The Economic Side of “Home Alone” (updated)

Having just watched Home Alone again, I wanted to share an updated version of last year’s post.

Now, even more than a year ago, the film displays the massive economic leap we have taken during the past 34 years.

Home Alone Economics

For everyone who, like me, had not seen Home Alone, the story is about a 8-year-old whose family (inadvertently) leaves him home alone. Late for the airport, they rush out without realizing he was not with them. Running to the gate, they just make the plane to Paris. During the flight, Kevin’s horrified mom realizes her oversight. There is so much more but I don’t want to spoil it.

In theaters before the first Smartphone, Home Alone is a 1990 film. As a result, mobile calls came almost entirely from car phones (similar to the phone on the left). While we got the first truly functional portable phone in 1989 from Motorola (on the right), few of us had one:

In Home Alone, calls came from landlines and pay phones. There was no internet, no texting, no email. In Paris, the only way to call Chicago from the airport was on the pay phone. Furthermore, the family (actually two brothers’ families), had no security check. So, having overslept, they could run from the departures entrance onto the plane. In addition, the state-of-the-art video shown in the film was the VCR into which Kevin inserted a video tape.

As for pizza delivery, instead of DoorDash there was the pizza delivery man from the local pizza place. Whereas the pizza that Kevin ordered was $11.80, now, the U.S. national average is $18.33 for “indie” establishments. Below, the “Slice of the Union” report listed average “Indie” pizza pie prices for U.S. states (2023) and their 12-month change. In Illinois, where Home Alone’s Kevin lived, at $21.98, the pies were among the most expensive:

Our Bottom Line: Economic Growth

Among economist Robert Solow’s (1924-2023) countless contributions to economics during his 99 years, his ideas about technological innovation could be #1.  Focusing on economic growth, in addition to an increase in labor and the accumulation of capital, he proved that technological progress plays an important role. Or, referring to developed economies, Dr. Solow said, “It turned out that by far the largest contribution came from something that can’t be explained by population growth, a labor supply increase or a growing stock of equipment. The largest contribution comes from technological innovation.”

Economic growth trended upward since Home Alone in 1990:

At econlife, we detailed what Dr. Solow might have meant when he referred to the products and processes that fuel technological innovation.

However, through Home Alone, we see the difference in our daily life.

My sources and more: Yesterday, I watched Home Alone again and remembered last year’s post. Also, I recommend using the BLS inflation calculator to compare the 1990 $11.80 pizza price to today’s. It appears that pizza prices have not kept up with inflation.