Cost of Living in 1960's

Measuring Inflation from Benchmark Years

  1964 was a special year for benchmarking inflation since it was the last year of 90% silver coinage. The 1964 Kennedy half dollar is also special since it was the first year of that issue and the last year of 90% silver coinage. (There were more silver Kennedy halfs minted after 1964, but they all used the 1964 mint date.) There were more than 480,000,000 Kennedy coins minted and they did not stay in circulation very long which means they are common, not worn down, and their value results from the silver content rather than any minimal numismatic value.

Typical circulated 90% silver coins are said to have 715 Troy ounces of silver per $1,000 face value. (There are 12 Troy ounces to one pound.) So, 2000, $.50 coins divided into 715 equal 0.3575 Troy ounces of silver per half dollar. But un-circulated, or minimally circulated Kennedy coins have 723 Troy ounces per $1,000 face value or 0.3617 Troy ounces per coin.

In this way inflation can easily be measured by subtracting the face value of the Kennedy half ($0.50) from the current retail price of the coin. In Aug 2011, the "paper" spot market price was $14 per coinflation but the physical market price was $17 per ebay

So there has been ~$15/half or $30/dollar inflation since 1964. Also notice at the bottom how the cost of labor also tracks inflation.


Other benckmark years where the price of precious metal can be compared are:









PER CAPITA CONSUMPTION

















Auto New Auto Gas &



Personal
Intercity








Today's cost
Year Clothing Food Usage Auto Parts Oil Housing Utilities Telephone Physicians Care Tobacco Trans Recreation Giving Education Total Cost Gold Gold Silver Silver in Derk


















Multiplier Absolute Multiplier Absolute Multiplier multiplier
Last gold coin 1933 $29.44 $92.29 $24.66 $6.36 $2.39 $11.93 $64.44 $20.69 $3.18 $4.77 $5.57 $9.55 $1.59 $17.50 $3.98 $3.98 $302.32 1 $20.00 1 $0.44 1 15.87

























Last Peace dollar 1935 $39.26 $109.08 $33.76 $11.78 $3.14 $13.35 $62.03 $21.98 $3.93 $5.49 $6.28 $10.99 $2.36 $20.41 $7.07 $3.93 $354.84 1.17 $34.84 1.74 $0.58 1.34 ---

























Last silver half 1964 $131.58 $472.94 $245.72 $90.89 $15.85 $68.69 $306.49 $82.96 $29.06 $36.46 $39.63 $39.63 $7.93 $117.84 $32.33 $25.36 $1,743.36 5.77 $35.00 1.75 $1.29 2.96 6.58

























Last gold backed dollar 1971 $208.99 $710.26 $419.43 $135.79 $34.19 $111.72 $494.56 $119.43 $52.97 $73.68 $58.27 $54.42 $21.19 $221.51 $65.01 $65.97 $2,847.39 9.42 $41.00 2.05 $1.39 3.19 5.35

























Last accurate record 2007 $971.00 $3,328.00 $4,539.00 $1,478.00 $471.00 $1,276.00 $11,269.00 $1,393.00 $706.00 $1,790.00 $364.00 $223.00 $324.00 $1,413.00 $1,219.00 $621.00 $31,385.00 103.81 $800.00 40.00 $18.33 41.95 1



























1lb 1lb Dozen Quart 10 lbs 5lb
Cost Gold Gold Derk's






$1,700.00 85.00 $33.00 56.51


Bread Chicken Eggs Milk Potatoes Sugar Average Multiplier Absolute Multiplier Multiplier











Last gold coin 1933 $0.07 $0.22 $0.26 $0.10 $0.25 $0.29 $0.20 $1.00 $20.00 1 15.87




































Last Peace dollar 1935 $0.06 $0.32 $0.44 $0.13 $0.21 $0.54 $0.28 1.44 $34.84 1.74 ---




































Last silver half 1964 $0.19 $0.37 $0.52 $0.29 $0.87 $0.63 $0.48 2.43 $35.00 1.75 6.58




































Last gold backed dollar 1971 $0.24 $0.40 $0.53 $0.36 $1.10 $0.67 $0.55 1.16 $41.00 2.05 5.35




































Last accurate record 2007 $1.24 $1.23 $1.56 $1.03 $4.12 $2.02 $1.87 3.39 $800.00 40.00 1




































Prices November 19, 2012 $2.15 $1.49 $2.59 $3.11 $8.90 $4.76 $3.83 6.96 $1,700.00 85.00













