Cosst Of Living Comparisons

Cost of Living in the 1950's as Compared to Today in 2011 | Yes, I ...

The 1950s were a time of great prosperity and economic growth in the United States. Today, looking at the decade objectively, we realize it wasn’t quite the post-war utopia portrayed in the media of the day or the nostalgic recreations since. Nonetheless, many look back fondly on what they view as a simpler time. One thing a lot of folks envy from that time is the cost of living. Everything in 2011 seems so much more expensive. Of course, no one in today’s world expects to pay 18 cents for a gallon of gas, $25 for a man’s suit, or $1,500 for a brand new car[1]. Still, paychecks just don’t seem to go as far now as they did then. Or do they?

Many Factors to Consider

When you compare the cost of living in the 1950s with today’s cost of living, you have to consider a variety of factors. For example, some things are actually cheaper to produce now than they were in the 1950s.  Of course, most of today’s goods and services come with higher price tag, but people also get paid proportionately more.

Household Income Then and Now

In 1955, the median household income in the U.S. was around $5,000[2]. That means half of all households earned more than $5,000, while half brought in less. Adjusted for inflation, that translates to around $25,000 today. However, today’s median household income is just over $40,000. We’re not really making that much more money though. That $15,000 difference can be attributed, in large part, to the increase in the number of two-income households since the middle of the twentieth century [3]. The big difference between expenses then and now is the amount of stuff we buy. We also tend to live in much bigger houses.

Average Home Size 1950 vs. Today

The average size of a new house in 1950 was 983 square feet. In 2004 it stood at 2,349 square feet [4]. At the same time, family size went from about 3.5 persons per household, to around 2.5 today [5]. A bigger house incurs more costs, even with fewer people living there.

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