Are Americans as Poor as They Feel? What Americans Are Really Paying for the Things They Buy Most
For many Americans, thinking back to the days of 99¢ gas and 50¢ cups of coffee, it may be cathartic to grumble about how expensive life has become, especially during the current economic downturn. The reality, however, is that a lot of things aren't as expensive as we think—and many things actually cost less in relative terms.A look at the cost of living between 1980 and 2010 shows that nominal income rose more than overall consumer prices (nominal income is income not adjusted for inflation). The price of many day-to-day expenses such as food and even energy increased at a slower pace than overall consumer prices, which means their relative costs are lower, while some big-ticket items, such as education and health care, became more expensive, causing a shift in spending.

Three Decades of Price Changes

When you look at the price tags on consumer goods, it would seem that costs have skyrocketed over the last 30 years. If you adjust for inflation, however, the relative cost of items such as food, manufactured goods, and energy has fallen since 1980, while prices for other necessities such as housing, education, and health care have increased significantly. Moreover, consumers have taken to new services that carry bills they didn't have to pay in the 1980s: Payments for Internet access, cable TV, and cell phones together total more than $1,000 per year in bills for many Americans, according to a February report in The New York Times. Businessweek.com compared national average prices in 1980 and 2010 for 35 products and services that range from milk and bread to haircuts and doctor's visits. Comparative figures are based on numbers provided by the Council for Community and Economic Research's ACCRA Cost of Living Index, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, and other pricing-data sources.

Personal Computers

1981: $3,693 in 2009 dollars (*$1,565 in 1981 dollars)
2009: **$710
Change in real dollars: -80.8 percent

Coffee

1 lb., ground roast

1980: $8.38 in 2010 dollars ($3.18* in 1980 dollars)
2010: $3.70*
Change in real dollars: -55.9 percent

Coca-Cola

2-liter bottle

1980: $3.35 in 2010 dollars ($1.27 in 1980 dollars)
2010: $1.51
Change in real dollars: -54.9 percent

Sugar

5 lbs.

1980: $4.64 in 2010 dollars ($1.76 in 1980 dollars)
2010: $2.30
Change in real dollars: -50.4 percent

Tennis balls

Can of three

1980: $5.24 in 2010 dollars ($1.99* in 1980 dollars)
2010: $2.99*
Change in real dollars: -43 percent

Bananas

1 lb.

1980: $0.95 in 2010 dollars ($0.36 in 1980 dollars)
2010: $0.56
Change in real dollars: -41 percent

Pizza

Large pie

1980: $15.81 in 2010 dollars ($6* in 1980 dollars)
2010: $10.30
Change in real dollars: -34.9 percent

Ground beef

1 lb.

1980: $3.98 in 2010 dollars ($1.51 in 1980 dollars)
2010: $2.72
Change in real dollars: -31.7 percent

Lettuce

1 head

1980: $1.90 in 2010 dollars ($0.72 in 1980 dollars)
2010: $1.35
Change in real dollars: -28.9 percent

Milk

Half gallon

1980: 2.79 in 2010 dollars ($1.06 in 1980 dollars)
2010: $2.01
Change in real dollars: -28.1 percent

Frying chicken

Whole, per lb.

1980: $1.56 in 2010 dollars ($0.59 in 1980 dollars)
2010: $1.15
Change in real dollars: -26 percent

Eggs

1 dozen

1980: $1.98 in 2010 dollars ($0.75 in 1980 dollars)
2010: $1.52
Change in real dollars: -23.1 percent

Orange juice, frozen

Per can

1980: $3.16 in 2010 dollars ($1.20* in 1980 dollars)
2010: $2.50/can*
Change in real dollars: -21 percent

Whiskey

750 ml

1980: $15.79 in 2010 dollars ($5.99* in 1980 dollars)
2010: $12.99**
Change in real dollars: -17.7 percent

Car-tire balancing

Two tires

1980: $24.96 in 2010 dollars ($9.47 in 1980 dollars)
2010: $20.58*
Change in real dollars: -17.5 percent

Household energy consumption

Monthly bill

1980: $209.71 in 2010 dollars ($79.57 in 1980 dollars)
2010: $174.55
Change in real dollars: -16.8 percent

Gasoline

1 gal., unleaded

1980: $3.32 in 2010 dollars, ($1.26 in 1980 dollars)
2010: $2.83
Change in real dollars: -14.8 percent

Potato chips

16-oz. bag

1980: $5.27 in 2010 dollars ($2* in 1980 dollars)
2010: $4.57*
Change in real dollars: -13.3 percent

Ice cream

Half gal.

1980: $4.53 in 2010 dollars ($1.72* in 1980 dollars)
2010: $4.31*
Change in real dollars: -4.9 percent

Movie theater ticket

1 adult

1980: $8.72 in 2010 dollars ($3.31 in 1980 dollars)
2010: $8.82
Change in real dollars: +1.1 percent

Bread

Per loaf

1980: $1.34 in 2010 dollars ($0.51 in 1980 prices)
2010: $1.39
Change in real dollars: +3.4 percent

Home price

1980: $166,946 in 2010 dollars ($64,200* in 1980 dollars)
2010: $172,600*
Change in real dollars: +3.4 percent

Household income

1980: $46,109 in 2009 dollars ($17,710* in 1980 dollars)
2009: $49,777*
Change in real dollars: +8 percent

Man's haircut

1980: $12.15 in 2010 dollars ($4.61 in 1980 dollars)
2010: $13.18
Change in real dollars: +8.5 percent

Phone, residential landline

Monthly bill

1980: $24.46 in 2010 dollars ($9.28 in 1980 dollars)
2010: $26.87
Change in real dollars: +9.9 percent

Apartment rental

1 month

1980: $712 in 2010 dollars ($270 in 1980 dollars)
2010: $815/month
Change in real dollars: +14.5 percent

Dry cleaning

Two-piece suit

1980: $9.25 in 2010 dollars ($3.51 in 1980 dollars)
2010: $10.60
Change in real dollars: +14.6 percent

New car

1980: $19,790 in 2008 dollars ($7,574* in 1980 dollars)
2008: $23,051*
Change in real dollars: +16.5 percent

New York City subway fare

1 ride

1980: $1.32 in 2010 dollars ($0.50* in 1980 dollars)
2010: $2.25/ride*
Change in real dollars: +70.7 percent

Woman's shampoo, cut, and blow-dry

1980: $17.29 in 2010 dollars ($6.56 in 1980 dollars)
2010: $31.95
Change in real dollars: +84.8 percent

Dental care

Cleaning and inspection

1980: $53.61 in 2010 dollars, ($20.34 in 1980 dollars)
2010: $108.86*
Change in real dollars: +103.1 percent

Doctor's visit

1980: $41.27 in 2010 dollars ($15.66 in 1980 dollars)
2010: $89.63
Change in real dollars: +117.2 percent

College tuition

Annual tuition and room and board

1980: $9,142 in 2008 dollars ($3,499* in 1980 dollars)
2008: $20,435/year*
Change in real dollars: +123.5 percent

National health expenditures

Dollars spent per capita

1980: $2,874 in 2008 dollars ($1,100 per capita* in 1980 dollars)
2008: $7,681 per capita*
Change in real dollars: +167.2 percent

Cigarettes

Carton (10 packs)

1980: $14.02 in 2010 dollars ($5.32 in 1980 dollars)
2010: $55.10*
Change in real dollars: +293 percent