Many people would say it was cheap back then. Is it really the case?
Ah, the good old days! Nostalgia often paints a rosy picture of the past, where life was simpler, and everything seemed more affordable. It's a common belief that everything was cheap back in the day, and many of us have probably caught ourselves daydreaming about living in a time when a few coins could buy us a feast. But before we get lost in those daydreams, let's take a reality check and debunk this widespread notion.
Debunking the Belief
Why do most people have this unhealthy obsession with wanting to live in the past, claiming that everything was cheap? One of the primary reasons is the concept of the "good old days." As we grow older, our minds tend to romanticize the past, forgetting about the challenges and hardships we faced. Additionally, our parents or grandparents might have regaled us with tales of how they could buy a full meal for a few cents, adding to the allure of the past.
Another factor contributing to this belief is the perception of higher purchasing power. The Philippine peso had more value decades ago compared to today. It's true that the peso's purchasing power was stronger in the past, but simply converting prices without considering inflation does not give us an accurate picture.
The 'Mandela Effect'
Before we dive into the comparison of prices, let's take a moment to talk about the "Mandela Effect." This is a psychological phenomenon where a large group of people believe in a false memory or alternate reality. One of the most famous examples is the belief that Nelson Mandela died in the 1980s when, in reality, he passed away in 2013. Similarly, people often remember things as cheaper in the past than they actually were.
The "Mandela Effect" plays a role in our perception of the past, leading us to believe that everything was more affordable than it truly was. It's essential to recognize this cognitive bias when discussing the cost of living in different eras.
How Inflation Works
To accurately compare the cost of living in different time periods, we need to understand inflation. Inflation is the gradual increase in the prices of goods and services over time, resulting in a decrease of purchasing power of a currency. As inflation rises, each unit of currency buys fewer goods and services.
Computing inflation is a complex task, but economists use various methods to measure it accurately. The most common approach is the Consumer Price Index (CPI), which tracks the changes in the prices of a basket of goods and services commonly consumed by households. By comparing the CPI of different years, we can determine the inflation rate and adjust historical prices to their equivalent value in today's currency.
Every product and service has its own inflation rate so that means some do get more expensive over time than others. Apart from non-essential consumer products, fish and seafood are the ones that do get more expensive over time with a 12% inflation followed by vegetables at 10%. While it is true that people are earning more than what their parents or grandparents did. There are other factors that come into play so there are things where you can get a bang for your buck but there others that are totally rip you off.
Comparative Prices
Let's now dive into the comparison of prices for common Philippine goods in various decades. Keep in mind that the following figures have been adjusted for inflation, giving us a fair assessment of the real cost. Prices are based on the figures provided in advertisements from old newspapers and magazines. As inflation started to rise only in 1960 when the exchange rate has become officially available with $1.00 = Php 2.00, we have to extrapolate the possible exchange rate from 1900-1959 as there were no official historical data covering the time period.
The 1900s-1920s
Just as we transitioned to buying American consumer goods brought by them into the country, inflation has not kicked in yet. The peso was still pegged in with the US dollar ($1.00 = Php 1.00) so whatever the purchasing value of the latter is somewhat similar to the peso. However, there is income disparity in the colony as compared with those in the US mainland as an average Filipino would earn less than an average American would have earned at that time.
Let's compare the prices then:
a. Nueva Fuerza ("Bag-ong Kusog") newspaper - Php 0.03 (1915) = ~Php 50.54 (2023)
By comparison, leading newspapers that we can buy today range from Php 10 to Php 25. That's about half the price of the newspaper back in the day. However, Cebu's leading newspaper Sunstar listed it's cover price way below that.
b. Kodak Brownie Camera - Php 1.50 (1915) = ~Php 2,516.45 (2023)
Just as personal photography started to take off, the Brownie has been the most highly-sought camera in the market at that time. It may look as if it's affordable by most Cebuanos but it's actually expensive. Nowadays, the adjusted price is as expensive as it was a century ago. In fact, an average disposable film camera from Kodak in 2023 would be priced from Php 850 to Php 1,000.
c. "Mazda" 100-watt light bulb - Php 1.75 (1915) = ~Php 2,936.32 (2023)
A century ago, most Cebuanos were still using candles and oil lamps to light up their houses so the idea of buying a light bulb, let alone getting connected to the electric grid, is not common. It is interesting to know that the power utility (Visayan Electric Company) was the one selling these light bulbs as there were no cheap alternatives at that time. Although the prices have dropped, only the rich can afford electric lighting when light bulbs are even more expensive than the Kodak camera! But as with any technology, prices go down in time when mass production became more common today. These days, an average 100-watt LED bulb would go for about Php 180 to Php 350.
d. Funeral car rental - Php 10.00 (1915) = ~Php 16,777.63 (2023)
Known as 'automovil funebre,' this hearse rental service was offered by The Fashion Stables along Calle Magallanes. Their advertisement mentioned that they have significantly reduced the price for the rental in that month (June 1915). To add context to the ad, it may indicate that the tremendous death toll brought by cholera epidemics and outbreaks may already have subsided. However, the Spanish flu would have occurred a few years later and the cost of transportation for the dead may skyrocket by then. Nowadays, it's already included in some funeral services but seeing the rental price in 2023 would seem reasonable but still higher than you might expect.
Kuenzle & Streiff Inc. is selling a Fordson tractor from the Manila Trading & Supply Co. for Php 3,100. They advertised it as the only efficient tractor that is economical and easy to operate. There's no need for expert mechanics. The question is, how can farmers afford such a modern tractor? Rich landowners may probably get one for their farms.
Fordson was a brand name for tractors and trucks. It was used on a range of mass-produced general-purpose tractors manufactured by Henry Ford & Son Inc from 1917 to 1920, by Ford Motor Company and Ford Motor Company Ltd from 1920 to 1928, and by Ford Motor Company Ltd from 1929 to 1964.
Interestingly, there are old and refurbished functioning Fordsons sold or auctioned for at least the same price as it was a century ago!
f. Assorted Merchandise
The Bombay Visayan is one Indian-owned shop was selling a variety of merchandise in Cebu City. They posted the prices of their products in an advertisement where they gave out big discounts of as much as 50% off. Here are some interesting products that stood out:
Branded Shoes - Php 8.00 (1920) = ~Php 6,777.92 (2023)
Phonograph - Php 30.00 (1920) = ~Php 25,417.75 (2023)
Slippers - Php 0.60 (1920) = ~Php 508.18 (2023)
g. Automobile tires - Php 44.50 - Php 101.70 (1920) = ~Php 37,703.42 - Php 86,166.87 (2023)
The McClean Auto Tires was selling new automobile tires for Php 44.50 to Php 101.70 in those times considering car ownership is still reserved for the rich and powerful. Imagine that price in today's money! Nowadays, new branded tires would cost you as low as Php 3,800.00 for a Yokohama 175/70 R13 82T and as high as Php 52,747 for a Michelin Pilot Sport 4 S.
The 1930s
Ah, the pre-World War II era. Many people might think that living in the 1930s was incredibly cheap. However, when we adjust prices for inflation, we find that things were not as affordable as they might seem. Remember, it was a year into the Great Depression and so, the Philippines was not immune to the impact of the economic downturn ravaging the United States and elsewhere in the industrialized world.
For example, a loaf of bread, which might have cost around 10 centavos back then, would be equivalent to around Php 90 today. While it might not be too expensive, it's certainly not as cheap as a few coins. We can extrapolate that the exchange rate would be $1.00 = Php 1.25 during this decade.
a. Bag-ong Kusog newspaper - Php 0.12 (1930) = ~Php 101.64 (2023)
As the newspaper shifted from a Spanish-language publication to solely Cebuano, Bag-ong Kusog has gained a much larger readership by then thereby making the price point more competitive, from 3 centavos to 12 centavos, than before. It is obvious from the number of advertisements that you can see on every page.
Who would have thought that foreign-branded bicycles would cost this much during the 1930s? Well, we can't blame Visayan Hardware & Electrical Supply to give discounts on these expensive goods especially when everyone is feeling the money crunch from the Great Depression. The Swedish bicycle brand Crescent started producing these bikes in 1908 in Chicago, Illinois where Western Wheel Works manufactured bikes with the same brand.
If you want to get an imported, high-quality bicycle these days, the price would probably be the same as it ranges from as low as Php 3,000 to as high as Php 90,000!
This female students' dormitory is just a few steps away from the Cebu High School, Cebu Normal School, and City Intermediate School. It's advertised as an up-to-date accommodation for young ladies looking for modern convenience with the care and comfort of a first-class home. The average monthly rent for female dormitories in that area today ranges from as low as Php 3,500 to as high as Php 10,000.