From 1933 to 2007 cost of living has increased by factor of 104, while gold increased by a factor of 40 and silver increased by a factor of 42. However, basic food items only increased by a factor of 3.4! Basic food items should increased by a factor of ~100, but industrial agriculture seems to have kept it down! By 2012, basic food items only increased by a factor of 7 while gold increased by a factor of 85 and silver increased by a factor of 57. Gold should minimally increase by a factor of 2.6 to match the historical cost of living or ~$3,400/oz. Silver should minimally increase by a factor of 2.5 to match the historical cost of living or ~$82.50/oz.
Source: The Value of a Dollar: Prices and Income in the United States 1860-2009, 4th Ed. Scott Derks http://www.amazon.com/The-Value-Dollar-Incomes-1860-2009/dp/1592374034 http://www.kitco.com/charts/historicalgold.html http://www.kitco.com/charts/historicalsilver.html Prepared by Tobin Maginnis 19-Nov-2012

Advertised items from the 1960's

26 inch boys and girls Starjet Bicycle $29.95 Massachusetts 1965 45's records Phonograph records 54 cents each New Jersey 1966 55 piece silver plated set $89.75 Ohio 1962 Alarm Clock $1.99 New Jersey 1966 Blast Shelter you can survive nuclear attack California 1961 Boys Scooters $4.95 Ohio 1962 Chalk and Blackboard set 99 cents Ohio 1962 Childrens Car Seats $5.95 Washington 1964 Childrens Tricycle $9.95 Ohio 1962 Christmas tree Lights $3.49 Massachusetts 1965 Coal $14.95 ton Ohio 1962 Cotton buds Johnson & Johnson 33 cents per pk New Jersey 1966 =================== Apples 49 cents for 3 pounds Wisconsin 1963 Asparagus 19 cents per pound Wisconsin 1963 Bacon 79 cents per pound New Jersey 1966 Bananas 19 cents for 2 pound Maryland 1960 Bananas 10 cents per pound Wisconsin 1963 Banquet Frozen Dinners 39 cents Wisconsin 1963 Beef Chuck Roast 49 cents per pound Wisconsin 1963 Broiler Chickens 29 cents per pound Massachusetts 1965 California Grapes 14 cents per pound Massachusetts 1965 Cambells Soup 89 cents for 6 cans Massachusetts 1965 Carrots 15 cents per pound New Jersey 1966 carrots 29 cents for 4 pounds Massachusetts 1965 Cherios 25 cents per pk California 1961 Cheerios Cereal 28 cents per pk New Jersey 1966 Chicken 29 cents per pound Wisconsin 1963 Colby Cheese 39 cents per pound Oregon 1963 Colby Cheese 39 cents per pound Wisconsin 1963 Corn 6 for 25 cents Florida 1960 Del Monte Peaches 29 cents per can 1960 Eggs 55 cents per dozen New Jersey 1966 Egg Nog 69 cents per quart Massachusetts 1965 Fast Food Hamburger 20 cents New York 1962 Flour 49 cents for 5 pounds Maryland 1960 Fresh Carrots 9 cents per bunch Massachusetts 1965 Fresh Eggs 49 cents per dozen Maryland 1960 Frozen Chicken Pies 29 cents California 1966 Frozen Cod Fillets 33 cents per pound Wisconsin 1963 French fries, Birdseye, frozen 89 cents for 9 ounces New Jersey 1966 Frozen French Fried Potatoes 10 cents for 8 ounces Massachusetts 1965 Gerbers baby Food 25 cents for 3 California 1966 Green Peppers 5 cents each Wisconsin 1963 Ground Beef 45 cents per pound Wisconsin 1963 Ham 39 cents per pound Wisconsin 1963 Heinz Catsup 28 cents Massachusetts 1965 Heinz Ketchup 22 cents California 1966 Hickory Smoked Hams 49 cents per pound Maryland 1960 Ice Cream 79 cents half gallon Washington 1964 Jello 35 cents for 4 pks Maryland 1960 Kielbasa 59 cents per pound Wisconsin 1963 Kraft Deluxe Dinner 39 cents Wisconsin 1963 Kraft Miracle Whip 51 cents Maryland 1960 Kraft Processed Cheese 39 cents 8 ounces California 1966 Lamb Chops 89 cents per pound Wisconsin 1963 Land O Lakes Butter 67 cents per pound Maryland 1960 Large Eggs 45 cents per dozen Wisconsin 1963 large Eggs 45 cents per dozen California 1966 Lettuce, iceberg 25 cents per head New Jersey 1966 Liver , Calf 79 cents per pound Florida 1960 Macaroni and Cheese dinners 39 cents Wisconsin 1963 Margarine 31 cents per pound California 1966 Mazola Vegatable Oil 69 cents Wisconsin 1963 Miracle Whip 49 cents Wisconsin 1963 North State Frozen Dinners 39 cents Wisconsin 1963 Onions 29 cents for 2 pounds Wisconsin 1963 Oranges 89 cents for 2 dozen Wisconsin 1963 Oven ready Turkeys 39 cents per pound Maryland 1960 Pack of chewing gum 5 cents Maryland 1960 Pork Chops 59 cents per pound Maryland 1960 Porterhouse Steak $1.19 per pound California 1966 Potatoes 39 cents for 10 pounds Wisconsin 1963 Rump Steak $1.49 Massachusetts 1965 Sirloin Steaks 89 cents per pound Maryland 1960 Skippy Peanut Butter 79 cents Massachusetts 1965 Sliced Bacon 29 cents per pound Wisconsin 1963 Spare Ribs 49 cents per pound Massachusetts 1965 Sugar 38 cents for 5 pounds Massachusetts 1965 Sugared Donuts 49 cents per dozen Wisconsin 1963 Swanson Chicken TV Dinner 49 cents California 1961 Sweet Corn 5 cents each California 1966 Sweet potatoes 29 cents for 3 pounds New Jersey 1966 Tangerines 29 cents for 1 dozen Massachusetts 1965 Tide 19 cents Washington 1964 Tide Laundry Soap 59 cents New Jersey 1966 Toothpaste Crest 50 cents New Jersey 1966 Veal Cutlets 68 cents per pound Massachusetts 1965 Watermelon 2 1/2 cents per pound California 1961

