o n t h l y M o n e y Incomes Incomes of meinbera of AMERICAN CHKMICAL SOCIKTT of various levels of experience compared with the average monthly money inoomee of employees in selected private industries, δ) Average Monthly Money Incomes Crude pe Automo Printing, bile and troleum Engineering Radio publish automo Chemical and natural Petroleum Total Air All and other broadcasting, and bile equip and allied gas produc and coal manufac professional transpor ins and allied ment in products tion products turing private tation •emce· Banking television industries Railroads dustries industries industries industries ndustries industries Year $193 1929 $209 $219 $129 $117 $164 $168 $146 $168 $139 $154 $151 202 169 15» 219 168 143 131 159 165 137 124 113 1930 198 158 157 22S 162 138 121 158 134 114 105 151 1931 196 143 151 228 145 122 103 135 133 118 96 91 1932 186 135 144 133 120 119 109 91 85 98 125 209 · 1933 183 134 147 183 137 125 110 123 112 96 90 126 1934 183 133 152 174 142 137 124 132 130 115 101 94 1935 187 1 4 7 158 185 1 4 2 144 1 3 3 1 3 6 1 3 3 121 107 9 8 1936 188 148 1GO 197 144 148 139 130 115 1Θ5 153 145 1937 189 159 162 208 141 154 138 155 145 135 108 101 1938 194 164 164 202 143 156 147 154 140 134 114 105 1939 187 159 164 213 147 159 161 163 143 144 119 108 1940 188 187 165 215 154 170 187 148 158 138 122 176 1941 191 221 172 226 164 191 240 201 161 177 167 144 1942 296 257 178 249 180 215 192 199 196 169 248 234 1943
money incomes over the entire 17-year period. From approximately $400 in 1929 the incomes of such members decreased t o $340 in 1937 and climbed to about $422 a month in the year 1943. From the chart it is clear that the greatest decrease in monthly earnings during the depression and the greatest increase during the recovery and war boom phases of the cycle were experienced b y ACS members w h o had put in the fewest years in the profession, with the 5-year, 10year, and 20-year members following in that order. Compared with the prosperity phase of t h e cycle following the first World War (1926-29) and the depression situation (1934), there was a markedly smaller differential in 1943 between the four experience groups than there was earlier. This fact was due to the greater gains in incomes by the groups with less experience. It likewise points to a conclusion borne o u t in the succeeding analysis that the trends *a income among chemists appear to be a function of the earnings level rather than of experience. Regardless of age or experience, the median monthly income of all ACS members closely paralleled the earnings record of members with 10 years in the profession. From 1926 to 1927 the median monthly income was slightly less and after 1937
and 20 years' experience in the profession would have made only slight additions to the figures for the years 1926 t o 1941. The income figures for the years 1941, 1942, and 1943 for all experience levels represent the median base monthly salaries plus overtime payments but ex clusive of fees and bonuses. Again these figures accurately represent .the total median earnings of members in the lower experience brackets and closely approxi mate actual total earnings at the 10- and 20-year experience levels. Before proceeding with the analysis βof the first chart, it should be noted that the earnings per month of the several experi ence groups for the indicated years are plotted oh a semi-logaritlunic scale. This has been done to facilitate accurate com parisons of the rates of increase and de crease between the several groups. Use of a simple arithmetic scale would have ob scured the comparisons. T h e median monthly income* of mem bers with half a year's experience in the profession rose from $121 in 1926 t o $130 in 1929, the peak year of prosperity follow ing World War I. Assuming that the earnings of members in this expérience bracket followed the pattern of earnings reported by members in the higher brackets, the monthly incomes of memV O L U M E
2 4,
N O .