Love to play basketball? We'll the manufacturing process of making basketball was different so it's not surprising that a simple basketball would cost you a lot more money. Even if the Palace of Sporting Goods is the leading store in Cebu City at that time, the price is quite high because they put a premium on quality. Basketballs were mostly hand-made then using actual leather and not cheaper and stronger synthetic materials. Nevertheless, getting a popular basketball brand would cost you Php 5,000 - Php 7,000 for a Nike ball and Php 1,700 - Php 3,000 for a Molten ball.
The 1940s
The 1940s were a time of rebuilding after the war, and inflation was a significant concern. Prices of basic goods increased, and while some might have remained relatively stable, they were still not as cheap as we'd like to believe. For instance, a gallon of gasoline that might have cost 25 centavos would be equivalent to around Php 200 today. It's not a price that breaks the bank, but it's far from pocket change. We can extrapolate that the exchange rate would be $1.00 = Php 1.50 during this decade.
a. Philco Radio - Php 54.00 (1941) = ~Php 41,498.92 (2023)
Since television was not yet common, radio ruled the airwaves but owning Philco-Tropic 705-C can be a status symbol if you want something of quality from the most popular department store of that time - Heacocks. So the question is, would you buy one at that price tag?
b. Pioneer Press newspaper - Php 0.20 (1946) = ~Php 112.74 (2023)
The war has just ended and there was a scarcity of basic goods and resources so it's not surprising that even buying a newspaper would cost this much in 2023 money. There was a paper ration throughout the war and after that so publishers have to put a higher price to sustain their operations. In fact, they limited the publication to only 5,000 copies with half being sent to neighboring islands and Mindanao.
c. Philippine Airlines Fares
It is interesting to see the advertised rates for Philippine Airlines for those looking to travel from Cebu to Manila, Legaspi, Tacloban, and Tagbilaran. They resumed flights just after the war was over and the country gained complete independence from the United States. It's surprising that the fare for Cebu to Tagbilaran, which was the cheapest in 1946, is actually more expensive than its 2023 inflation-adjusted rate.
Cebu-Manila - Php 75.00 (1946) = ~Php 43,449.43 (2023)* = Php 7,164.00 (actual)**
Cebu-Legaspi - Php 45.00 (1946) = ~Php 26,069.77 (2023)* = Php 13,268.00 (actual)**
Cebu-Tacloban - Php 30.00 (1946) = ~Php 17,379.66 (2023)* = Php 4,907.00 (actual)**
Cebu-Tagbilaran - Php 9.20 (1946) = ~Php 5,326.70 (2023)* = Php 11,102.00 (actual)**
* - inflation-adjusted
** - as of writing
The 1950s
The post-war era saw an improvement in the Philippine economy, but inflation continued to influence prices. A bottle of soft drink, which could have been purchased for 20 centavos, would be about Php 120 today. So, even in the relatively prosperous 1950s, things were not as cheap as the "Mandela Effect" might suggest. We can extrapolate that the exchange rate would be $1.00 = Php 1.75 during this decade.
a. Philippine Airlines Fares
By the 1950s, Philippine Airlines has started to offer more destinations for those looking to travel to different cities in the country. Since there are no promo fares and budget airfares then, it's not a surprise that you are paying a premium for that kind of transport. At that time, the Lahug Airport was still in operation and their main ticketing office can be found at the Sto. Niño Building. It is interesting to note, there were flights going to Daet, Guian, Jolo, Masbate, and Naga at that time.
