Despite what feels like the constantly rising costs of modern life, the prices of some essential commodities such as gas and eggs have actually remained relatively stable compared to dollar values and wages in the past. Other items, meanwhile, have actually become much cheaper over time, even when accounting for inflation. Innovations in technology, increased competition, and improvements in manufacturing and logistics are most often the reason for these surprising price drops. Here are seven everyday items that are much cheaper now than they were in decades past.
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 are lower and production output is 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 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 out as a luxury item. Bananas first became available in the U.S. following the Civil War. At the time, they sold for about 10 cents a piece — that’s about $3 per banana today.
The price of the tropical 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 ripen at the same time. That helps keep production and shipping efficient, and the cost to consumers low.
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Televisions
It’s no surprise that as technology improves and becomes more efficient, prices come down. But 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. This “post-purchase monetization” often results in targeted ads on smart TVs, and while it may offer affordable TV prices and accurate targeted viewing recommendations, the feature can be disabled for a more anonymous viewing experience.
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 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 $300 and takes about six hours. And an average domestic round-trip airfare is about $400 in the U.S.
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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. That’s a happy trend, lest we have to wash our increased amount of clothing by hand.
Although it may not feel like the case to modern parents, toys are cheaper — and more plentiful — today than in decades past. The U.S. Bureau of Labor Statistics shows significant deflation on toys over the past 30 years, a trend primarily resulting from increased reliance on inexpensive overseas production and more competition both from toy brands and from 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.
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, it wasn’t always easy to extract from its ore. 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 commonly used in everyday aluminum cans.
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Author Mark DeJoy
April 24, 2024
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The baby boom was a global increase in the number of births in the years following the end of World War II. In the United States, the time frame is generally defined as between 1946 and 1964, when around 76 million people were born. It coincided with a period of economic prosperity that also saw a boom in home ownership. Census data shows that 43.6% of Americans owned a home in 1940; by 1960, that number rose to 61.9%, an increase of more than 18%. We took a look at the average cost of a house during this boom time, using data from the U.S. Census Bureau and inflation calculations from the U.S. Department of Labor’s Consumer Price Index.
At the onset of the baby boom, the housing stock was still in a state of stagnation due to the wartime conservation of building materials. As a result, in 1947, 6 million households saw families sharing living space with extended relatives, and approximately 500,000 households were living in make-do spaces such as detached garages, trailers, or otherwise temporary housing. But a few key programs reshaped the housing market: the Servicemen’s Readjustment Act (better known as the GI Bill), Veterans Administration (VA) home loans, and the already-established Federal Housing Authority (FHA).
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In the prewar era, mortgages were commonly structured as “balloon loans,” which were relatively short-term loans (five to seven years, on average) with a substantial down payment (normally 20% to 50%). The VA and FHA programs flipped the convention to long-term loans with low down payments. The ability to spend less up front and pay back the loan over 25 to 30 years significantly eased the barrier to home ownership for many Americans, though not everyone: The practice of redlining meant that a vast majority of Black veterans were shut out from receiving home loans.
In 1950, some 1.53 million new homes were built, and VA and FHA loans comprised 51% of buyers. Another 2.4 million new homes were started between 1953 and 1957, using a total of $3.6 billion in loans. According to U.S. Census data, the national median price of a single-family detached home in 1950 was $7,354. That equates to $97,740 in today’s money, though it’s worth pointing out that the average house in 1950 was much smaller: 983 square feet and an average of 4.6 total rooms, as opposed to 2.264 square feet and seven to eight rooms today. The average family income was $3,300, the equivalent of $43,859 today, which goes to show how much the housing market has outpaced regular inflation in the 21st century: Though the value of the average home in 1950 equates to $97,740 today, data from 2018 to 2022 shows the modern-day median home value is almost triple that, at $281,900. The price of a home in 1950 was approximately double the median household income; considering today’s median household income of $74,755, the price of a home is now nearly four times the median household income.
The development of the Interstate Highway System with the Federal Aid Highway Act of 1956 made the areas surrounding cities more easily accessible than ever before. This, along with the wide availability of empty land for developers to build on, and the Home Owners’ Loan Corporation discouraging mortgage lending for central urban properties by identifying those areas as “hazardous,” contributed to the creation of the suburbs as we know them. By 1960, 15 million U.S. homes were under construction, and 75% of them were in suburban areas.
The median single-family home size in 1960 rose to 1,500 square feet and gradually increased throughout the decade to just under 2,000 square feet. The median number of rooms increased from the 1950s average of 4.6 to six rooms in the 1960s, and that number held steady throughout the decade. It’s tempting to attribute the increased home size to the space that was available in the suburbs, but the numbers don’t exactly bear out that explanation: The median lot size throughout the 1950s and ’60s was steady at just over .20 acres, and it didn’t significantly increase until the 1970s.
As home sizes increased, so too did home prices: In 1960, the median value of a single-family detached home was $11,900 — that’s $126,852 today. However, the median family income kept pace, increasing to $5,600 ($59,695 today), so the median annual family income still comprised approximately half the cost of a home. The least expensive state for home ownership was Arkansas, with a median home value of $6,700, while the most expensive state was Hawaii, with a median home value of $20,900 — or $71,4210 and $222,790 today, respectively.
In a world inundated with ads, it’s rare for one to become an indelible part of the cultural landscape. As modern advertising evolved from its 17th-century print origins, it grew into an art form that entrenched itself in popular culture and changed the relationship between company and consumer. Yet amid the sea of print ads, commercials, and social media campaigns that have launched over the years, a few outliers have managed to stand out from the crowd, lodging themselves in the collective consciousness and successfully changing the conversation. These five iconic ads are generally considered among the most successful ad campaigns of all time.
In 1988, the advertising agency Wieden+Kennedy debuted the “Just Do It” campaign, and catapulted Nike into the realm of cultural iconicism. Written by agency co-founder Dan Wieden, the slogan debuted in a TV spot for what was then a relatively small sportswear company. The empowering catchphrase was intentionally open-ended, and sought to capitalize on the decade’s enthusiasm for self-determinization and personal achievement. The idea for those three little words has a darker origin, however. The phrase was adapted from the last words uttered by convicted killer Gary Gilmore, who, shortly before his execution by firing squad, said, “Let’s do it.” Wieden and his collaborators swapped out a word, and the rest is history.
In response to reports of flagging milk sales, ad agency Goodby, Silverstein & Partners held an unconventional focus group. Participants were asked to not consume any milk for a week before convening, and the respondents reported frustration at the absence of the beverage. This inspired an advertising angle that differed from most 1980s campaigns that had focused on dairy’s health benefits. Instead, “Got Milk?” hinged on how people tend not to think about milk at all until they need it and it isn’t there. The first TV commercial, directed by Michael Bay, premiered in 1993. Two years later, Naomi Campbell starred in the first celebrity-fronted “Got Milk?” print ad, sporting the now-iconic milk mustache.
Considered one of the best advertisements of the 20th century, Volkswagen’s “Think Small” ad changed the game by injecting humor and self-awareness into advertising. Developed by DDB (Doyle, Dane, Bernbach) art director Helmut Krone and copywriter Julian Koenig, the print ad was released in 1959 and was the first to shirk the ad industry’s emphasis on mass consumerism. With a focus on the vehicle’s utility and the brand’s acknowledgment of its aesthetic shortcomings, the campaign was a welcome departure from traditional sensationalist car ads. It also marked the start of the ad industry’s creative revolution, ushering in the golden age of advertising (an era beautifully depicted in the 2007 television series Mad Men).
Before the 1930s, diamond engagement rings were reserved for the wealthy. Then in 1938, the ad agency N.W. Ayer was enlisted by De Beers heir Harry Oppenheimer to rebrand the jewel as something worth splurging for. Copywriter Frances Gerety succeeded when she coined the slogan “A Diamond Is Forever” in 1947. The ad likened the diamond to the permanence of marriage and made the ring an engagement staple, effectively increasing demand for the precious gem. The campaign was launched nationally before expanding worldwide, and was so successful that in 1999, Ad Age magazine named it the No. 1 slogan of the century.
Dove debuted the “Campaign for Real Beauty” in 2004 as a challenge to traditional beauty advertising. The ad was launched in response to the results of “The Real Truth About Beauty: A Global Report.” The company’s emphasis on diversity stemmed from the report’s findings: Only 2% of women polled described themselves as “beautiful,” yet 80% of participants agreed that all women have something beautiful about them. Led by Joah Santos of the ad agency Ogilvy & Mather, the campaign began as a series of billboards before expanding to TV slots featuring copy such as, “Wrinkled or Wonderful?” and “Grey or Gorgeous?” The shift in narrative made its mark, and within six months, sales of Dove products rose 700%.
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Old Spice: “The Man Your Man Could Smell Like”
A simple statistic inspired the launch of Old Spice’s 2010 “Smell Like a Man” campaign. Wieden+Kennedy learned that 60% of all body wash purchases were made by women, so creative directors Eric Baldwin and Jason Bagley came up with a campaign that appealed directly to them. Enlisting actor Isaiah Mustafa to embody the man “yours” could be, the campaign featured a shirtless hunk addressing the camera directly while navigating a variety of over-the-top situations. Shot in one take and with social media traction in mind, the ads quickly went viral and parlayed Old Spice from a baby boomer relic to a must-have for the 18-to-34 age demographic.
When the credit card was introduced in 1950, the American public was already well acquainted with buying on credit, through personal loans and store credit accounts. But the introduction of the Diners Club card, the first modern charge card, made spending even more convenient: Customers could use their club cards at a variety of restaurants, and pay the balance at the end of the month. A cashless approach to consumption began.
By the end of the ’50s, most Americans had embraced the concept of buying now and paying later. In 1958, the Bank of America in California launched the BankAmericard, the first general-purpose credit card that could be used wherever it was accepted. It also introduced a key feature of modern credit cards: Unlike with the Diners Club card, customers could carry a balance into the following month, provided they paid the amount of interest accumulated. By 1966, the practice had become commonplace as more states licensed the BankAmericard, which was rebranded as Visa in 1970. Here are five fascinating facts about the history of credit cards.
Women Couldn’t Have Their Own Credit Cards Until 1974
As late as the mid-1970s, women were put through a demeaning gauntlet when applying for a credit card. Married women were only issued cards under their husband’s name, and single women needed a male family member to act as co-signer. Even if a woman was able to make payments on her sole income, she could still be denied credit, effectively crippling her financial prospects. In a major step toward gender equality, the Supreme Court ruled in 1971 that assigning more financial power to men than women simply on the basis of sex was unconstitutional, violating the Equal Protection Clause of the 14th Amendment. The case laid the groundwork for the Equal Credit Opportunity Act passed in 1974, which stated that people could not be denied credit based on gender, religion, or race.
The Credit Card Was Invented After a Man Forgot His Wallet
In 1949, a New York businessman named Frank McNamara forgot his wallet at dinner and needed his wife to settle their bill. Vowing never to suffer such embarrassment again, McNamara teamed up with partner Ralph Schneider to create a membership card that allowed restaurant guests to settle their bills monthly instead of carrying cash. The card was small and made of cardboard, and charged participating restaurants a 5% to 7% processing fee. Within a year, the Diners Club card accumulated around 42,000 users across the United States, proving credit cards were here to stay.
The BankAmericard Lost Millions of Dollars at First
In September 1958, the Bank of America surprised residents of Fresno, California, by mailing out 60,000 unsolicited BankAmericards. The launch was spearheaded by manager Joe Williams. With no research behind him, he determined that credit limits would arbitrarily range from $300 to $500, with “floor limits” (smaller purchases that didn’t necessitate retailers phoning the bank) ranging from $25 to $100. He also assumed that most customers would pay back their loans on time, which was incorrect: In its first year, and after mailing an additional 20 million cards across California, BankAmericard lost millions of dollars, and Williams resigned. Perhaps unsurprisingly, the easily stolen mail-outs soon led to another financial phenomenon: credit card fraud.
Magnetic storage, a technology that uses magnetized materials to store data, was developed in the 1930s and improved over the coming decades as a way to store programs and information in early computers. In 1960, IBM engineer Forrest Parry used the technology to melt magnetic tape onto ID cards for CIA officials, which contained agent information. Jerome Svigals, a project manager at IBM, refined the technique and applied it to credit cards. The card’s magnetic stripe could store user information, banking data, and purchase history, making it easier to detect and prevent credit card fraud. In 1970, “magstripe” cards were introduced to the public through a collaboration between American Express, American Airlines, and IBM.
American Express pioneered two features that are commonplace in credit cards today. The bank launched its first credit card in 1958, and the following year it became the first major company to use plastic cards instead of cardboard. Decades later in 1991, Amex became the first credit card to reward its customers, launching Membership Miles, a frequent-flyer program. Every dollar spent earned a point toward travel and accommodations at a small number of airlines and hotels. The program also incentivized users: While all American Express members were privy to the program, only Gold and Platinum card members received additional perks.
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Author Nicole Villeneuve
September 21, 2023
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The United States may not have a royal family, but it has a number of influential family dynasties that have intrigued the public for centuries. Two families in particular, the Vanderbilts and the Rockefellers, are household names whose self-made fortunes made them two of the richest and most powerful American families in history. The Vanderbilts, led by Cornelius Vanderbilt’s railroad empire, amassed staggering wealth during the Gilded Age in the late 19th century. The Rockefellers, meanwhile, propelled by John D. Rockefeller’s dominance of the oil industry, made a large impact with their philanthropy and preservation. Although their ascendence is similar, their legacies ended up looking a little bit different in the end.
Rockefeller and Vanderbilt’s massive business ventures not only amassed them unprecedented personal wealth, but boosted the country’s industrial economy. At the same time, their reputations as “robber barons” emerged, amid criticisms that their successes came at the expense of fair competition, workers’ rights, and ethical standards. At the time, many Americans were living in poverty, a stark contrast to the glitzy guise of the Gilded Age that these wealthy families propped up.
John D. Rockefeller Was America’s First Billionaire
A century before Bill Gates and Jeff Bezos, there was John D. Rockefeller. When he was just 12 years old in rural New York, Rockefeller loaned a neighbor $50 of his own hard-earned money. When he received it back the next year with interest, he decided at that moment to let his money work for him instead of the other way around. This foresight and financial acumen lasted him a lifetime, helping him shape the landscape of American business and become the country’s first billionaire.
Trained and working as a bookkeeper by 16 years old, Rockefeller started his own company in agricultural trade within a few years. Through that business, he decided that the true future of industry was in moving raw materials, and at 24 years old, he moved into the oil business. Rockefeller went on to pioneer the American oil industry by founding Standard Oil (later dissolved into Exxon, Chevron, and more). Although his business practices faced their fair share of accusations and criticisms over the years — including colluding to control the price of oil and creating a monopoly by buying competing refineries — Rockefeller amassed an unprecedented $1.4 billion net worth by the time of his death in 1937 (almost $30 billion today). As much as he made, he gave plenty away, too — his philanthropic gifts over the years totaled $530 million.
He’s a towering figure in American business history, but Cornelius Vanderbilt had little formal education. Born the fourth of nine children in Staten Island, New York, in 1794, Vanderbilt was pulled out of school to work on his father’s shipping boat when he was just 11 years old. By the time he was 16, “the Commodore,” as he became known, had bought his own boat to ferry cargo around the New York Harbor. He got a job in the steamship industry and eventually went into business for himself.
Vanderbilt’s aggressive professional approach helped him accrue wealth quickly, and in the 1840s, he built the first of many large homes the family owned in New York (and elsewhere). When the California gold rush struck, Vanderbilt saw an opportunity: He launched a shorter steamship route from New York to San Francisco than had previously existed. It was an instant success, earning more than $1 million in one year (that’s almost $40 million today). Around this time, Vanderbilt also began to manage the railroads that connected textile mills on the East Coast to shipping ports. The shipping tycoon with no formal education also became a railroad tycoon.
