What Money Meant in 1960s America: The Shocking Truth About Prices & Purchasing Power

The complete truth about what money meant in 1960s America—and why everything feels more expensive today. When gas cost 31 cents, a new house was $12,700, and minimum wage was $1/hour, what could Americans actually afford?

This deep dive reveals the shocking reality: some things are CHEAPER today (food, clothing), some cost about the same (gas), and some are devastatingly more expensive (housing 3x, healthcare 10x, education 4x more after inflation).

Discover why a single income could buy a house in the 1960s but two incomes barely cover rent today, and what really happened to the American Dream.

🕐 TIMESTAMPS:

0:00 - Introduction: The $5 Grocery Trip That Bought a Week of Food
2:30 - What Things Actually Cost (Food, Gas, Entertainment)
12:00 - What People Earned (Wages, Salaries, and the Minimum Wage)
22:00 - The Big Three: Houses, Cars, and College
32:00 - What's Different About Money Today
40:00 - Conclusion: Understanding the Economic Squeeze

💰 1960s PRICES REVEALED:
• Gasoline: 31¢/gallon ($3.39 today)
• Milk: 49-52¢/gallon ($5.70 today)
• Bread: 22¢/loaf ($2.40 today)
• Eggs: 57¢/dozen ($6.24 today)
• Ground beef: 63¢/lb ($6.90 today)
• Movie ticket: 69¢ ($7.55 today)
• New car: $2,600 ($28,500 today)
• New house: $12,700 ($139,000 today)
• College tuition (public, annual): $575 ($6,300 today)
• Minimum wage: $1.00/hour ($10.95 today)
• Median family income: $5,600/year ($61,300 today)

📊 THE SHOCKING TRUTH: After adjusting for inflation...
✓ Many foods are CHEAPER today
✓ Gas costs about the same
✓ Consumer electronics are dramatically cheaper
✗ Housing costs 3X MORE (median home: $420K vs $139K adjusted)
✗ Healthcare costs 10X MORE ($13K/year vs $1,356 adjusted)
✗ Education costs 4X MORE ($27K/year vs $6,300 adjusted)

🏠 WHY HOUSES FEEL IMPOSSIBLE:
• 1960: Median home = 2.3x median income
• Today: Median home = 5.6x median income
• 1960: First-time buyers were in their early 20s with ONE income
• Today: First-time buyers average age 36 with TWO incomes

💡 KEY INSIGHTS:
• The minimum wage today ($7.25) is LOWER than 1960 adjusted for inflation ($10.95)
• In 1960, 38% of married women worked; today it's 69%
• CEO pay was 20x average worker in 1960; today it's 300x+
• Americans saved 10-12% of income in 1960s; today it's 5-8%
• Student loan debt was nearly zero in 1960; today it's $1.7 trillion

📖 SOURCES: This video uses official data from the U.S. Bureau of Labor Statistics, U.S. Census Bureau, Consumer Price Index, and Department of Labor wage surveys. All inflation calculations use official CPI data. $1 in 1960 = $10.95 in 2025 dollars.