I am sure that the majority of the people who are regulars on this forum were a child in the 80s. Most of us only lived through the most prosperous time in U.S.‘s history. I am really curious to hear from people who lived through the 1970s in the U.S. Was it possible to invest in foreign equities back then? Was it easy to buy stocks back then? Were 16% mortgages rates considered a norm. Did Americans put down a bigger down payment for their houses? What was the typical american’s lifestyle and mind set like seeing the inflation get out of control and seeing the U.S. currency decline against foreign currencies. Did anyone ever experience food storage in places like Absertsons or Ralphs? I have a genuine curiousity of anyone who lived through this extraordinary time in the U.S.

Panda

My parents bought a lot of real estate in the ‘70’s. Our first house was a lease option that my mom somehow managed to get a little bit of money out of and then we moved to another house. Back then it wasn’t rare for owners to carry seconds and sometimes even firsts. I’ve actually seen a few of these again lately. I’m not sure where they got the money to buy the other houses, but it seemed that we always had 2 to 3 other properties. I’ll have to ask her how all this was financed.

I remember investing in stocks in the early ‘80’s with my dad. I can’t believe that you had to wait until you got the morning paper to see the share price close the previous day and that we used to go to the Dean Witter Reynolds office to make the trades. You also went into the bank to make your deposits and kept all the cash
you would need for the week.

The biggest thing I remember about life back then is that there wasn’t so much stuff. The consumerism started to really kick in in the 80’s, but nothing like it is today.

Yes, turning the TV channel knob stem with a pair of plier. Kids were slimmer then because they had to get their butt off the couch to change the channels. Kids also got their exercise adjusting rabbit ears and holding on to the tin foil as human antenna. My TV had a turntable and an 8 track player built in at the top of the TV. I am giving away my age.

Gas in 1973 was 29 cents and the gas station attendant pumped gas, cleaned all my windshields front sides and rear, checked my oil, inflated tires to proper pressure, free NFL mug, and a page of blue chip stamps.

House was $36,000 in 1973

Bought another house in 1979 for $198,000 at 17% interest rate during the Carter era.

Irvine was not Mediterranean and pink.

Lions were free to roam by 405 and Sand Canyon.

Cows were seen along the side of freeway in Irvine.

Graph was conceived by his billionaire father.

Chinese really did shop in Chinatown.

Blue chip stamps! I completely forgot about those.

I was a very small child but I do remember (or know) a few things:
1. My construction worker father and stay at home mom bought their own home in a decent neighborhood in Costa Mesa. 
2. They did not put 20% down even though that would only have been $3,600 and the interest rate was 16%.
3. My dad’s union job was good, with great benefits, it all blew up when the union dismantled in the 80’s.
4. My parents, I believe were in on the beginning of the “house as a credit card” group. They continually pulled equity from the home to improve, later in the 80’s they pulled equity to pay the bills. All of this left them with very little equity when the house sold.

Of course, I remember other things about the culture, prices and habits of the times, but I don’t think those things address your questions. I also believe that stock market investing was more for the wealthy back then than it is today.

During the 70’s America was similar to 2008 in many ways.

The shortage of gas and energy crisis fueled the panic craving of consumers. American car manufacturers known for muscle cars began manufacturing many compact fuel efficient cars. Ford Pinto, AMC Pacer, Ford Fiesta, Chevy Chevette, Dodge Omni, and Plymouth Horizon. All of these cars belong to the hall of shame. Japanese during 1973 introduced a brand to the U.S. of mini cars relatively unknown to the consumers. It was cheap and fuel efficient. The Honda Accord and Toyota Corona were similar in size to the Smart Car of today. Yugo was the cheapest small car then for $1800. Small cars also quickly faded in several years.

Solar Energy was a big topic during the 70’s crisis so builders incorporated photovoltaic cell collectors on all south facing roofs. Most of the technology was driven by trend and the homes with energy technology pride themselves with catchy marketing phrases compared to “Granite countertop or Stainless steel appliances” that we are using today. When the technology frenzy began to fade homeowners had to deal with the ugliest rusted inoperable solar panel left on the roof. Some homes as a remnant from this era still could be seen from Culver directly across the street from Cal Pac’s Mericourt north of the I-5 freeway. The entire back roof of houses are missing because the builders thought the solar panels will remain there forever and did not bother building a real roof.

