Reality Check: Were Goods Truly Cheaper 'Back in My Day,' Boomers Ask

In 1980, a gallon of gas cost $1.19. Today, the average gallon of gas is $3.75. However, that doesn't necessarily mean things were cheaper ‘back in the day.' Let's delve into the numbers and consider factors like inflation and wages. 

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Let's rewind to the 1980s, when most boomers (ages 59-77) were adults with jobs, paying their dues: 

• Gas: $1.19/gallon
• Monthly rent: $243-$432
• New car: $7,210
• New house: $68,714
• Movie ticket: $3.55
• Ground beef: $1.39/lb
• Eggs: $0.84/dozen
• Loaf of bread: $0.55
• Potatoes: $0.20/lb
• Milk: $1.59/gallon
• Big Mac Value Pack: $2.59

The average cost of these goods today: 

• Gas: $3.75/gallon
• Monthly rent: $2,120
• New car: $47,433
• New house: $393,500
• Movie ticket: $10.78
• Ground beef: $5.15/lb
• Eggs: $3.00/dozen
• Loaf of bread: $2.54
• Potatoes: $0.96/lb
• Milk: $3.86/gallon
• Big Mac meal: $9.72

Clearly, there has been significant inflation since the 1980s, with most items now costing between three and five times more than they did then. Rent and new car prices have seen the largest increases, up to eight times more in some cases. But how do wages and inflation factor into this comparison? 

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According to the Social Security Administration, the average annual salary in the 1980s was about $16,420. Today, the average national salary is around $63,795. Adjusting for inflation, $1 in 1980 would equate to about $4 today, meaning the average adult in the 1980s would have earned approximately $65,680 in today's dollars.

Using the same inflation formula, we can estimate what prices in the 1980s would be today if adjusted to the current dollar value: 

• Gas: $4.76/gallon
• Monthly rent: $972-$1728
• New car: $28,840
• New house: $274,856
• Movie ticket: $14.20
• Ground beef: $5.56/lb
• Eggs: $3.36/dozen
• Loaf of bread: $2.20
• Potatoes: $0.80/lb
• Milk: $6.36/gallon
• Big Mac Value Pack: $10.36

Looking at this, some things were definitely cheaper in the 1980s, particularly the items that so many GenZ-ers and Millenials complain about today, like rent, new cars, and new houses. However, everyday goods and groceries were comparable or even more expensive than they are today. 

So, the next time someone says, ‘Back in my day this only cost a dollar,' remember the true value of that dollar today. It probably isn't as cheap as you think it is. 

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