A comparison between 1964 and 2014 prices

Mark Perry recently posted the magic and miracle of of the marketplace: Christmas 1964 vs. 2014 – there’s no comparison. He took an advertisement from the Sears Christmas catalog for a color tv and determined that in 2014 prices, it would cost $5,700. He then used recent advertisements from Sears and Best Buy to determine what could be purchased for $5,700 which is pictured below.
I enjoy looking at these types of comparisons. It really is amazing how far we have progressed. The TV from the 2014 ad was listed for $400, which is $5,300 less than the one advertised in 1964. The TV from 2014 has a bigger screen, better picture quality, sound, etc. and for a fraction of the price. Another way to look at our progress is the number of hours required to purchase these similar items. For an individual making $10/hr (2014 dollars) it would take 40 hours to purchase the 2014 tv, but would take him 570 hours to purchase the 1964 tv.


One thought on “A comparison between 1964 and 2014 prices

  1. judging things in terms of labor cost is probably the best way to determine real prices. but determining the right labor cost is tricky too. I like to think in terms of minimum wage simply for the policy implications.

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