How a 1990s magazine ad predicted the depressing cost of modern living
- It said a burger and fries could cost $16 and a basic car might be $65K by now
- The ad’s warning is especially prescient given that millions say they can’t retire
A magazine advertisement from 1996 has gone viral online for its scary accurate depiction of the inflation-ridden economy the US is facing at the moment.
‘They say in thirty years a burger & fries could cost $16, a vacation for $12,500, and a basic car for $65,000,’ reads the ad.
These predictions were made by the Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF) in an ad they paid for to warn people about inflation eating away their investments.
‘Granted, sitting around the house may not be your idea of the perfect retirement. But what’s your choice when inflation is slowly but surely eroding the value of your nest egg?’ the ad asked.
The choice the ad was offering, of course, was to invest with TIAA-CREF, but judging but the looks of things today, people aren’t close to outpacing inflation.
A 1996 ad from a magazine that predicts the prices of a burger and fries, a vacation and a car.
The AARP released a dire poll last month that 20 percent of Americans over 50 years old have no retirement savings and that more than half are worried they won’t have enough to retire on.
‘Far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,’ said Indira Venkateswaran, AARP Senior Vice President of Research.
‘Everyday expenses continue to be the top barrier to saving more for retirement,’ she added.
Again, TIAA and CREF were sounding the alarm 28 years ago, proving that record inflation during the COVID-19 era wasn’t the first time Americans were concerned with runaway prices.
The ad itself really does come close to the sticker shock modern-day Americans deal with on a daily basis.
Five Guys fast-food chain in Ithaca, New York. The burger joint is often accused of being way to pricey for a fast-food chain
And the proof is in the receipt, a person spent a whopping $24.10 at a Five Guys for a bacon cheeseburger, an order of fries and a soda
If you’re looking to get a burger and fries at a sit-down restaurant, $16 is a pretty common price in many areas in the country. Fast food burger combos are usually cheaper with some glaring exceptions.
In March of this year, someone posted a receipt from Five Guys showing that a bacon cheeseburger, a regular soda and a small order of fries cost $24.10.
Taking out the drink – which leaves just the burger and the fries – the pre-tax total is $17.68, so pricier than the 1990s ad ever could have imagined.
When it comes to vacations, the ad is also quite prescient.
It didn’t specify how many people were going on this hypothetical trip 30 years in the future, but if a family of four is planning to go to say, Europe, for a week or two, they’d be hard pressed not to spend at least $10,000 between flights, hotels and activities.
A Toyota Sequoia will set you back more than $73,000, and that’s just the base model
Toyota Sequoia Capstone Hybrid is pictured at a dealership
The ad suggested that a ‘basic car’ would cost $65,000 in 2026.
It’s 2024 now, and even though the average new vehicle costs $47,244, it isn’t hard for consumers to add thousands of dollars to the MSRP with the many warrantees dealerships offer and additional features such as navigation and heated seats.
Plus, many SUVs and pick-up trucks are often seen at or above that $65,000 price tag.
Look no further than Toyota, which is supposed to be one of the more affordable car makers. The 2024 Sequoia has an MSRP of $73,865, over $8,000 more than what the ad envisioned.
When simple meals, vacations and cars cost this much, the 1996 ad’s ending line hits all that much harder.
‘No problem. You’ll eat in. You won’t drive. And you won’t go anywhere.’
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