Journal Entry 8/29/2026
As we continue to celebrate America’s 250th Birthday, let’s remember the best of times and the worst that shaped America’s way of life during the 1980s.
Leadership: Beginning with Presidential Leadership, Ronald Reagan, former Governor of California and Actor, defeated President Jimmy Carter in a landslide victory. The population of America was growing leaps and bounds. Reagan served as President from 1981 to 1989. The 1980 Census reported the U.S. population reached 226.5 million, with California surpassing 20 million residents for the first time in history.
Technology was making headlines in 1981 when IBM became a symbol of the personal computing revolution. IBM was one of the largest employers in America. Schools of Higher Education taught Computer Science, Computer Operations, Computer Programming, and more. Students of all ages, including myself, were learning.
Adult Learners, such as I learned beginning in 1986 Computer Programming: Basic, Fortran, dBase, Microsoft Computers for Business, and Cobol. One single mistake in programing could wipe your progress, without retrieval.
As needs for computer use grew, so did the cost. Students spent days and nights in Computer Labs until they closed or were forced to purchase their own Personal Computer. Between 1980 and 1989 computers ranged from under $300 for entry-level models to $5,000 or more for high-end business systems, with many mid-range home computers costing between $1,000 and $3,000, not including printers, toners, and extended warranties. The Commodore VIC-20 aimed to please most family budgets. But when Apple Macintosh marketed a Personal Computer, at $2,500 in 1984, including a graphical user interface and mouse, many people who needed the PC paid with credit cards. Consumers learned, buying a new PC every other year was typically to be expected.
Gifts. For stress busters, Walker Sony became one of the hottest gifts for birthdays, graduation, and Christmas gifts, along with Cassettes, Mixed Tapes, and Boomboxes.
Couch Potatoes: People were flooding into Block Busters to rent movies. Popular movie rentals included Disney Movies, The Karate Kid, Ghostbusters, The Goonies, Beverly Hills Cop, Back to the Future, and Top Gun. But the highest grossing Movies of the 80s (worldwide) was E,T. the Extra-Terrestrial.
Social Movements - taking root in America gained excessive popularity with Live Aid Concerts. Charity events were used to raise money for famine in Ethiopia. Widely credited was David Bowie, organized by Bob Geldof. The most memorable contributor was Queen who prepared for their historic 20-minute set. Overall, more than $126 million dollars was raised for A.I.D.S.
Housing Challenges & Problem Solving changed the Housing Market. The Mortgage Market saw record-breaking high interest rates at 18%. The shift from traditional fixed-rate loans to adjustable-rate mortgages (ARMS), consumer affordability, deregulation, and the Savings & Loan debacle, were the worst of times. People who chose ARMS faced sudden, unexpected, and an unaffordable jump in payments when rates were higher than what homeowners could afford.
Major contributors to the S&L Crises included:
- Mortgage Rates peaked above 18%
- Alternate Financing, also known as “creative financing,” i.e., seller-financed loans or adjustable-rate mortgages implemented to complete a sale.
- The Federal Reserve aggressively raised interest rates to stop sever runaway inflation driven by global oil crises and government overspending.
- Lower income buyers struggled the most and were the hardest hit.
Comparing the Mortgage & Market Shifts to 2026 – In 1980, a typical home cost about 2.5 times a yearly salary. Today’s ratio has doubled to over 4.5, or more than 6 times income, depending on location and where people live. Mortgage rates peaked near 16% or 18%, compared to today’s 6%-7%. Buyers could refinance when rates dropped. Down payments in the 1980’s were about 60% of a median yearly income compared to today’s 20% down, which often exceeds an entire year’s median household income. During the 1980’s, a single-income household was more common than in 2026. A second income boosts affordability. The average first-time buyer in the 1980s was about 29 years old; today more adult children are living with their parents and/or don’t buy until they are in their 30+ years. Many people are choosing rentals today. Today’s buyers buy bigger homes with more luxury items than were available in the 1980’s.
Preventable Measures were implemented between 1986 and 1995: 1) Closures of insolvent institutions. 2) 1,043 S&Ls were closed or resolved. 3) In 1989 Congress created the RTC (Creation of Resolution Trust Corporation) to take over failed S&Ls, sell their assets, and wind down operations. 4) Congress passed the Financial Institution Reform, Recovery, and Enforcement Act which abolished the FSLIC, strengthened oversight, raised capital requirements, reorganized the regulatory structure for thrifts, reformed accounting rules, and consumers became more informed and wiser.
Take-Away. We are stronger when we are weak when we admit our limitations, stay educated, remove our pride, have faith in God over government, build stronger, more trustworthy relationships, and seek guidance when support is needed.
Comments(23)