Consumer Prices — 1950 vs 2020

My 95-year-old Grandfather has often boasted how much cheaper things were 70 years ago. Milk, movies, land, college — life was cheap, and life was good. There are obviously lots of data out there capturing price increases in certain goods and services, but when I tried to compare this specific 70-year window in the US, I found no good research. In need of a decent response to his boasting, I searched through old coupons, advertisements, and some legitimate research to see — just how accurate are my Grandfather’s fond memories of the past?

My goal was to uncover major price changes through a range of (mostly) apples-to-apples consumer expenditure comparisons of 1950 to 2020. Warning — the comparisons aren’t always perfect, there isn’t always great data for 1950 or 2020, and the analysis represents broad categories through only a few goods.

I don’t attempt to uncover the “why” for some of these price changes, that is its own beastly analysis, although my Grandfather might say “life was just different” or “we had Truman in charge”. Only the numbers are presented here, so be prepared to draw your own conclusions. Personally, my single biggest takeaway (which isn’t a shocker but having the numbers is helpful) is that the categories with the most severe increases in price — Healthcare, Education, and Housing — present the most opportunity for innovation.

The Data

Specific goods and sources used for the analysis.

Methodology

• This analysis focuses on the US consumer.
• I tried to find examples as close to 1950 and 2020 as possible to demonstrate the most accurate change, but sometimes the data did not exist.
• Oftentimes the same product or service didn’t exist in 1950 and in 2020, in that case, I tried to find the most comparable examples.
• The sources for prices vary in their “reliability”. Some are taken from off the beaten path websites, old advertisements, or an individual’s recollection of prices.
• A standard inflation calculator was used to adjust everything to 2020 dollars.

Sources

[1] https://www.eia.gov/totalenergy/data/annual/showtext.php?t=ptb0810

[2] https://www.firstversions.com/2015/06/pampers.html

[3] https://www.walmart.com/ip/Pampers-Swaddlers-Soft-and-Absorbent-Diapers-Size-3-168-Ct/359831938

[4] http://www.thepeoplehistory.com/1950fashions.html

[5] https://www.menswearhouse.com/p/calvin-klein-x-fit-blue-windowpane-slim-fit-suit-separates-coat-3UKM3UKN61

[6] https://www.chicagotribune.com/lifestyles/holiday/ct-thanksgiving-ads-htmlstory.html

[7] https://www.couponingtodisney.com/couponing-kroger-10-112/

[8] https://www.tasteofhome.com/article/heres-the-price-of-milk-the-year-you-were-born

[9] https://www.ams.usda.gov/sites/default/files/media/RetailMilkPrices.pdf

[10] https://www.mentalfloss.com/article/62573/what-hamburgers-and-milkshakes-cost-mcdonalds-1955

[11] https://www.fastfoodmenuprices.com/mcdonalds-prices/

[12] https://paleofuture.gizmodo.com/air-travel-today-is-a-damn-bargain-951705216

[13] https://www.kayak.com/flight-routes/Chicago-CHI/Phoenix-Sky-Harbor-Intl-PHX

[14] https://www.energy.gov/eere/vehicles/fact-741-august-20-2012-historical-gasoline-prices-1929-2011

[15] https://www.globalpetrolprices.com/USA/gasoline_prices/

[16] http://www.thepeoplehistory.com/50scars.html

[17] https://www.edmunds.com/toyota/camry/

[18] https://en.wikipedia.org/wiki/Chevrolet_Corvette_(C1)#1955

[19] https://www.caranddriver.com/news/a28699755/2020-chevy-corvette-pricing/

[20] https://finance.yahoo.com/news/cost-movie-ticket-were-born-155153039.html

[21] https://www.thewrap.com/movie-ticket-prices-rose-by-3-7-in-fourth-quarter-2019/

[22] http://www.thepeoplehistory.com/50selectrical.html

[23] https://www.homedepot.com/p/Whirlpool-25-cu-ft-Side-by-Side-Refrigerator-in-Fingerprint-Resistant-Stainless-Steel-WRS325SDHZ/302785353

[24] http://www.improvementcenter.com/advice/lumber-still-cheap-after-60-years.html

[25] http://www.thepeoplehistory.com/50sfurniture.html

[26] https://www.ikea.com/us/en/p/groenlid-sofa-inseros-white-s89254791/

[27] https://www.curbed.com/2018/4/10/17219786/buying-a-house-mortgage-government-gi-bill

[28] https://www.realtor.com/research/march-2020-data/

[29] https://extension2.missouri.edu/g404

[30] https://ny.curbed.com/2013/11/21/10172014/what-would-50-in-1940-rent-a-new-yorker-today

[31] https://www.millersamuel.com/change-is-constant-100-years-of-new-york-real-estate/

[32] https://onwisconsin.uwalumni.com/features/the-price-is-right/

[33] https://financialaid.wisc.edu/cost-of-attendance/

[34] https://archives.upenn.edu/exhibits/penn-history/tuition/tuition-1950-1959

[35] https://www.cryo-cell.com/blog/april-2017/when-childbirth-cost-100-dollars

[36] https://www.businessinsider.com/how-much-does-it-cost-to-have-a-baby-2018-4

[37] https://www.ssa.gov/policy/docs/ssb/v32n1/v32n1p3.pdf

[38] https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsHistorical