Issue Index |
Successful Aging - Archived Article
Are Costs Too High?
Have you ever said to yourself or heard someone else say, "Things were never this expensive years ago!"
If you've been retired for a while, you may be shocked by the prices of household items and basic services nowadays. You may have decided to do without rather than pay what you think is an exorbitant price for something, even something that could improve your quality of life. But consider some facts before you decide that prices today are way too high.
Have you considered the effects of inflation? It is a complicated thing, but it may make you think twice about how expensive things really are in comparison to prices of yesterday.
Back in 1951, a gallon of gas cost about $.27 cents. Cheap, wasn't it--especially compared to today's astronomical price of $1.60 a gallon!
But consider this: in 1951, $.27 cents was equivalent to $1.77 today! You were actually paying more for gas in 1951. Here's another thought to ponder: $100 worth of groceries just twenty-five years ago is equivalent to about $270 in today's supermarkets.
Are you still skeptical? Maybe this will shed some light. Think about how much you earned when you first starting working. For example, in 1932 the average weekly wage of a manufacturing-production worker was $16.89 a week. Today, that figure is equivalent to $500! A cook in 1932 earned $15.00 a week. Today that amount is equal to $236 dollars a week!
Here's another factor to think about. According to the Official Web-Site of the Social Security Administration, www.ssa.gov, back in 1937,and through 1940, Social Security checks were paid in a one-time lump sum payment upon retirement. The average check was $58.06! The lowest payment ever made was for 5 cents. Imagine getting that check in the mail and realizing you had to buy groceries!
As the value of our dollar lessens, we have to use more of it. Paying for goods and services in today's economy may be more affordable than you think. For example, suppose you can't drive and you need to get somewhere that's not on a bus route. Imagine this is an important activity that you have been looking forward to. Would you consider taking a taxicab there if it would cost you $15.00? At first, $15.00 for a taxi ride may seem way overpriced. But what if you realized that $15 is equivalent to about $3.50 in 1967?
Of course, it is true that there will be some services and products that are beyond the limits of our pocketbooks. However, think about the effects of inflation, and the value of a dollar will look a whole lot different to you. Some of the things you are depriving yourself of may really be within your reach.
The next time someone offers to mow your lawn or do another chore in your home for $10.00 an hour, consider that he or she is only asking for the equivalent of a dollar in 1932. That's a small price to pay for the kind of independence those services could afford you! What a bargain!