The Price of Life in the United States: 1946 vs. 2006

Among the most pervasive changes of the past 60 years has been the cost of living. No costs or salaries could remain static during six decades of capitalism, as 1946 saw the beginning of the removal of wartime wage and price controls. Major economic growth ensued, aided and abetted by technology innovations that continue to transform society.

The figures below represent the average costs of U.S. items in 1946 and in 2006. Between those 60 years, the inflation rate depreciated the dollar’s buying power elevenfold, such that $1 in 2006 buys roughly what 9 cents bought in 1946. But, while many prices rose considerably, salaries often increased to a greater degree during that period, so individuals had much greater relative earning power. And, if inflation is factored in, the cost of some commodities actually dropped over time. Still, some of the numbers offer an interesting contrast: