Share of income spent on basic essentials in the EU 1950-1990s

A major characteristic of life in Western Europe in the second half of the 20^th century was the emergence of consumerism. For the generations who had endured the devastation of two world wars, the economic difficulties that accompanied these and the Great Depression, and widespread food shortages across these five decades, the opportunity to spend their newfound income was embraced. In 1950, at the end of the recovery period after the Second World War, almost two-thirds of all income in Western Europe's* most-developed nations was spent on basic essentials, such as food and clothing. While economic recovery ended for most countries by the early 1950s, rapid economic growth did not stop there. Throughout the 1960s and 1970s, household income increased by around three percent per year in the most developed countries and five percent per year across Southern Europe.

Food spending

In Britain, France, and Germany, the share of income spent on food in 1950 was around 44 percent; this dropped to about 27 percent in 1971, and 13 percent in the 1990s. There were some regional variations, specifically the slower rate of this transition in the south, as 34 and 52 percent of income was spent on food in Spain and Portugal, respectively, in 1971.

Clothing spending

In Europe's 15 most-developed countries, approximately 16 percent of income was spent on clothing in 1950, but this dropped below seven percent by 1996. This was not only because income rose over this period, but also as quality improved due to advances in manufacturing and synthetic materials, and as clothing became more affordable as much of the production was relocated from Europe to China, Turkey, and other parts of East Asia.