Other prices from the 60's

In 1960 a new house cost $12,700.00 and by 1969 was $15,500.00 In 1960 a gallon of gas was 25 cents and by 1969 was 35 cents In 1960 the average cost of new car was $2,600.00 and by 1969 was $3,270.00 Volkswagon beetle $1,769 From Car Prices in the 60's Ford Mustang 2 door hardtop $2,368 Misses Swinging Shifts Skirts $5.00 From Prices for clothes and fashions in the 60's Oxford mens Shoes $12.95 Automatic Can Opener $8.88 From Electrical and Electronic Prices in the 60's Automatic Electric Blanket $9.94 Oranges 89 cents for 2 dozen Oven ready Turkeys 39 cents per pound From Price of Food 60's Modern Walnut Bookcase $29.97 From Furniture Prices 60's Coal $14.95 ton From Prices for other stuff 26 inch color TV $379.00 Washington 1964 4 speed reversible drill $28.97 Massachusetts 1965 5 transistor push button tape recorder $12.88 Massachusetts 1965 9 inch portable TV UHF VHF $99.95 Massachusetts 1965 Automatic Can Opener $8.88 Massachusetts 1965 Automatic Electric Blanket $9.94 California 1961 Dishwasher RCA $218.88 New Jersey 1966 Electric Dryer $189.00 California 1961 Electric Sewing Machines $49.95 Ohio 1962 Fisher Stereo Combination $299.00 California 1961 Full Side By Side Fridge Freezer $458.00 Washington 1964 GE Ultra Color TV $395 Massachusetts 1965 Hoover Cleaner $59.95 Wisconsin 1963 Motorola Car Radio $39.95 California 1961 RCA 24 inch Black and White TV $289.00 Maryland 1960 Sunbeam Cordless razor $24.50 Washington 1964 Transistor Portable Radio $6.96 Massachusetts 1965 Transistor radio $6.98 Massachusetts 1965 Waffle Iron $14.98 New Jersey 1966 Walkie Talkies $10.97 per pair Massachusetts 1965 Whirlpool Portable Dishwasher $149.99 Massachusetts 1965 ZIG ZAG Sewing Machine $49.98 Massachusetts 1965 =============== Population 177,830,000 Unemployment 3,852,000 National Debt 286.3 Billion Minimum Wage $1.00 Life Expectancy for males, 66.6 years, females, 73.1 years Auto deaths 21.3 per 100,000 1960's Average Teacher's Salary $5,174 - Average $/hr $2.56 - $0.50 = 20% 2008 Average Teacher's Salary $50,077 - Average $/hr $24.80 - $5.00 = 20%