Are We Really Better Off Today Than in the Past?

 

In 1957, British Prime Minister Harold Macmillan famously declared, "You've never had it so good," citing full employment, rising wages, affordable housing, and universal healthcare. But could any politician repeat such a claim today? The modern era is often described as one of economic stagnation, housing crises, rising inequality, and deteriorating public services. Yet, comparing today with the 1950s and 1960s reveals a complex picture—one of progress interwoven with fresh challenges.

Economic Growth vs. Personal Prosperity

Since 1955, real GDP per capita in the UK has increased by 300%. On paper, this suggests we are wealthier than ever. In 1960, the average weekly wage was equivalent to an annual salary of £14,000 in today’s money, compared to the current average of £36,000. However, this growth masks disparities. For example, since 2007, the UK has failed to maintain its post-war growth trajectory, leaving average earnings £1,000 lower per year than they could have been.

Additionally, while basic living standards have risen dramatically, so too have expectations. Modern goods like smartphones consolidate many older products, yet rising housing costs, student debts, and wage stagnation can make current living standards feel more challenging compared to the relative simplicity of the 1950s.

Inequality and Social Fractures

One's sense of well-being is deeply influenced by relative wealth. The post-war decades were marked by efforts to reduce inequality through progressive taxation and universal benefits. By contrast, the 1980s ushered in an era of growing income and wealth inequality that persists today, further exacerbated by austerity measures.

Despite significant progress in technology and lifestyle, social challenges have shifted. For instance, rising wealth inequality has meant that home ownership, once within reach of most working families, is increasingly dependent on inherited wealth. This has created a sense of generational unfairness, where younger people struggle to match the achievements of their parents.

The Evolving Role of Work

The nature of work has transformed drastically. Labor-saving devices have liberated many from the drudgery of manual household chores, boosting women's participation in the workforce from 39% in 1951 to 72% today. However, the shift from stable industrial jobs to gig-economy roles like delivery services has fractured traditional working-class communities. While coal mining was dangerous and physically taxing, it fostered camaraderie and pride—qualities harder to find in today’s more isolated, flexible job market.

Housing: A Growing Crisis

The housing market epitomizes the struggles of the modern era. In the post-war period, house prices were just three to four times the average income, making homeownership widely accessible. Today, that ratio has ballooned to eight times income, putting homeownership out of reach for many without family assistance. The decline in affordable social housing compounds this issue, contributing to record homelessness levels.

The Cost of Longevity

Improved healthcare and sanitation have increased life expectancy from 67 in 1950 to 82 today, alongside a dramatic reduction in infant mortality. While this is a remarkable achievement, it also presents economic challenges. Aging populations place increasing pressure on public finances, contributing to rising taxes and strained public services.

Education: Opportunity at a Price

Higher education has seen a significant democratization, with university attendance skyrocketing from 23,000 women in 1952 to 1.6 million today. However, this comes at the cost of tuition fees, leading to average student debts exceeding £45,000. For young adults balancing debt repayments with housing costs, these financial burdens can feel insurmountable.

Transportation and Connectivity

Transportation has become more accessible, with car ownership rising from 30% in 1961 to 78% today. Fatalities from road accidents have plummeted, thanks to seat belts, better car designs, and stricter speed limits. However, public transport costs have risen faster than inflation, and ambitious infrastructure projects like HS2 face delays and ballooning costs.

Environmental Progress and Challenges

The post-war era was plagued by visible environmental problems, such as the deadly Great Smog of 1952. Legislative actions like the Clean Air Act of 1956 led to significant improvements in air quality. While CO2 emissions have declined due to reduced coal use, modern pollution from nitrogen oxides and other sources continues to affect public health.

A Sense of Community: Lost or Evolved?

Increased mobility and technology have connected the world but fragmented local communities. Traditional gathering points, like public washrooms or workplace unions, have given way to online interactions. While these changes have boosted productivity and convenience, they have also eroded communal bonds that were once integral to daily life.

Are We Better Off?

The answer depends on perspective. Objectively, we have more material wealth, better health outcomes, and access to conveniences unimaginable in the 1950s. Subjectively, however, rising inequality, housing crises, and the erosion of community connections create a sense of dissatisfaction. As we navigate the complexities of modern life, the challenge lies in balancing technological and economic progress with social cohesion and fairness.