Discount by volume and membership shopping was big. Chain Supermarket like Safeway, Alpha Beta, and Luckys were everywhere. Fedco, Gemco, Best Products, and Federated were the big box merchants families shopped. Bookstores were not popular at all as most people frequented the libraries. Crown Books and D. Dalton were the only 2 that really existed back then and they mostly sold bargain useless books that rank as high as fruitcake during Christmas.

As we see the need of energy conservation today everyone now is doing exactly the same thing from the 70’s. This trend is certainly endorsed by local government with tax incentive and by a Nobel Prize winner.  I hope this time it is here to stay and not just a faded trend that gave the 70’s such a bad era. The biggest problem I see in technology is consumers constantly chasing the latest gadgets. It is ok if it is a personal portable electronic but a permanent fixture like a large panel of solar panels mounted on a home is not so easy to replace or upgrade. History comes in and out of cycle and this time around going Green made popular by celebrities and PR marketing may stay with us for a longer period.

A panel solar system will cost 25-30k and how many years will one stay in the same house to break even with the initial cost. Assuming monthly energy bill is around $80 and it will take 375 months or 31 years to pay off by then an obselete piece of technology. The economic at this time do not work for the consumers and certainly not among the IHBers whose sole reason being on this board is to save money.

bkshopr - 22 August 2008 12:16 PM

During the 70’s America was similar to 2008 in many ways.

The shortage of gas and energy crisis fueled the panic craving of consumers. American car manufacturers known for muscle cars began manufacturing many compact fuel efficient cars. Ford Pinto, AMC Pacer, Ford Fiesta, Chevy Chevette, Dodge Omni, and Plymouth Horizon. All of these cars belong to the hall of shame. Japanese during 1973 introduced a brand to the U.S. of mini cars relatively unknown to the consumers. It was cheap and fuel efficient. The Honda Accord and Toyota Corona were similar in size to the Smart Car of today. Yugo was the cheapest small car then for $1800. Small cars also quickly faded in several years.

Solar Energy was a big topic during the 70’s crisis so builders incorporated photovoltaic cell collectors on all south facing roofs. Most of the technology was driven by trend and the homes with energy technology pride themselves with catchy marketing phrases compared to “Granite countertop or Stainless steel appliances” that we are using today. When the technology frenzy began to fade homeowners had to deal with the ugliest rusted inoperable solar panel left on the roof. Some homes as a remnant from this era still could be seen from Culver directly across the street from Cal Pac’s Mericourt north of the I-5 freeway. The entire back roof of houses are missing because the builders thought the solar panels will remain there forever and did not bother building a real roof.

Discount by volume and membership shopping was big. Chain Supermarket like Safeway, Alpha Beta, and Luckys were everywhere. Fedco, Gemco, Best Products, and Federated were the big box merchants families shopped. Bookstores were not popular at all as most people frequented the libraries. Crown Books and D. Dalton were the only 2 that really existed back then and they mostly sold bargain useless books that rank as high as fruitcake during Christmas.

As we see the need of energy conservation today everyone now is doing exactly the same thing from the 70’s. This trend is certainly endorsed by local government with tax incentive and by a Nobel Prize winner.  I hope this time it is here to stay and not just a faded trend that gave the 70’s such a bad era. The biggest problem I see in technology is consumers constantly chasing the latest gadgets. It is ok if it is a personal portable electronic but a permanent fixture like a large panel of solar panels mounted on a home is not so easy to replace or upgrade. History comes in and out of cycle and this time around going Green made popular by celebrities and PR marketing may stay with us for a longer period.

BK, you are like a walking encyclopedia? How in the heck do you know so much about EVERYTHING???

My work is diverse and requires a global understanding of our retail market. Trend and history are element of importance in product conception. Consumer ethnicity research helps to differentiate products develop for the Far East and the West.

bk, impressive as always.

I remember sitting in the station wagon with my Mom while we waited over an hour in line to get gas.  We were only able to get gas on Tuesdays. 

I also recall eating a LOT of chicken.  I had chicken burnout for many years after that…..

We only went out to eat maybe once a month, and that was to a pizza parlor or a cheeseburger joint….but boy, what a treat !  Once in awhile Dad would surprise us with ice cream sundaes from the local dairy farm.  I tell you, it was a simpler life back then.

