Why Grandpa’s Coffee Cost 5 Cents (The History of Inflation)

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Let’s start with a fact that’ll make your wallet sob:
A cup of coffee in 1950 cost 5 cents.

Today? $5—plus a passive-aggressive stare if you ask for oat milk.

So… what happened? Did the beans unionize?
Not exactly.

This, my financially confused friend, is inflation.

☕ What Is Inflation, Really?

Inflation is when money slowly loses the will to live.

Or more technically:

In plain English:
The same dollar buys less and less over the years.

It’s like your money’s on a diet… and not the fun kind.

💵 A Timeline of “Oh No” Moments:

1910s:

• A loaf of bread: 5 cents

• A movie ticket: 7 cents

• Life was cheap, and so were the outfits.

1940s:

• World War II hits. Governments print money like it’s Black Friday.

• Prices start to rise—but patriotically.

1970s:

• Surprise! Oil crisis.

• Inflation goes full beast mode.

• People start using gas money to heat their soup.

1980s:

• Interest rates hit 18%.

• Owning a house? Good luck.

• Owning a sandwich? Still difficult.

2000s–Now:

• Tech boom, housing boom, everything boom.

• Wages go up... kinda.

• Prices go up... aggressively.

• You now need 3 side hustles and a rich dog just to afford rent.

🧂 So... What Causes Inflation?