The Cost of Stuff in 1980: A Comparison with Today

An interesting debate has been swirling around the cost of living in the past compared to the present. While some argue that things were much cheaper back in 1980, others contend that inflation-adjusted prices have largely remained the same or even increased. In this article, we will explore the different costs of various items and services in 1980 compared to today, taking into account the impact of inflation.

Back in 1980

Let's start with some of the most well-known items from 1980 and compare their costs to today, adjusted for inflation:

Gasoline: In 1980, the average cost of gasoline in the US was around $0.85 per gallon. Today, it is around $3.50 per gallon. Cellphones: In 1980, cellphones didn't even exist; the first commercial mobile phones were only introduced in the early 1980s. Today, a decent smartphone can cost upwards of $1,000 or more. Laptops: The first portable laptop computers were introduced in the 1980s, but they were very expensive. A typical portable laptop in 1980 could cost around $4,000, while a modern laptop starts around $300 and can go up to $2,000 for a high-end model. Bananas: In 1980, a bunch of bananas cost around $0.90, which is about the same as today's price of $0.80. WiFi: There was no WiFi in 1980. Today, the cost of a high-speed internet connection is around $50 to $100 per month, depending on your service provider. Cigarettes: A pack of cigarettes in 1980 cost around $1.00. Today, it is around $6.00. Smartwatches: Smartwatches did not exist in 1980. Today, a basic smartwatch can cost around $100 to $200, whereas a high-end model can be over $500. Dozen Eggs: A dozen eggs in 1980 cost around $1.00, similar to today's price of $1.50. Loaf of Bread: A loaf of bread in 1980 cost around $0.25, which is approximately the same as today's price of $0.50. A Three Bedroom House: In 1980, the average cost of a three-bedroom house in the US was around $75,000. Today, the cost is around $300,000 to $400,000 on average. A Gallon of Almond Milk: In 1980, almond milk was not a widely available product, but if it were, it would likely cost around $2. Today, it is around $5 per gallon. Avocado Toast: Avocado toast didn't exist in 1980. Today, a good avocado toast at a trendy cafe might cost around $8. Starbucks: A cup of coffee at Starbucks in 1980 would have cost around $0.50. Today, it is around $3.50 to $5.00. Big Mac: A Big Mac in 1980 cost around $0.49. Today, it is around $5.19. Annual Physical: An annual physical in 1980 would have cost around $50. Today, it is around $250 to $300. Hour with a Shrink: An hour with a psychiatrist or psychologist in 1980 might have cost around $50. Today, it is around $200 to $300. Tap Beer: A tap beer in 1980 would have cost around $1. Today, it is around $3 to $4. Babysitter for a Three-Year-Old: A babysitter in 1980 might have cost around $5 an hour. Today, it is around $20 to $25 an hour.

The Argument Against

People argue that despite these prices, the quality of life has improved significantly. Here's why some items might not have actual cost increases, but inflation-adjusted prices look higher:

Smartphones: A basic cell phone in 1980, while non-existent, would be equivalent to our technology today. Modern smartphones offer far more functionality and are less expensive in terms of what they can do. Laptops: Similarly, portable laptops in 1980 were significantly more expensive and less capable than today's devices. WiFi: The concept of internet connectivity at home simply did not exist in 1980. Today, a high-speed internet connection is a basic necessity. Healthcare: While healthcare has become more expensive, some argue that the quality of care has improved, decreasing the overall cost of basic healthcare services. Education: The cost of education has increased, but the value and quality of education have also improved.

The Savers' Dilemma

One significant argument against the idea that everything is cheaper now is the impact of inflation on savings. Here's why it matters:

Savers' Disadvantage: In 1980, $10,000 was a substantial amount of money. Today, $10,000 is not considered a large savings. Retirement Funds: For those who saved consistently, inflation has eaten away at the real value of their retirement funds, making it harder to maintain a comfortable lifestyle. Fixed Income: Retirees living on fixed incomes have seen their purchasing power diminish significantly due to inflation.

Conclusion

The idea that everything in 1980 was cheaper than it is now is a bit misleading. While some items and services have remained relatively stable in real terms, they have expanded in functionality and value. Inflation has drastically altered the purchasing power of money, which is most evident for savers and those living on fixed incomes. However, it's crucial to consider the broader context of quality improvements and increased accessibility that have come with time.