Cebu-Manila - Php 69.60 (1949) = ~Php 28,315.75 (2023)* = Php 7,164.00 (actual)**
Cebu-Bacolod - Php 13.60 (1949) = ~Php 5,532.19 (2023)* = Php 4,347.00 (actual)**
Cebu-Cagayan - Php 28.60 (1949) = ~Php 11,633.65 (2023)* = Php 3,190.00 (actual)**
Cebu-Capiz - Php 30.40 (1949) = ~Php 12,367.31 (2023)* = Php 11,140.00 (actual)**
Cebu-Cotabato - Php 47.20 (1949) = ~Php 19,202.44 (2023)* = No Flights Available
Cebu-Daet - Php 68.40 (1949) = ~Php 27,831.45 (2023)* = No Flights Exist
Cebu-Davao - Php 51.80 (1949) = ~Php 21,074.64 (2023)* = Php 16,179.00 (actual)**
Cebu-Dipolog - Php 25.80 (1949) = ~Php 10,494.55 (2023)* = Php 17,874.00 (actual)**
Cebu-Dumaguete - Php 15.60 (1949) = ~Php 6,343.61 (2023)* = Php 8,589.00 (actual)**
Cebu-Guian - Php 29.40 (1949) = ~Php 11,961.33 (2023)* = No Flights Exist
Cebu-Iloilo - Php 19.20 (1949) = ~Php 7,810.38 (2023)* = Php 2,555.00 (actual)**
Cebu-Jolo - Php 73.20 (1949) = ~Php 29,782.52 (2023)* = No Flights Exist
Cebu-Koronadal - Php 66.80 (1949) = ~Php 27,176.65 (2023)* = No Flights Exist
Cebu-Legaspi - Php 51.20 (1949) = ~Php 20,832.49 (2023)* = Php 13,268.00 (actual)**
Cebu-Masbate - Php 44.00 (1949) = ~Php 17,899.50 (2023)* = No Flights Exist
Cebu-Naga - Php 59.80 (1949) = ~Php 24,328.64 (2023)* = No Flights Exist
Cebu-Tacloban - Php 19.40 (1949) = ~Php 7,895.91 (2023)* = Php 4,907.00 (actual)**
Cebu-Tagbilaran - Php 9.20 (1949) = ~Php 3,744.96 (2023)* = Php 11,102.00 (actual)**
Cebu- Zamboanga - Php 54.80 (1949) = ~Php 22,292.04 (2023)* = Php 5,260.00 (actual)**
* - inflation-adjusted
** - as of writing
The 1960s
The 1960s were a time of growth and development, with various industries flourishing. Despite this, prices of many goods remained higher than we'd expected. A kilogram of rice, which might have cost 30 centavos, would be roughly Php 300 today. That's certainly not something you'd expect to buy with spare change.
a. The Republic News - Php 0.10 (1961) = ~Php 14.23 (2023)
The Republic News was once a leading newspaper in Cebu City during that time.
The 1970s
In the 1970s, inflation soared, impacting the cost of living significantly. The price of basic commodities skyrocketed, making it a challenging time for many families. For example, a pair of rubber slippers that might have been priced at 70 centavos would cost around Php 430 today. Definitely not a cheap bargain!
a. The Freeman Newspaper - Php 0.15 (1970) = ~Php 14.50 (2023) = Php 8.00 (Actual)
The Freeman is a daily English-language newspaper published in Cebu, Philippines. It is the longest-running newspaper in Cebu, first published on May 10, 1919.
b. Payday Sale (Consumer Goods)
One page of the Manila Times features a price list of common grocery goods sold at the Queen's Supermart in 1971. The "Araw ng Sweldo" promotion showcased payday specials for the following products (still available today):
Dutch Baby evaporated milk - Php 0.90 (1971) = ~Php 76.07 (2023)* = Php 218.27 (actual)**
Dutch Baby powdered milk - Php 16.99 (1971) = ~Php 1,435.89 (2023)* = Php 457.23 (actual)**
Birch Tree powdered milk - Php 16.34 (1971) = ~Php 1,380.95 (2023)* = Php 296.18 (actual)**
Pelargon - Php 13.19 (1971) = ~Php 1,114.73 (2023)* = Php 915.16 (actual)**
Sustagen - Php 23.35 (1971) = ~Php 1,973.39 (2023)* = Php 1,769.50 (actual)**
Ovaltine - Php 3.87 (1971) = ~Php 327.06 (2023)* = Php 1,152.00 (actual)**
Nescafe - Php 8.63 (1971) = ~Php 729.34 (2023)* = Php 192.00 (actual)**
Del Monte Pineapple Juice - Php 2.79 (1971) = ~Php 235.80 (2023)* = ~Php 362.50 (actual)**
Safeguard - Php 1.67 (1971) = ~Php 141.14 (2023)* = Php 115.00 (actual)**
Johnson Baby Powder - Php 2.16 (1971) = ~Php 182.55 (2023)* = Php 251.00 (actual)**
Purefoods Spiced Ham - Php 5.75 (1971) = ~Php 485.95 (2023)* = ~Php 904.20 (actual)**
* - inflation-adjusted
** - as of writing
The 1980s
The 1980s were marked by political and economic turbulence, and inflation remained a problem. Many essential goods and services saw a surge in prices. A local newspaper, which might have cost 50 centavos, would be around Php 290 today. Not exactly pocket-friendly, right?
a. The Republic News - Php 1.25 (1984) = ~Php 19.62 (2023)
The waning years of the Martial Law era saw a rise in inflation with this particular newspaper issue reaching over Php 1.00!