12
»
»
*
J U N E
2 5,
1 9 4 6
ACS members is therefore necessary, butseveral facts should be noted concerning the data for other industries and occupations before any comparisons are made between these and data for ACS members. The figures for the monthly money incomes of workers in other industries and occupations (see Table II) were derived from the annual average earnings in wages and salaries per full-time employee. Wages and salaries, as defined for this purpose, include all payments accruing to persons in an employee status as compensation for their work. They include commibsions, tips, and bonuses as well a s cash payment* commonly referred to as wages and salaries. Thoy do not include dismissal pay, directors' fees, employer contributions to social insurance funds and t o private pension plans, and accident compensation payments. They measure wage and salary income per man year of full-time work. Within a particular industry they reflect the average earnings of all employee groups from the corporation executive to t h e charwoman. Comparisons of the money incomes of ACS members with the money incomes of workers in other industries and occupations in this series of cJharte are admittedly rough. Average inoomee computed ae arithmetic meane are invariably aome1651
J e
500
SOO
450
450
400
400
50
Fig. 3. ^ Median monthly money incomes of ACS members of various levels of experience compared, with average monthly money incomes of employees in chemical and allied products industries, crude-petroleum and natural gas production industries, and petroleum and coal products industries, 1929-1943 what lower than average incomes computed as medians because the median is less affected than the mean by the relatively few high incomes. However, the differences between the median incomes of ACS members and the mean average incomes of other groups of workers are not too great since the numbers of workers involved are large. Moreover, both sets of income data are fairly inclusive of all earnings on a full-time basis. Indued the principal usefulness of these data lies in interindustry and intertemporal comparisons. The first in this series of charts (Fig. 2) shows the money incomes of members of the
AMEBICAN
CHEMICAL
SOCIETY
of
various levels of experience compared with the money incomes of employees in all private industries (including agriculture, mining, construction, manufacturing, trade, finance, transportation, communication, public utilities, and services—about 39,000,000 persons) and in manufacturing alone (about 17,500,000 persons). T h e median incomes of ACS members just entering the profession follow very closely the average monthly earnings of employees in manufacturing and all private industries. The average earnings of manufacturing workers were slightly higher than the average earnings of ACS members with half a year's experience from 1929 to 1938 and slightly lower from 1938 t o 1943. The average earnings of workers in all private industries were consistently some-
1652
Fig. 4. Median monthly money incomes of ACS members of various levels of experience, compared with average monthly money incomes of employees in automobile and automobile eauipment industries, and railroads, 1929-1943
what below the median earnings of the half-year members of t h e AMERICAN CHEMICAL SOCIETY. Since mean average earnings are generally higher than median earnings, the median earnings Une for workers in manufacturing and all private industries would be well below the average earnings of the entering A C S members. It is reasonable to conclude that ACS members have rather definitely done as well through the years as workers in the other two groups. The next chart in the series (Fig. 3) shows the money incomes of members of the
AMEHICAN
CHEMICAL
SOCIETY
of
various levels of experience compared with the money incomes of employees in the chemical and allied products industries, in the industries producing crude petroleum and natural gas, and in the petroleum and coal products industries. Earningr of workers in the petroleum and coal products industries follow a course about midway between t h e median incomes of ACS members with a half year's and 5 years' experience. From 1939 to 1943 workers in these industries lost some ground t o ACS members with half a year's experience, but picked u p a little with respect to the 5-year group in the AMERICAN CHEMICAL SOCIETY.
From the
standpoint of income, employees in the chemical and allied products industries started t o lose out t o beginning ACS members in 1939 and actually fell below them in 1942 and 1943. These income
CHEMICAL
trends were even more noticeable in the case of employees in the industries producing crude petroleum and natural gas. In these industries average incomes dropped below the incomes of petroleum and coal products workers in the last two years of the period. It must be remembered that adjustment to median earnings would lower t h e average earnings curves for all three industrial groups. Fig. 4 shows the money incomes of members
of
the
AMERICAN
CHEMICAL
SOCIETY of various levels of experience compared with the money incomes of employees engaged in the manufacture of automobiles and automotive equipment and in the operation of the railroads. Again the incomes of workers in these industries fell between the earnings levels of ACS members with a half-year's and 5 years' experience, b u t the half-year ACS members gained on the railroad workers after 1938 and almost equaled their earnings in 1943. After 1938 employees in the automotive industry, however, outstripped in income the ACS members with half a year's experience and caught up with the*5-year members. In all cases median earnings are compared with mean earnings. Fig. 5 shows the money incomes of members
of
the
AMERICAN
CHEMICAL
SOCIETY of various levels of experience compared with the money incomes of employees engaged i n banking, printing and publishing, and radio broadcasting
AND ENGINEERING
NEWS
the average earnings of employees i n radio broadcasting and television. T h e final chart in this series (Fig. 6) shows the money incomes of members of
Table III. Median Net Monthly Ivtoney Incomes oF Physicians and Lawyers i n Inde pendent Practice, 1929-1941 (-4) Year Ptiysicians Lawyers 1929 S324*e $283* 1933 183 α IDS* 1935 229 21S6 1936 270 222 1937 269 23© 1938 252 1939 257 22S 1940 270 1941 313 243β Calculated b y a p p l y i n g 0.744 to aver-age n e t income (0.744 «= a v e r a g e ratio of median, net in come to average net i n c o m e for years 193&—1941). & Calculated b y a p p l y i n g 0.614 to aver-age n e t income (0.614 «= a v e r a g e ratio of median, net i n come t o average net income for years 193β, 1937, 1939, and 1941).