And we had H&S;Green stamps in CT.  Those were highly prized….in the days before coupons.

1969

A panel solar system will cost 25-30k and how many years will one stay in the same house to break even with the initial cost. Assuming monthly energy bill is around $80 and it will take 375 months or 31 years to pay off by then an obselete piece of technology

Always better ROI in insulating to R-bazillion before trying something exotic like PV.

As for life in the 70’s, I was just a tot but I plainly remember my elders fretting over gas prices.  My biggest concern was watching $0.79 Matchbox cars go to $1.30 roughly ten cents at a time over the course of a year or so.  I was only five and “inflation” was well embedded in my vocabulary.

BK posted on Ten’s behalf:

Here is a picture of me and my 10 girlfriends I can’t remember much. I think my 70’s looks like this:

Thanks to all of you who posted. I was getting a little worried as no one wrote anything about this topic for four days. Panda’s family immigrated to the U.S. in Feb of 1981, and I have only lived and experienced most the prosperous and golden years of this great country.

I heard that in the late 70s ( 1978 - 1980) the Saudis cut the oil supply and Americans started to panick. There were cars in lines in order to get gas. I also read somewhere that there was food shortage in the U.S. and Americans started to hoard food in advance? Did this really happen? Did anybody live through this? Please share your experience what it was like?

A panel solar system will cost 25-30k and how many years will one stay in the same house to break even with the initial cost. Assuming monthly energy bill is around $80 and it will take 375 months or 31 years to pay off by then an obselete piece of technology. The economic at this time do not work for the consumers and certainly not among the IHBers whose sole reason being on this board is to save money.

Whether or not solar panels really catch on will be dependent on the government. If the current rebates and subsidies remain in place and a carbon tax is instituted those roof top solar installations will begin to pencil.

PANDA - 22 August 2008 03:06 PM

Thanks to all of you who posted. I was getting a little worried as no one wrote anything about this topic for four days. Panda’s family immigrated to the U.S. in Feb of 1981, and I have only lived and experienced most the prosperous and golden years of this great country.

I heard that in the late 70s ( 1978 - 1980) the Saudis cut the oil supply and Americans started to panick. There were cars in lines in order to get gas. I also read somewhere that there was food shortage in the U.S. and Americans started to hoard food in advance? Did this really happen? Did anybody live through this? Please share your experience what it was like?

Gas lines yes but food shortage no.

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QH Renter - 22 August 2008 03:14 PM

A panel solar system will cost 25-30k and how many years will one stay in the same house to break even with the initial cost. Assuming monthly energy bill is around $80 and it will take 375 months or 31 years to pay off by then an obselete piece of technology. The economic at this time do not work for the consumers and certainly not among the IHBers whose sole reason being on this board is to save money.

Whether or not solar panels really catch on will be dependent on the government. If the current rebates and subsidies remain in place and a carbon tax is instituted those roof top solar installations will begin to pencil.

May be.

I focus-grouped numerous potential home buyers and they all love the idea of going Green. As soon they heard the $30k solar panel option no one went for it. They would rather spend it on a granite countertop or to buy more house with $30k. Who would want to spend $30k up front and live in the house for 5 years?

This home was built in 1967, so do you think they regret all those ugly panels?

BTW, the reason how I found this home is the home next door, at the top left in the picture, is in foreclosure. It is beautiful too. But, probably fails BK’s feng shui test in some way, if the solar panels next door don’t already.

Never heard of, or experienced a food shortage. Man, I’d love to see what those kids look like today (if they are still alive)!

tmare - 22 August 2008 04:34 PM

Never heard of, or experienced a food shortage. Man, I’d love to see what those kids look like today (if they are still alive)!

The gas shortage only lasted a couple years, after that it was pretty much back to normal.

I was in college in the 70’s and I remember sometimes after pulling an all night-er we would pile into the car and drive to Vegas for the $1 buffet breakfasts.  Do you believe that.  Gas was so cheap college kids could drive to Vegas just to eat!

alan - 22 August 2008 05:54 PM

The gas shortage only lasted a couple years, after that it was pretty much back to normal.

I was in college in the 70’s and I remember sometimes after pulling an all night-er we would pile into the car and drive to Vegas for the $1 buffet breakfasts.  Do you believe that.  Gas was so cheap college kids could drive to Vegas just to eat!

