What Was!

With all of the discussion today concerning the cost of gasoline, food, etc., I wondered what gas cost in 1961.

I picked 1961, because that is the year that Sharon & I got married, and we rented our first apartment in Arlington, Virginia.

I was working at the Department of Commerce, in the accounting office of the Secretary of Commerce as an intern, and Sharon was working at the CIA.

The week before we were to be married, my Supervisor called me into his office and suggested that I needed to slow down, because I might make a mistake. I asked him “had I made a mistake?” He said “ no, but I might.” He also stated that if there were to be a reduction in force, I would be the first one to go, as I had been the last to be hired. He also stated that he was a GS-13 and that the number of employees that he was responsible for, impacted his GS rating. Obviously, this discussion bothered me.

My first assignment had been in the accounts payable section. There were two full time accounts payable clerks, and they were processing approximately 25 vouchers a day for payment.

The job consisted of looking at the invoice that a contractor had submitted, comparing it to their contract, and validating that all of the sign offs were there. Once this was done, a request was prepared and sent to the Treasury Department, for them to issue a check to the vendor. All supporting documentation was included with the request.

In a few days, I was processing over 50 vouchers a day, and in a week there was no backlog. When that occurred, I was moved to another accounting department.

Having cycled through the other accounting functions, I was sent back to accounts payable. I noticed that there was a significant backlog again. I also realized that each accounts payable clerk was only processing 25 vouchers a day. I quickly got to my 50 plus vouchers a day and the backlog disappeared.

I came to the conclusion, after my talk with my Supervisor, that I needed to find another job. However, my wedding was only a few days away, so that would have to wait.

Our wedding was on Saturday, October 7, 1961, and we planned to spend a week at Nags Head, on the Outer Banks of North Carolina. By Tuesday, I decided to tell Sharon that we needed to cut our honeymoon short, and go back home, as I needed to find a new job.

Fortunately, she realized my dilemma, and the trooper that she is, said, ok.

We returned home, and by the end of the week, I had an interview with a public accounting firm, and a new job. A new future!

My salary at the public accounting firm was $4,350. per  year, paid monthly. Sharon’s salary at the CIA was approximately $3,000. annually.

As I look back, we tried to save her salary and live on mine. I was going to night school at American University, taking two classes a semester, and working 50 to 60 hours a week. We had one car.

Within a year, our first child was born and Sharon became a “stay at home mom.” We were still able to manage, and in 1962 we purchased our first home in Woodbridge, Virginia. Our starter home cost $11,500., and our monthly payment of principal and interest was $95.00 a month. The same as our apartment rent had been.

I went to the internet, and surprisingly it was quite easy finding what things cost then.

In looking at costs in 1961, I found that a gallon of gasoline was $.31 per gallon. Annual inflation was running approximately 1% . Bread was $.22 per loaf and milk was $.26 per gallon.

A new car cost $2,650. and the median monthly apartment rent was $73.00. The medium home price amounted to $12,100.

The minimum wage was $1.15 per hour , and the median income was $5,700 per year. The ratio of home price to income, amounted to 2.1 to 1. At that time, mortgage lenders wanted your home to cost no more than 3 times your income.

Today the ratio of the median income to the median home price is well over 5 to 1. No wonder there is a “housing crisis.”

Other costs in 1961, were a postage stamp - $.04; a hamburger at McDonalds - $.15; a newspaper - $.05; coffee - $.74 per pound; and sugar - $.59 for 5 pounds.

Based upon inflation, $100 in 1961 is the equivalent of $1,097.00 today, or an increase of almost 11 times. Using that factor, my salary of $4,350. in 1961, would amount to $47,720. today.

The average apartment cost today is over $2,000. per month, with the amount of space generally under 900 square feet. It would be very difficult to manage a household today, with current rent amounts, and the increased costs in food and ancillary services.

The average new car price today is pushing $50,000, and monthly payments over $700.00.

The median home price today is over $400,000. One needs at least 20% down, or $80,000., to qualify for a standard mortgage . With closing costs, the amount is over $90,000.

Is it no wonder that housing is in a crisis? The interest rate in 1961 was 6% for a standard mortgage. Today, it is a little over 7%. The real issue is not the interest rate, but the basic cost of housing.

This exercise was interesting, but today is today! There is no question in my mind that prices today are too high, and  can be reduced.

However, it will take an administration that understands the concept of a “Global Economy.” Until we realize that we are no longer “an island unto ourselves,” and that we need to allow each country to produce those items that their expertise allows them to, on a cost effective basis, will we see the benefits.

As many have said, and I agree, a “Global Economy” where all countries are integrated in the results, will cause wars between countries to end, and the benefits of being integrated, to flow to all.

Jess Sweely

Madison, Virginia

October 28, 2026