Is Life More Expensive Now or In the 1960’s??
The guys on the Prairie Farm Podcast recently stumbled onto something that completely changed their perspective on economics. After digging into the data comparing 1965 to 2025, Nicolas walked away with a realization: "I thought for sure everything was way cheaper today than it was back then. Besides maybe rent and mortgages, I knew that was kind of going up. I thought, nope, same price, we're getting paid the same, it's all the same."
That discovery sparked a deeper conversation about what economic progress actually means for average Americans, especially those living in the Midwest.
The Work Hours Puzzle
Let's start with how much time Americans spend working. According to data from the Pew Research Center, working-age men spent an average of 46 hours per week at paid work in 1965. By 2011, that number had dropped to about 35 hours per week. Working-age women, meanwhile, doubled their time at paid work from 15 hours weekly in 1965 to 30 hours in 1998, though it's since declined to 25 hours by 2011.
But here's where it gets interesting. The Federal Reserve Bank of St. Louis reports that annual work hours per employed person have remained remarkably stable when you look at the big picture. In 1965, Americans worked roughly 1,900-2,000 hours per year. In 2024? Still around 1,976 hours annually for full-time employees.
We're basically putting in the same time, just distributed differently.
The Dollar's Purchasing Power
When you account for inflation, $1 in 1965 equals about $10.29 in 2026 dollars, according to the Bureau of Labor Statistics Consumer Price Index data. That means something that cost a buck back then would cost roughly ten bucks today. Pretty straightforward, right?
But the real question is: are we better off?
Real median household income — that's income adjusted for inflation — was around $58,930 in 1984 (in 2023 dollars). By 2023, it had climbed to $80,610, representing about a 37% increase. Not bad. But when you factor in how the costs of specific essentials have changed, the picture gets murkier.
Where the Money Actually Goes
Here's where things get fascinating. Data from the Washington Post's analysis of Consumer Expenditure Survey data shows that housing costs have ballooned from 19% of household budgets in 1984 to 27% today. Healthcare spending as a percentage of income has similarly skyrocketed.
In 1970, healthcare costs averaged $297 per person annually. Education at four-year public universities cost $1,542 for tuition, fees, room, and board in 1971-72. Today, these costs have far outpaced general inflation.
Meanwhile, food as a percentage of household spending has dropped dramatically — from about 32.5% of income in 1950 to roughly 13% in 2024, according to Bureau of Labor Statistics data. We're spending less on what we eat but more on where we live and staying healthy.
The Four Pillars of Financial Stability
During their coffee time conversation, the podcast crew landed on what they call the four essentials: medical insurance, mortgage or rent, vehicles, and food. As Nicolas puts it, "if you can pay for your medical insurance, your mortgage, your vehicles and your food, if you can do that and not worry about having to do that, the happiness you experience is up to you at that point."
That observation cuts to the heart of something important. Census Bureau data shows median household income in 2024 was $83,730, statistically similar to 2023's $82,690. For many Americans, that income covers the basics — sometimes barely — but hasn't translated into the dramatic improvements in quality of life that decades of economic growth might suggest.
The Midwest Reality Check
Riley, the Prairie Farm Podcast's resident penny pincher, offered an interesting thought experiment: "If I was given $100,000, what would I do with it? Would it demonstrably make my life better? Would I live my life differently? And I was like, I don't think so."
That's the reality for a lot of folks in the Midwest. Once basic needs are met, more money doesn't automatically equal more happiness or satisfaction. The endless chase for better economics, especially in communities that don't have the resources of coastal cities, might not be the answer.
Kent added another crucial point about where real power lies: "The biggest vote is with your dollar. And so if you see somebody who's doing things well, doing it in a way that you like better, give them your dollar."
What This Means for Conservation and Agriculture
For those working in agriculture and conservation — the core audience Nicolas serves through Hoksey Native Seeds — this economic reality has practical implications. Farmers and landowners aren't getting dramatically richer in real terms than their 1965 counterparts. The pressures are different, the challenges have evolved, but the fundamental economics? Remarkably similar.
That's why thoughtful land management decisions matter more than ever. When profit margins are tight and have been for decades, every acre counts. Incorporating native plantings through programs like CRP doesn't just make ecological sense — it provides stable income streams that help meet those four essential pillars of financial stability.
Iowa ecotype native seed mixes can fit into a diversified land management strategy that balances production agriculture with conservation goals, providing both ecological benefits and economic stability.
The Takeaway
The data tells a story that should make us rethink how we approach community development, personal finances, and policy in the Midwest. We're not powerless victims of economic forces beyond our control, but we also shouldn't pin all our hopes on economic growth solving our problems.
As Nicolas concluded: "We gotta look elsewhere to figure out some of this satisfaction in life, especially here in the Midwest."
Maybe that's the most important economic lesson of all — the things that make life worth living often can't be measured in inflation-adjusted dollars.
Sources:
Federal Reserve Bank of St. Louis, Real Median Household Income data
Pew Research Center, Americans' Time at Work, Housework, and Child Care 1965-2011
U.S. Bureau of Labor Statistics, Consumer Price Index and Consumer Expenditure Surveys
U.S. Census Bureau, Income in the United States: 2024
Washington Post analysis of Consumer Expenditure Survey data, June 2024
Let me know if you'd like me to adjust either piece!
