I live in the past about the value of a dollar

[I earned it]

I often pull $40 out of my wallet thinking that'll cover the grocery bill. It usually covers about half the real cost.

I was sent to get grated cheese, I plucked a $20 bill from my wallet and took a quick walk to get it, the bride was finishing up a dish that required it. Knowing she was waiting for it I did not waste time browsing, I did pick up a chocolate cake, and some half and half. It was $19.83 . I was shocked , I almost took only a $10 with me.

 

[NW-Bound]

It was 1976 when I was getting 2.10. Like I said it was the youth minimum wage I think the regular minimum wage was 2.40, but I'm not positive

I keep thinking I got $1.10 an hour at my first McD's job (I was 17).
This table says I should have been making $1.25.
Minimum Wage - Wage and Hour Division (WHD) - U.S. Department of Labor

Yes, now it comes back to me. Minimum wage was $2.10 when I was doing menial work while in college in the mid 70s. I never did any fast food job though.

 

[UpAnchor]

But remember this: 50 years ago, a decent TV cost about $400 (still does)

I wouldn't know. In my boyhood home, a "decent" TV would have been one that didn't feature a coat-hanger as an antenna and pair of vice-grips permanently affixed to the tuner shaft as a channel selector, replacing the long since broken knob. As I recall though, it wasn't all that much of a handicap given that we only had 3 channels in our area. A couple of clicks to the left, a couple to the right, or just stay put.

 

[Andre1969]

I wouldn't know. In my boyhood home, a "decent" TV would have been one that didn't feature a coat-hanger as an antenna and pair of vice-grips permanently affixed to the tuner shaft as a channel selector, replacing the long since broken knob. As I recall though, it wasn't all that much of a handicap given that we only had 3 channels in our area. A couple of clicks to the left, a couple to the right, or just stay put.

Dunno about 50 years ago, but I know my grandparents bought a new 25" Zenith console in 1972, and it was about $700. It didn't have a remote, or stereo speakers, but was made out of (mostly) real wood, and had a slate (or a reasonable facsimile) top. Adjusting for inflation, it would be about $4,000 today!

We were kinda lucky too, living close enough to DC and Baltimore to get most of the stations. I remember the "highest" station was 54, which played old tv sitcoms and such during the day but then would switch over to "Super TV" at night, which you needed a de-scrambler for.

The UHF dial went up to 83, but most of it was empty static. I remember thinking how wonderful it would be when one day, all those empty channels were filled with programming, how much variety there would be!

Well, nowadays, I think the FIOS tuner goes up to 9999, and most of the time I swear there's STILL nothing on tv...

 

[RetireAge50]

Love this thread, cracks me up. Money becomes worthless over time no doubt about it (regardless of all the nonsense talk about deflation).

 

[I earned it]

Yeah that's what I was thinking

Love this thread, cracks me up. Money becomes worthless over time no doubt about it (regardless of all the nonsense talk about deflation).

That's why I started this thread, I'm glad I'm not alone . And as far as the tv with tinfoil antenna , I had a friend who had to stand next to the tv when I think all in the family was on in case it got snowy , his dad didn't want to miss a bit of it, we used to go to his apt and wait in the kitchen for the half hour to end and we would hope the picture got fuzzy his dad would go into a rage . It was funny then now I'm crying while I type this, way too funny. Hid dad drove a truck, my friend is now a very wealthy dentist, how time flies

 

[Nodak]

My first job in 1959 as the projectionist in the local theater at the age of 12 paid 75 cents per hour; that was minimum wage.

 

[Mulligan]

Love this thread, cracks me up. Money becomes worthless over time no doubt about it (regardless of all the nonsense talk about deflation).

This past month a nearby restaurant celebrated its anniversary for a few weeks by having the menu set at its 1975 prices. The menu was more limited than the regular one, but it still sure made for a nice cheap evening meal.


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[UpAnchor]

This past month a nearby restaurant celebrated its anniversary for a few weeks by having the menu set at its 1975 prices. The menu was more limited than the regular one, but it still sure made for a nice cheap evening meal.

DW and I ran into something similar a number of years back. We were visiting another city for a couple of days, heard about a local restaurant doing the "price rollback" thing and figured why not take advantage. I can't remember if it applied to everything on the dinner menu or just specific entrees. But I do recall they knew better than to include the wine list!

 

[RetireAge50]

This past month a nearby restaurant celebrated its anniversary for a few weeks by having the menu set at its 1975 prices. The menu was more limited than the regular one, but it still sure made for a nice cheap evening meal.


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That is cool. Love those deals. I wish they would set college and wedding prices back. And house prices. And steak prices. And skiing prices. And take your wife on weekend getaway prices. Starting salary at Microsoft is $110,000. Makes my portfolio practically worthless. Lol Inflation is the real killer. I have no clue what the impact will be over my maybe 50 year retirement.

 

[Mulligan]

DW and I ran into something similar a number of years back. We were visiting another city for a couple of days, heard about a local restaurant doing the "price rollback" thing and figured why not take advantage. I can't remember if it applied to everything on the dinner menu or just specific entrees. But I do recall they knew better than to include the wine list!

Soda's for 35 cents were on the menu. But, no the wine wasn't. Imagine that! And full confession, we bought the $20 bottle of wine and it was double the cost of our food.


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[UpAnchor]

1973 we worked 22 hours a day and all we got for that was a beating before bed.... And we were darned glad too get it!
( queue up the Four Yorkshire Men )

It's about time. I've been missing those guys lately...

 

[jkern]

The official cumulative inflation from 1976 till now, a period of 39 years, is 320%. This means $1 back then is worth $4.2 now. So, the $15/hr job now is equivalent to $3.57/hr back then.

Does that seem about right? I cannot remember what minimum wage was back then, but it must be lower than $3.57.

PS. I do remember an engineering graduate making $17-19K for the first job out of school. That is equivalent to $71-80K now. That seems roughly right.

I believe the official CPI inflation might be 320%, but I believe actual inflation to be much much higher. In 1973 I had a job mopping floors at the then minimum wage of $1.65/hr. Our home was valued at about $35K. Today, that same home is $900k. The State Univ fees were about $150/yr. Today they are around $6k to $7K/yr. Twilight green fees at the local golf course were $1. Today they are $25. And I'm sure medical costs have soared too.

 

[Danmar]

Nope, my yardstick is firmly in the present. I'm 65 so certainly did experience those smaller numbers. But I have forgotten about them. Certainly know all the current prices though. My in laws seem stuck in the 50's (maybe earlier?) Always complaining about current prices, and they are quite well off. Very tiring.

 

[Walt34]

Lol Inflation is the real killer. I have no clue what the impact will be over my maybe 50 year retirement.

Before I retired I remember playing around with Quicken's retirement calculator and found that if I lived to be 90 at 4% inflation my retirement income would be ~$250k! Wow!

Then reality set in and I realized that a package of hot dog buns would be ~$25.

 

[RetireAge50]

Recently family went out for burgers and fries total cost $50. I need to either get a handle on inflation or stay at home for the rest of my life.

 

[jazz4cash]

If, like most people on this site, you worked in a cushy office job for most of your career, I think you would very much dislike working in a fast food restaurant. Working in fast food would require you to do actual work. You would be tired and sore all the time, not to mention you would smell(sweat and grease). My body hurts just watching the 20 year olds running around in back. I couldn't imagine a retiree trying to do that job.

We have quite a few fast food workers in the hi COL area where I live that are 55 and up. I've noticed them more and more as I approached ER (hoping that would not be my fate). You can easily tell the ones that do it for extra money from the ones that do it out of necessity.



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[jazz4cash]

Recently family went out for burgers and fries total cost $50. I need to either get a handle on inflation or stay at home for the rest of my life.

....or get some of those coupons. We get them in the mail a lot. I am trying to eat healthier now that I have more time to shop and cook.


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[clobber]

Very interesting discussion. I have an additional perception problem in that I have been out of the U.S. for a while. Even though I frequently return, prices (in my head) are frozen in time based on when I departed in the mid-90's. Coke out of a machine is still 50 cents right?

Clearly the purchasing power of the dollar has declined over time. A good chart is here. It basically says that a dollar in 1913 was worth a nickel in 2013.