John D. Rockefeller Celebrated the Anniversary of His First Job Every Year
It was referred to as his “most joyful holiday of the year” — the anniversary of the day John D. Rockefeller got his first job. On September 26, 1855, Cleveland company Hewitt and Tuttle hired a 16-year-old Rockefeller as an assistant bookkeeper. Every September 26 from that year forward, the magnate celebrated “job day.”
“All my future seemed to hinge on that day,” Rockefeller once said. “I often tremble when I ask myself the question: What if I had not got the job?” When the business magnate was 83 years old, The New York Times reported the events of his “job day” celebrations: Festivities included a round of golf (just nine holes, lest he spend too much time on the greens), working on his philanthropic ventures, and a luncheon with friends in which he detailed his job search so many years ago. Rockefeller said that just over three months after he started the job, on New Year’s Eve in 1855, he collected his first pay: $50.
On Christmas Eve in 1895, Cornelius Vanderbilt’s grandson George Vanderbilt invited friends and family into his opulent new home for the first time. George first visited Asheville, North Carolina, in 1888. Taken by the region’s picturesque mountainous charm, he began acquiring land, eventually amassing 125,000 acres for his future estate. It took six years for the Biltmore Estate, designed by architect Richard Morris Hunt, to take its iconic form. The 250-room French Renaissance chateau — now the largest home in the United States — even required its own brick factory, woodworking shops, and railway for transporting materials during construction.
Spanning 175,000 square feet — more than 4 acres of floor space — the famous mansion includes 35 bedrooms, 43 bathrooms, and 65 fireplaces. Despite the ostentatious footprint of the estate, George was also committed to sustainable land use practices, and following his death in 1914, his wife, Edith Vanderbilt, sold 87,000 acres to the federal government, creating the Pisgah National Forest.
The Rockefellers Made Their Fortune in the Oil Industry — Then Denounced It
At its peak, Standard Oil controlled more than 90% of petroleum products in the United States. Yet in the mid-2010s, two of the Rockefeller family charities announced their plans to divest from the oil industry, walking away from the very product that made them billionaires. The companies cited concerns about the environmental impact of fossil fuels and their contribution to climate change as the reason. While the move was largely symbolic, it certainly reaped rewards. In 2020, five years after announcing the divestment, the Rockefeller Brothers Foundation — which puts approximately $15 million each year into climate change efforts — claimed its oil-free portfolio posted bigger returns than a comparable portfolio with oil holdings over the same time period.. “Oil is obviously a definitional part of my family’s past,” Valerie Rockefeller, the great-great-granddaughter of John D. Rockefeller and chair of the RBF board of trustees, said in a press release at the time. “But it has no place in our future.”
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The Vanderbilt and Rockefeller Dynasties Live on in Different Ways
Despite sharing historic and cultural space as two of the wealthiest and most powerful families in American history, the Vanderbilt and Rockefeller dynasties played out quite differently. The vast fortune — upwards of $100 million at the time of his death — built by Cornelius Vanderbilt deteriorated in subsequent generations. “When 120 of the Commodore's descendants gathered at Vanderbilt University in 1973 for the first family reunion, there was not a millionaire among them,” wrote Arthur T. Vanderbilt in Fortune's Children: The Fall of the House of Vanderbilt. Journalist Anderson Cooper, one of the most famous living Vanderbilt descendants (his mother was Gloria Vanderbilt), also detailed the lavish spending and poor planning that led to their financial fall.
In contrast, the Rockefellers’ wealth has endured. Across several generations and almost 100 descendants, the family maintains a fortune in the billions. Unlike with the Vanderbilts, careful financial planning, strategic philanthropy, and diversified investments have kept the family thriving, as has, according to the modern-day Rockefellers, a system of family values and traditions that includes family get-togethers — featuring upwards of 100 people — at least twice a year.
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