The Silent Creep of Inflation: A Six-Decade Journey Through a Changing Economy

A Childhood Rooted in Economic Simplicity

As someone born in 1960, I grew up in a world where money felt tangible, its value clear and steady. Raised on a family farm in Alexandria, Minnesota, I was taught economics early—not in a classroom, but through life. By second grade, I was learning the basics of money, counting change back to folks during small-town transactions by age seven or eight. At 12 or 13, I had my own checkbook, a rite of passage tied to selling cattle I’d raised through 4-H and beyond. Money was a tool, a means to trade value for value, and it made sense. But one thing never caught my attention back then: inflation. Today, looking back over six decades, the relentless rise of prices shocks my soul, revealing a story of greed, control, and a system that’s drifted far from the one I knew as a boy.

The 1960s: A Time of Stability and Subtle Shifts

In the 1960s, the world seemed simpler. Our family farm—150 acres of rolling, fertile land in Alexandria—was bought for $16,000. My first new car, a proud milestone, cost me less than $2,400. These weren’t just numbers; they were measures of hard work, of what a dollar could do. A gallon of gas was 25 cents, a loaf of bread under 30 cents. Life wasn’t always easy, but money held its ground. Inflation, if it was there, was a whisper, not the roar it’s become. Data backs this up: the Consumer Price Index (CPI) rose at a modest 1-2% annually in the early ‘60s, creeping to 3-4% by the decade’s end. Compare that to today, where inflation has averaged closer to 3-4% over decades but spiked to 9.1% in 2022, leaving us grappling with prices that seem to climb without end.

The Seeds of Change: From Gold to Uncertainty

As a kid, economics was practical. I learned supply and demand raising cattle, pricing them for market, and balancing my checkbook. No one talked about inflation eroding savings or wages. The dollar was tied to gold, part of the Bretton Woods system, which kept prices stable. But cracks were forming.

The Vietnam War and Great Society programs in the ‘60s pumped money into the economy, and by 1971, President Nixon cut the dollar’s tie to gold. That moment, the “Nixon Shock,” unleashed a new era. Suddenly, the Federal Reserve could print money freely, and inflation began its slow, insidious climb. The 1970s brought oil shocks and stagflation, with prices soaring—CPI hit 13.5% in 1980. My car’s price doubled, then tripled. The farm’s value ballooned, but so did costs to run it.

The Modern Era: Inflation’s Grip Tightens

Looking back, I see how inflation reshaped the world I knew. That $16,000 farm? Today, 150 acres in Alexandria might fetch $750,000 or more, based on Minnesota farmland averages of $5,000-$8,000 per acre. My $2,400 car? A basic new model now starts at $20,000-$30,000.

The dollar’s purchasing power has crumbled: $1 in 1960 is worth about 11 cents today, per CPI calculations. Wages haven’t kept pace. In 1970, the median household income was $8,730; today, it’s around $81,000, but adjusted for inflation, real buying power has barely budged for most. This isn’t just numbers—it’s the squeeze on families, the erosion of dreams.

Greed, Control, and a System Unraveled

The following video best describes how I see so much of life. Andy Schectman totally describes it well.

What shocks me most is how inflation’s roots seem tangled in greed and control. The end of the gold standard gave governments and banks a blank check to expand money supply, often to fund wars, deficits, or corporate bailouts. Corporations, too, ride the wave, hiking prices beyond costs—profit margins for big firms hit record highs in recent years, even as they blame “supply chains.” Central banks, like the Fed, aim for 2% inflation as “healthy,” but who benefits? Not the farmer, the worker, or the retiree watching savings shrink. It feels like a system designed to keep power concentrated, where debt balloons (U.S. federal debt hit $36.4 trillion in 2025) and ordinary folks bear the cost.

Why Economics Faded from Classrooms

I wonder if this is why economics isn’t taught in schools anymore—at least not the way I learned it. Back then, it was about value, trade, and stewardship. Today, financial literacy is spotty; kids learn apps before checkbooks. Maybe it’s no accident. Understanding inflation, debt, and money supply might make people question the system. My early lessons gave me a lens to see how far we’ve strayed from a dollar you could trust.

A Story Still Unfolding

The story of inflation’s rise is murky, woven through decades of policy, crises, and choices. We may never fully unwind it. But as I reflect on 60 years—from a boy counting change to a man watching prices soar—I know this: the world I grew up in, where hard work and a dollar went hand in hand, is fading. Yet, I hold onto the lessons of the farm: work hard, live simply, and question what doesn’t add up. Inflation may shock my soul, but it won’t steal my clarity.