At a time when prices for everything from eggs to gasoline are high, I thought it might be interesting to share a list of commodities and services that are actually much cheaper than they once were when compared to dollar values and wages in the past.
Will this take the sting out of today’s sky-high grocery, energy, or housing prices?
I doubt it. But sometimes, it doesn’t hurt to look on the bright side. It might make that trip to the store less painful.
The following list was sent to me by an economist friend who has gratefully done the math and determined that when adjusted for inflation, average income, and a few other economic computations, we are, in fact, paying less for these items than we once did. After perusing the list, please continue reading for my take on how Americans’ expectations for the American Dream have declined.
My economist friend pointed out that innovations in technology, increased competition, and improvements in manufacturing and logistics are often the reasons for these surprising price drops. That means a few everyday items are much cheaper now than in decades past.
Here they are:
Clothing
In the mid-20th century, the average American family spent about 10% to 12% of their household income on clothing. Today, that figure has dropped to around 3%. It’s not because people are buying less: The average person buys about 70 new apparel items a year, compared to approximately 25 items per person in 1960. So why are people spending so much less?
Starting in the 1970s and into the 1990s, most U.S. clothing production moved overseas, where labor costs were lower and production output was higher. Those savings were passed onto consumers, and as fast-fashion brands proliferated, Americans had more options at lower prices than ever before. According to data from the U.S. Bureau of Labor Statistics, on average, a woman’s dress cost $50 in 1960. Adjusted for inflation, that’s about $530 today — not unheard of, but far above prices at the most popular clothing retailers today.
Bananas
Bananas have been a staple fruit in the American diet for decades, and while they’re one of the cheapest and most popular fruits in the supermarket now, they started as a luxury item. Bananas first became available in the U.S. following the Civil War. They sold for about 10 cents apiece at the time—about $3 per banana today.
The price of the fruit has hovered between 50 and 60 cents per pound for the last 20 years — a significant drop from its early cost. Most bananas sold in American stores are imported from faraway places, including Guatemala and Honduras, and require cooling containers for shipping. Despite these barriers, labor costs remain low, and banana importers sell only one variety, the Cavendish, meaning the fruit can be harvested in abundant volumes and ripened at the same time. That helps keep production and shipping efficient and reduces the cost to consumers.
(The other day, while shopping at my local Sam’s Club, the price for an entire bunch of bananas [about eight] was only $1.89).
Television sets
It’s no surprise, prices decrease as technology improves and becomes more efficient. However, one consumer electronics category stands out from the rest for its drastic price cuts: televisions (even as they get bigger and bigger). When RCA debuted its first color TV set in 1954, the 15-inch screen came with a $1,000 price tag. According to the U.S. Bureau of Labor Statistics’ inflation calculator, that would be more than $11,600 today.
By comparison, a 65-inch, high-definition smart TV might set you back less than $500 today, and while that’s neither the high nor low end of the current television market, it’s a good indicator that TVs are much more affordable than they used to be.
There are several reasons for the major price cuts over the years, including increased competition and advancements in manufacturing (especially the process of cutting several screens out of a larger sheet of “mother glass”). But there’s another factor keeping TV prices low: Consumers’ viewing data is being collected and sold to advertisers.
Airfare
It may feel like airfare has surged in recent years due to increased fuel prices and airport taxes, yet airline tickets — fees included — have actually become much more affordable over time. Commercial air travel used to be a luxurious experience available only to the wealthy. It wasn’t until President Jimmy Carter signed the Airline Deregulation Act in 1978 that competition opened up, flight paths and schedules increased, and airline prices began to come down. In 1941, an average one-way flight from Los Angeles to Boston would have cost more than $5,000 in today’s money (and taken an excruciating 15 hours); now, a nonstop, one-way flight from Los Angeles to Boston commonly costs around $800 and takes about six hours. And an average domestic round-trip airfare is about $600 in the U.S.
Washing Machines
Household appliances have seen many technological advancements over the years, and while high-end luxury products are still out of reach for the average consumer, other appliances have become much more affordable over the years. The price of washing machines, an invaluable addition to modern life, has changed significantly from the 1950s to today.