Heh, what I can’t believe is that the 20 or 30 person-hours it took to get there and back was worth so little next to cheap gas and $1 breakfast!

I remember as a wee little dude asking my mother what inflation was.  After she explained it I thought for a few seconds, and then told her that all we had to do to beat the problem was to buy several years worth of whatever we needed, then just sit back and enjoy the savings from my shrewd strategy.  I was quite proud of my five-year-old self. 
My early memories include an Olds 442 that was parked in the garage until I was about 7, but which was never driven.  My father, convinced that such a gas guzzler would never be worth anything, pretty much gave it away.  The car guy in me cries a little bit each time I think about it.

I was in college during the ‘70s. 

Stroh’s Beer was sold in long-neck returnable bottles for $4.88 per case of 24.  Oil peaked at about $40/barrel.  My five years of graduate school were paid for by the energy shortage of 1973.  The government funded lots of research projects on alternative energy and energy conservation.  As a graduate student, I worked on one of these—and by 1980 some technologies were in the full-scale construction or demonstration phase.  My first job after graduation was for an environmental consulting firm in Portland, Maine in the fall of 1979.  Gasoline was short that year, also, so fewer tourists made it up to Maine.  Live lobster was $0.89 per pound in the grocery store.  Cheaper than hamburger, which had to be trucked in from far away. 

All of the alternative energy programs fell by the wayside in the late 1980s when oil prices fell back down to $10.00 per barrel.  People forgot the gas lines, inflation, econo-box cars, and high fuel prices.  Importing oil from unfriendly countries didn’t seem to be a big deal.

\rant on
In the early 1980s, I worked on the design and construction of a large oil pipeline to transport 300,000 bbl/day of crude oil from the California coast above Santa Barbara to various U.S. refineries between here and Houston, where the pipeline ended.  There was even a proposal to build a new refinery southwest of Phoenix.  A heated pipeline was the most efficient and safest means of transporting the oil to market.  That pipeline was completed in about 1986.  It employed thousands of construction workers during the recession of the early ‘80s.  It was funded entirely by $1.4 Billion in private investment, not government pork barrel projects.  In our “wisdom” of the time, we Californians then decided NOT to permit additional off-shore oil drilling.  No oil development—therefore no oil to pump in the pipeline.  The pipeline closed and was abandoned.

Who was it that said that people who forget the past are bound to repeat it???  When I see all the news about our current energy problems, and the fact that any proposed solution is decades in the future, I want to scream!  When I hear about our state legislators being unable to devise a balanced budget, I imagine the amount of oil royalties the state would be collecting from off-shore oil production, and I want to scream some more. 
\rant off   I’ll go take a pill now and calm down…

PANDA - 17 August 2008 05:28 PM

I am sure that the majority of the people who are regulars on this forum were a child in the 80s. Most of us only lived through the most prosperous time in U.S.‘s history. I am really curious to hear from people who lived through the 1970s in the U.S. Was it possible to invest in foreign equities back then? Was it easy to buy stocks back then? Were 16% mortgages rates considered a norm. Did Americans put down a bigger down payment for their houses? What was the typical american’s lifestyle and mind set like seeing the inflation get out of control and seeing the U.S. currency decline against foreign currencies. Did anyone ever experience food storage in places like Absertsons or Ralphs? I have a genuine curiousity of anyone who lived through this extraordinary time in the U.S.

Panda

I was in elementary school through 79 in suburban L.A. I grew up in a Leave it to Beaver neighborhood with dual working parents bringing home good money for those times. We never saw any shortages, though oil prices had an effect on employment later in the decade. I had a key to my hosue and from 4th grade either walked 3 blocks to take a school bus or met up with friends and walked ~1 mile through neighborhoods to school. It was very safe then, and no one worried about 9 year old kids doing such a thing. Star Wars and Kiss were huge. “Disco Sucks” was a motto that defined a racial divide in the public schools I attended. LA had awesome radio. KLOS and KMET (now The Wave ugh!) found new competition late in the decade with KROQ and their “New Music” format. Racing home after school to watch Dodgers-Yankees World Series. Drive-ins were big. The most popular youth sport by far was Little League. USC was dominant and UCLA was very good. Maybe Ricky boy can get them back there someday.