1958 - Commerce

Commerce

U.S. unemployment reaches a postwar high of more than 5.1 million, and the Department of Labor reports that a record 3.1 million Americans are receiving unemployment insurance benefits. Economic recession grips the nation with nearly one-third of major industrial centers classified as having "substantial" unemployment.

The upper 1 percent of Americans enjoys nearly 9 percent of the nation's total disposable income, down from 19 percent of disposable income in 1929. Sixty-four percent of households have incomes above $4,000 per year, up from 40 percent in 1929, but white families average twice as much as nonwhite families.

The median U.S. family income is $5,087, up from $3,187 in 1948 (half of all families have incomes below the median), but prices have climbed along with incomes. A house that cost $47,409 in 1948 sells for $59,558, a family size Chevrolet that sold for $1,255 sells for $2,081, a gallon of gasoline has climbed from 25.9¢ to 30.4¢, a pair of blue jeans that sold for $3.45 sells for $3.75, a pair of men's shoes that was $9.95 is now $11.95, a daily newspaper that cost 3¢ now costs 5¢, a year's tuition at Harvard that cost $455 costs $1,250, a hospital room that cost $13.09 per day costs $28.17, a pound of round steak that costs 90.5¢ costs $1.04, a Nathan's hot dog that cost 20¢ costs 25¢, a ticket to a Broadway musical that cost $6.00 costs $8.05. Some prices have come down: a ranch mink coat that cost $4,200 in 1948 costs $4,000, a roundtrip flight to London from New York that cost $630 costs $453.60, a phone call from New York to Topeka, Kan., that cost $1.90 costs $1.80 (day rate), a pound of chicken that cost 61.2¢ has come down to 46.5¢.

The Visa card has its beginnings in the BankAmericard introduced by California's Bank of America (see Franklin National, 1951). The card costs the consumer nothing and relieves subscribing merchants of credit worries in return for a small percentage of each retail sale charged. Card users must pay 18 percent interest on unpaid balances and 12 percent on cash advances obtained by presenting the card at teller windows (see 1966).

The American Express Card launched officially October 1 by American Express Co. requires an annual fee from "members" who use what is initially a paper card to charge air fares, auto rentals, hotel and motel rooms, restaurant meals, and other expenses (see travelers cheques, 1891). American Express has issued 250,000 cards before the official launch date. It charges an annual fee of $6, it sets out to overtake Diners Club, whose $5 per year card started the travel and entertainment card business in 1950, and beginning next year will lead the industry in issuing plastic cards.

Wall Street's Dow Jones Industrial Average closes December 31 at its high for the year of 583.65, up from 435.69 at the end of 1957.