In 1959, a Kenmore washer was advertised in Sears’ “Wish Book” Christmas catalog for $209.95. (The matching dryer was listed at $169.95.) Today, that amount inflates to more than $2,200 — a $1,600 difference from a basic $500 to $600 top-loading Kenmore machine today.
Toys
Although it may not feel like it to modern parents, toys are cheaper — and more plentiful — today than in decades past. The U.S. Bureau of Labor Statistics shows significant deflation of toys over the past 30 years, primarily resulting from increased reliance on inexpensive overseas production and more competition from toy brands and major retailers.
Considering today’s popular toys, from Squishmallows to STEM gadgets to LEGO sets, prices average out at about $50. That is not too different from the $25 Cabbage Patch Kids of the 1980s (about $70 today), or the $8 Rock’em Sock’em Robots of the 1960s (about $80 today), but the current cost of similar toys is much less than those inflated costs.
Today, you can get a modern Rock’em Sock’em set for under $30, or a standard Barbie doll for about $12 — much less than an average Barbie from the 1994 JC Penney catalog, which, at $15, would cost more than $30 today.
Aluminum
Once considered a precious metal more valuable than gold, aluminum became drastically cheaper in the late 19th century. Although it’s the most abundant metal in the Earth’s crust, extracting it from ore wasn’t always easy. After the Hall-Héroult smelting process was developed in 1886 by two different scientists — Charles Martin Hall in Ohio and Paul-Louis-Toussaint Héroult in France — it became easier to isolate aluminum, which revolutionized its production.
In 1884, when the element was still rare and expensive, the United States used 6 pounds of it atop the Washington Monument. At the time, aluminum cost about $17 a pound — that would be more than $500 per pound today. Within a few short years, thanks to Hall and Héroult’s new process, the price of aluminum plummeted. Today, the metal is worth about $1.15 a pound and is most used in everyday aluminum cans.
So, there you are. You might still argue that soaring inflation and higher prices for everything else today might offset the relatively lower prices of the items listed above.
For example, eggs. They were about $4.98 a dozen at my local grocery store today. In 2021, a dozen eggs cost about $1.60. Of course, the price of eggs today has nothing to do with the cost of production or the cost of layer hens.
Egg prices are a direct result of the avian flu (H5N1 virus) that infected layer hens in 2021 and the decision in 2022 by the Biden administration to slaughter some 166 million chickens to control the disease. Mass culling of infected animals to prevent the spread of a disease or to keep it from jumping to humans has long been the preferred method of dealing with infectious diseases.
However, some poultry producers, disease experts, and government officials are questioning the practice of widespread culling in response to outbreaks. Strategies such as targeted depopulation, vaccinations, and even the relocation of wetlands and bodies of water are now under consideration as alternatives.
Of course, if the price of eggs were the only thing we had to worry about in today’s hyper-inflated economy, we would all sleep better.
But the fact is, the cost of living today is through the roof for most of us. During the eight years of the Obama administration and the four years of the Biden administration, Americans were told that the traditional American dream of single-family home ownership might no longer be realistic and that the future may be multi-family housing. Instead of sprawling subdivisions of single-family homes, Americans should move into condensed multi-story apartment or condominium complexes.
In my city of Murrieta, California, at least a dozen multi-family apartment multiplexes and condos are currently under construction. When finished, that will likely add another 25,000 people to our population of 100,000 and further increase congestion on our roads and in our schools—but hey, at least the Obamas and the Bidens won’t be impacted. They own well-guarded multi-million-dollar mansions on substantial acreage miles away from the great unwashed.
They are perfect examples of NIMBY (Not in My Back Yard) millionaires who have gorged themselves at the public trough and exploited their statuses while telling the rest of us to shut up and go live on top of one another in teeming multistory hutches.
Once again, it’s the archetypal Democrat refrain of “rules for thee, but not for me.”
The Obama and Biden administrations admonished us to lower our expectations, give up our gas ovens and stoves, buy electric vehicles, take shorter showers, learn to live with the scourge of homelessness, eat less meat and more bugs, stop driving cars, take public transportation, and accept open borders.
Forget about single-family home ownership, they told us. Land is too precious for you to own a single-family home. Abandon a few freedoms and expectations for the betterment of the world.
What world? A world ruled by globalist elites who, instead of serving their electorates, dominate them like docile serfs?
I have just two words for them: No Thanks!
–30–
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