the
AMERICAN
CHEMICAL
SOCIETY
of
various levels of experience compared with the money incomes of persons engaged in air transportation and in the profession of engineering and other professional serv ices. The average (mean) earnings of these two groups are likewise roughly com parable for the period covered to t h e med ian earnings of ACS members 5 years after entering the profession. With some variations from year to year, workers rendering engineering and professional services caught up with the 5-year group of A C S members during the war years in terms of income. Reduction of average mean incomes to median incomes would result in somewhat lower earnings for this group. The incomes of workers in âir transportation remained relatively constant through the years, failing t o suffer the depression decline of the ACS members with 5 years' experience and failing to match their wartime advance. After 1940 the median earnings of the 5-year ACS group were increasingly larger than the average earnings of employees in air transportation. T h e next two charts present comparisons of the money incomes o f ACS members of various levels of experience with the money incomes of physicians and lawyers in independent practice (/, 2). These data for physicians and
and television. The average Cmean) monthly earnings of these industrial groups are roughly comparable tx> the median earnings o f ACS members -with 5 years' experience. For the period 1*929 t o 1943 the incomes of persons engaged in banking and the printing and publishing business were lower but steadier than the incomes of 5-year ACS members. The latter fact meant that 5-year ACS mem bers made significant gains over these t w o groups after 1939 when their incoraies be gan to rise. Following a paradoxical rise in earnings during the depression, t h e workers in radio b>roadcasting and t e l e v i s ion had about the same income expedience as 5-year ACS members until 1938, when they began to lose out. In 1942 a n d 1943 the median earnings of ACS mesmbers with 5 years' expedience were greater than
Fig· 5. Median monthly money incomes OJ/4.CS members of various levels of experience^ vs. money incomes of employees in. printing, publishiwig, and allied industries, radio broadcasting and television*,; and banking, 1929—1943
lawyers appear t o be the only available data suitable for comparison with the incomes of A C S members w i t h 10 years* experience. Fortunately, t h e income figures for physicians and lawyers represent median rather than mean, earnings, and net, rather than gross income. These characteristics of the data bring them more in line with the earnings figures for ACS members. T h e first of these charts (Fig. 7) reveals that ACS members with 10 years' experience have consistently held an income position somewhat superior t o the lawyer engaged in independent practice. During the depression the median income of the 10-year ACS member was less affected than the median net income of the lawyer, although the lawyer's income recovered more rapidly. Median income data for physicians indicate that physicians' incomes fell below the incomes of ACS members with 10 years' experience during the depression years, but rose to surpass the incomes of some A C S groups in 1936 and thereafter. I n the years from 1936 t o 1941 the difference in income between the . two professional groups was approximately $30 per month. Since 1941 t h e differential appears t o have widened considerably in favor of the physicians, from a later survey of their income. A question may quite properly be raised as t o the comparability of the median net income of all physicians and lawyers w i t h the 10-year ACS group. The minimum training requirements for
Fig. 6. MJedian monthly money incomes of ACS memherm of various experience levels vs. average monthly money incomes of employees in engineering and other jprofessional services, arid air transportation (common carriers), 1929— 1943
too 4SO
|4 00 3SO 300 2&0
SOURCESc SPECIAL SURVEYS OF AMERICA* CtEWCAL SOCIETY HElfiERS. - w % COKOjCTEO IN 1941 ΛΝ0 19*4 A M ) SURVEY Of CURRENT BUSINESS
n
VOLUME
2 4,
NO.
12
*
»
JUNE
2 5,
1946
1653
Table I V . M e d i a n M o n t h l y Real Incomes of Members of the AMERICAN CHEMICAL SOCIETY of Various Levels of Experience, 1 9 2 6 - 1 9 4 3 ( 7 , 2) Median Monthly Real Incomes 0 201050.5Cost of Living Year Year Year Year men men men men Year Index* $307 $220 $170 $ 96 126.4 1926 327 234 171 106 e 122.5 1929 367 265 177 9 8e 97.6 1932 364 247 161 84 95.7 1934 331 227 161 106 102.7 1937 339 231 166 106 10O.8 1938 352 239 171 120 99.4 1939 349 243 187 127 100.2 1940 347 245 190 130 105.2 1941 333 241 190 152 116.5 1942 341 261 216 169 123.6 1943 * Real income a s computed here represents money income adjusted b y cost-of-living index of U. 8. Department of Labor (1935-39 =» 100). * Bureau of Labor Statistics, U . S. Department of I*bor. 1935-39 = 100. * Assumed.