The 1990s
The 1990s brought some stability to the economy, but inflation was still a factor. The prices of goods and services had increased compared to previous decades. A cinema ticket that could have been purchased for 20 pesos would be roughly Php 70 today, showing that even in the '90s, things were not dirt cheap.
a. Jollibee Menu
Who doesn't like Jollibee? Pretty sure everyone has grown up loving their Chickenjoy and Yum burger when Mom and Dad brought them to the fast-food joint. When you take a look at the old menu, you're pretty sure about thinking about going back in time to enjoy the "cheap" price of your favorite value meal. Would you? Well, sorry to burst your bubble but the 90's prices were not what they seem.
Value Meals
1 Spaghetti - Php 29.00 (1993) = ~Php 125.83 (2023) = Php 60.00 (actual)
2 Hotdog - Php 29.00 (1993) = ~Php 125.83 (2023) = Php 85.00 (actual)
3 Regular Yum - Php 29.00 (1993) = ~Php 125.83 (2023) = Php 40.00 (actual)
4 Burger Steak - Php 29.00 (1993) = ~Php 125.83 (2023) = Php 60.00 (actual)
5 Chickenjoy - Php 39.00 (1993) = ~Php 169.21 (2023) = Php 82.00 (actual)
6 Regular Yum w/ Cheese - Php 39.00 (1993) = ~Php 169.21 (2023) = Php 66.00 (actual)
7 Spaghetti & Chickenjoy - Php 49.00 (1993) = ~Php 212.61 (2023) = Php 132.00 (actual)
8 Champ - Php 59.00 (1993) = ~Php 255.99 (2023) = Php 175.00 (actual)
Breakfast Meals
1 Pancakes - Php 19.00 (1993) = ~Php 82.43 (2023) = Php 80.00 (actual)
2 Hotdogsilog - Php 29.00 (1993) = ~Php 125.83 (2023) = Php 117.00 (actual)
3 Longsilog - Php 39.00 (1993) = ~Php 169.21 (2023) = Php 164.00 (actual)
4 Tapsilog - Php 39.00 (1993) = ~Php 169.21 (2023) = Php 164.00 (actual)
5 Cornsilog - Php 39.00 (1993) = ~Php 169.21 (2023) = Php 164.00 (actual)
* - inflation-adjusted
** - as of writing
What Was Cheaper in the Past?
While it's clear that many things were not as cheap as we might think, there were some items that were relatively more affordable in the past:
- Property prices, especially for land, were considerably lower in the past compared to today. Buying a piece of land or a house was relatively easier on the wallet in earlier decades.
- Some basic services like public transportation and healthcare were less expensive in the past. For instance, a jeepney ride or a consultation with a doctor might have cost significantly less than today.
What Was More Expensive in the Past?
On the other hand, several things were surprisingly more expensive in the past:
- Electronic gadgets and appliances were luxury items in earlier decades, and their prices were much higher in comparison to their current counterparts.
- Making long-distance calls or sending telegrams used to be a costly affair, unlike today's affordable and instantaneous communication options.
Final Thoughts
As we debunk the belief that everything was cheap back in the day, it's essential to remember that nostalgia often colors our perceptions. While the purchasing power of the peso was stronger in the past, inflation played a significant role in shaping the cost of living.
Comparing prices over the decades, we can see that many things were not as affordable as we remember them. However, it's essential to acknowledge that there were some aspects, like real estate and certain services, that were relatively more accessible in the past.
As we continue to move forward in time, it's natural to wonder how future generations will perceive our current era. Will they, too, fall into the trap of the "Mandela Effect," believing that everything was cheaper "back in their day"? Only time will tell.
So, the next time you find yourself longing for the "good old days," remember that while they might have been filled with charm and nostalgia, they weren't necessarily a paradise of cheap prices. Embrace the present, for it's the only time we truly have, and make the most of what it has to offer.
(to be updated)
References:
Inflation Rates in the Philippines. World Data Info. (starts in 1960 up to 2023)
Philippine Inflation Calculator, by Ace Subido. (starts in 1960 up to 2022 only)
Pinoy Inflation Calculator. ABS-CBN News. (up to 2018 only)
Nueva Fuerza. January 1915.
Nueva Fuerza. January 1920.
Bag-ong Kusog. January 1930.
Bag-ong Kusog. November 1941.
Pioneer Press. April 1946.
Pioneer Press. November 1949.
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