In my post last week which pooh-poohed the alarm about relative salaries, I took a couple of wild-ass guesses as to the “disparities” between the 1940s to the 2020s. I did confess that the numbers were made up — I was trying to make a point that whereas everyday life was affordable back then, even on a modest salary, it certainly isn’t today, at almost any non-Bezos salary.
Helpful Reader Alex S. has some thoughts, and some analysis:
Basket Comparison: 1940 vs 2025 (USA Averages; all values in USD; % shows increase from 1940 to 2025)
College Tuition (public, annual) | $150 | $11,000 | 7233%
Notes on Sources and Assumptions
Groceries: Based on USDA food plans and CPI data.
Gasoline: 1940 was ~$0.18/gal; 2025 national average is around $3.70/gal.
Electricity: National average per kWh, adjusted to residential use.
Apartment Rent: 1940 rent: BLS; 2025 rent: Zillow/National Rent Index.
Housing Cost per Sq.Ft: Includes median new home sales prices.
Bourbon: Average shelf bourbon adjusted for inflation and brand quality parity.
Automobile: 1940 was full-size sedans like Buick; 2025 equivalent is a full-size SUV or sedan (e.g., Chevy Tahoe or Toyota Avalon).
College Tuition: In-state tuition at public universities (e.g., UCLA, UGA, etc.).
Now to be fair, one should probably index the dollars to a fixed year, e.g. 1985 (the most common index in comparisons of this nature), but the point is still very valid.
And it sucks.
“….everyday life was affordable back then, even on a modest salary, it certainly isn’t today…”
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Add to that that people’s priorities have changed. In light of the numbers Alex has posted, why in the world would anybody regularly pay $6 for a cup of java?
$1200 for a month of groceries? Please.
The gov’t criminal behavior is behind the massive inflation and as long as that continues the average person is going to have to be continuously smarter and adaptive.
My greatest regret, besides not having more kids when I was younger, is not becoming self employed until I was 30. I wish I had done so when I got out of the army at age 23. Taking 100% control of your life and your finances is the only way to get ahead in this life.
Yes, it would be very informative if said prices and the concomitant salaries were indexed to the same year. That would provide a much better comparison.
It also is a way to control anyone below a certain age who thinks they have “fuck you” money. Gotta keep the peons out there hoeing beets. Same reason there’s an inheritance & property tax, to keep generational wealth from accumulating and allowing normies to opt-out of the system. You never truly own anything, or shield yourself from The Man.