physicians and lawyers in most cases are higher than t h e minimum, or perhaps average, training received by the AC& members in the 10-year experience group Furthermore, t h e median age of all ACS members is approximately 35. The typi cal ACS mc-inber enters the profession at 23 and his median years of experience are 12. Physicians and lawyers customarily enter their respective professions some what later and may o n the average show more years of experience. If such is the case, a better comparison might be drawn between the median income of all ACS members with a n average experience of 12 years and median income of the average physician and lawyer. In that event the
gap between the earnings of A C S members and those of physicians would be less for all years except 1937. The g a p between earnings of ACS members a n d lawyers would b e less before and greater after 1937. The second chart in this group (Fig. 8) shows the money incomes for members of
thoso a t the lowest experience level and t o the earnings of the more highly paid salaried and professional groups. In t h e absence of a more applicable index, how ever, t h e bureau's index has been used. The real incomes of members of t h e
the
levels of experience are shown in the first of these two charts (Fig. 9 ) . From t h e chart it appears that the real earnings of members in the lowest experience bracket have gone from about S100 a month in t h e late twenties t o $169 a month in 1943. Members with 5 years in the profession have seen their median monthly real i n come rise from S170 to $216 in t h e same interval. The real incomes of 10-year members have risen from around $230 to> $261, while the real incomes of 20-year members have gone up from $307 in 192G t o $327 in 1929 and $341 i n 1943. It i s thus apparent that members with t h e greatest .experience have as a group made h t tie gain and have actually suffered a. decline in real earnings since 1932. I n contrast, the group with t h e least experi ence h a v e enjoyed a striking addition totheir real earning power, particularly since 1934. T h e real incomes of members in the 5-year and 10-year experience brackets have followed intermediate pat terns. The higher the money income level, t h e less gain in terms of real income.
AMERICAN
CHEMICAL
SOCIETY
at
various levels of experience a n d the me dian money income (including fees and bonuses) of all ACS members without re gard t o experience a s compared with the median net incomes of physicians and lawyers (see Table I ) . As would be expected, there is a closer correspondence in the Income patterns of the three pro fessional groups at all points except for the lawyers after 1937. On this basis the differ ential in the incomes of ACS members in the 1944 survey indicates a drop in the median age of the SOCIETY'S membership. The last t w o charts present changes in the economic status of members of the AMERICAN CHEMICAL SOCIETY in terms of
real income (see Table I V ) . As was stated, monthly earnings have been con verted t o real income by use of a standard index of consumers' prices prepared b y the Bureau of Labor Statist ics. T h e principal objection to this procedure from a statisti cal standpoint is that the bureau's index is set u p to measure changes i n the prices of t h e commodities and services pur chased by t h e wage earner and lowersalaried clerical worker. This fact would preclude the strict application of the index to the incomes of all ACS members except
Fig. 7.e Median monthly money incomes of ACS members of various levels of experience, compared with median net monthly money incomes of physicians and lawyers. 19291941
ALMERICAN CHEMICAL SOCIETY of various
The final chart (Fig. 10) presents real income comparisons of the four experience levels of ACS membership and t h e aver age real earnings of employees in manu-
Fig· 8» Median niortthly money incomes of ACS member» of various levels of experience, median monthly money inconrte of ACS members, and median net monthly mon-ey incomes of physicians and lawyers, 1929-1941 soo 45» 40» 3>0
•DATA FOR MEN OF 0 . 5 YEAR'S EXPERIENCE WERE ASSUMED FOR THE YEARS 1932 AND 1934
SPECIAL SURVEYS OF AMERICAN CHEMICAL SOCIETY MEMBERS, , CONOUCTEO IN 1941 ΑΝ0 1944 AND SURVEY O F CURRENT BUSINESS
J sc
t654
C H E M I C A L
A N D
E N G I N E E R I N G
N E W S
facturing, all private industries, engineer ing and professional services, chemicals and allied products industries, petroleum and coal products industries, radio and television, banking, and the automotive industry (see Table V ) . These compari sons tell the same story as the preceding chart. Real incomes for the lower income groups have increased the most markedly during the period from 1926 to 1943. The rate of increase, however, diminishes with the income level, and although exact data are not available, it would appear that the higher income groups have lost ground in real earning power to the lower income groups since the depression. From this supplementary investigation of the changing economic status of chem ists from 1926 through 1943, the following general conclusions emerge,.
Tabic V .