But does that really matter? Isn't it really purchasing power - or real wage - that we care about? If you were making $2 minimum wage in the mid 70s and could buy 5 loaves of bread with it, how many loaves can you buy with the $15 today? This is a great interactive graph of the real minimum wage. It largely says that even though the minimum wage went from $.25 in 1938 to $7.25 in 2015, purchase power has actually nearly doubled (roughly $4 to $8ish).

However, if you compare the 1950s to 1980s vs today, the purchasing power has declined. Most people in this forum are looking at that period. Your mid 20th century dollars bought you more back then.

 

[Mulligan]

I believe the official CPI inflation might be 320%, but I believe actual inflation to be much much higher. In 1973 I had a job mopping floors at the then minimum wage of $1.65/hr. Our home was valued at about $35K. Today, that same home is $900k. The State Univ fees were about $150/yr. Today they are around $6k to $7K/yr. Twilight green fees at the local golf course were $1. Today they are $25. And I'm sure medical costs have soared too.

I checked your bio Jkern and I was correct. I was thinking "he doesnt live in flyover country" and was proved correct. I bet inflation in some things has been worse in California than MO. My dad built a new house in 1973 for $16,000. I would guess it to be worth at tops $175,000 today. And golf I remember playing 18 holes in late 1970s for $6 for 18 holes with a pull cart. Today I can get a cart and play 18 twilight rates for $18-$20.
CNBC was listing the most expensive real estate places today, and California dominated the list. My jaw just drops at the "average home" costs.


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[cyber888]

My wife and I spend less than $60,000 a year. So for us, you are a big spender But $50K income is not big these days - more like $120K - $150K is middle class income, or what use to be equivalent to $50K 25 years ago. Well, you can still buy $1 MacDonalds burger right?

So am I a relic about money, when I ran my numbers I factored in 60,000 after tax a year, thinking I'm a big spender but 60,000 is chump change it seems.

 

[samclem]

If, like most people on this site, you worked in a cushy office job for most of your career, I think you would very much dislike working in a fast food restaurant. Working in fast food would require you to do actual work. You would be tired and sore all the time, not to mention you would smell(sweat and grease). My body hurts just watching the 20 year olds running around in back. I couldn't imagine a retiree trying to do that job.

Like many people, I worked in fast food for awhile. For the most part it is tiring, repetitive, dirty, hot, and not much fun at all even at age 18, much less 50+.
I'm always surprised when middle-age folks comment that they might just jump out of a job they dislike and take a job flipping burgers. I think they should work the grill during a typical lunch rush or spend 10 minutes cleaning out a greasy, maggot-infested floordrain in the kitchen of a burger joint before making any permanent changes. Low pay is not the same as stress-free or easy. The folks working in those jobs, and doing them well, have my respect.

 

[iac1003]

I'm so old I can't recall what my first jobs paid me but I also did a lot of babysitting as a teenager and saved up enough money to buy a Gibson steel string guitar in 1966 for about $80. Years later, living in my $165 a month apartment on the Upper West Side of Manhattan, the guitar was stolen.

I decided for my 55th birthday to buy the same guitar. I went on eBay and bought it for $500.

That apartment - a studio - now rents for around $2000 a month.


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[stepford]

My wife and I spend less than $60,000 a year. So for us, you are a big spender But $50K income is not big these days - more like $120K - $150K is middle class income, or what use to be equivalent to $50K 25 years ago. Well, you can still buy $1 MacDonalds burger right?

If it takes $150K to be middle income I might as well start laying in the supplies of cat food right now....

 

[Bamaman]

I worked my way through college ('68-'72) doing grocery store inventories on weekends and as a lifeguard at the university athletic facilities. My parents assisted with $150 a month spending money.

Tuition started at $117.50 and went up to $192.50 my last semester. We'd buy Sterling Big Mouth bottles of beer at Walgreens for $.99 per six pack. 2 pieces of fried chicken, fries and ice tea for $1.00. Plate lunches were $1.35-$1.50. A really nice apartment was $135.

And we could actually get our degree without student loans.

My wife and I continue to live a very frugal life--eating out only 1x per week. Living conservatively allows us to be perpetual world travelers in our retirement.