Petroleum and coal Cost of products living industries index* \ear 1929 122.5 $126 133 115 104 95 119.4 1930 123 105 97 145 144 140 210 111 108.7 1931 121 98 93 138 147 155 234 106 97.6 1932 118 98 92 146 135 156 226 106 92.4 1933 140 132 117 100 94 154 191 115 95.7 1934 117 103 96 135 136 155 177 126 98.1 1935 122 108 99 137 14$ 159 187 134 99.1 1936 149 127 112 102 144 156 192 135 102.7 1937 134 107 100 154 158 161 206 137 100.8 1938 135 115 106 155 165 165 203 148 99.4 1939 144 119 108 159 163 164 213 161 100.2 1940 150 131 116 178 157 167 204 178 105.2 1941 152 143 124 190 173 148 194 206 116.5 1942 161 159 137 208 144 201 189 201 123.6 1943 a Real income as computed here represents money income adjusted by cost-of-living index of U. 8 . Department of Labor (1935-39 =· 100). * Bureau of Labor Statistics, U . S. D e p a r t m e n t of Labor. 1935-39 — 100.
3. Real earnings of the younger chem ists with less experience have increased markedly in recent years, while t h e older chemists have gained little in real earnings. Similar trends were also a p parent for other industrial groups for which data were available. At present the economic status of t h e members
of the members of the AMERICAN CHEMI
of
the
AMERICAN
CHEMICAL
SOCIETY and of all other groups in the economy is threatened by inflation. T h e operation of the economic system in these times does not and will not bear equally on all groups. I t is safe to a s sume that the transition from war t o
CAL SOCIETY, however, have generally been above the median earnings of law yers. Better comparisons in income could undoubtedly be made between these pro fessional groups if data on incomes were available to permit comparisons of earn ings at the same experience levels. Median monthly real incomes various levels of experience,
of ACS members 1926—1943
of
peace will produce further changes in t h e economic status of t h e membership of this society. I t remains to be seen what those changes will be. Literature
(2) Fraser, Andrew, Jr., CHEM. EMTG. N I W B ,
22, 164, 621, 791, 1084, 1378, 1712 (1944). (3) Survey of Current Business, 23 (July, Aug., Sept., and Oct. 1943). (4) Ibid., 24, 15 (April and May, 1944). (5) Ibid., 25, 19 (June, 1945).
Fig* 10. Median monthly real incomes of ACS of various experience levels vs. average monthly comes of employees in selected private industries,
REAL INCOME AS COMPUTED HERE REPRESENTS MONEY INCOME A0JJSJED BY C O S T - O F - L I V I N G INDEX OF THE BUREAU Of .LABOR S T A T I S T I C S OF THE U . S . DEPARTMENT OF LABOR ( 1 9 3 5 - 3 9 - 1 0 0 )
2 4,
NO· 12 »
»
JUNE
Cited
(1) Fraser, Andrew, Jr., CHEM. ENQ. New», 20, 1289, 1497, 1563, 1635 (1942).
A MANUFACTURING • PRIVATE INDUSTRIES A £ N G . & PROFESSIONAL SERVICES OCHEMICALS & ALLIED PRODUCTS INDUSTRIES
VOLUME
with
Auto mobile Fneineerand auto ine and other Radio mobile profesequip broadcast sional ment in ing and dustries television Banking service· $134 $158 $171 $123 133 183 110 ' 142
Chemi cals and All allied Total prod private manufac ucts in turing indus industriee dustries tries $ 96 $105 $113
I. The money earnings of A C S mem bers during this period have been quite comparable t o the earnings of other groups in the population when t h e various experience levels of ACS members are compared with similar income groups of the population. * 2. T h e median incomes of the A C S membership have followed a steadier course than those of physicians and lawyers. In recent years t h e median earnings of chemists have been below those of physicians. T h e median earnings
Fig. 9.
Median Monthly Real Incomes
(Incomes of members of AMERICAN CHEMICAL SOCIETY of various levels of experience compared t h e average monthly real incomes of employees in selected private industriee, δ) Median Monthly Heal Incomes 0
members, real in 1929-1943
4 PETROLEUM & COAL PROOUCTS Ο RAO 10 BRA0CASTING & TELEVISION • BANKING XAUTOMOBILES AND AUTOMOTIVE EQUIPMENT INDUSTRIES
••REAL INCOVE AS COMPUTED HERE REPRESENTS MONEY « WCMJE AOJUSJEO BY COST-OF-LIVING INDEX OF THE BUREAU OF LABOR STATISTICS OF THE U . S . DEPARTMENT OF LABOR ( 1 9 3 5 - 3 9 - 1 0 0 1 .
2 5, 1 9 4 6
1655
