Podcast Summary: The Morgan Housel Podcast

Episode: How We Used to Live (Levittown, Progress, and Expectations)
Host: Morgan Housel
Date: April 24, 2025

Overview

This episode explores how our perception of what constitutes an "average, decent life" has changed dramatically over the past 80 years. Morgan Housel uses the story of Levittown, post-WWII suburban America, and shifting expectations around housing, jobs, and prosperity to illustrate broader lessons about progress and nostalgia. He argues that as societal expectations evolve, what once seemed like a utopia can come to feel inadequate by modern standards—a testament to progress, even as nostalgia can cloud our judgment.

Key Discussion Points & Insights

The Limits of Perception—"New Colors" and Unseen Realities

• [01:20] Housel opens with a metaphor: recent scientific advances now allow some people to see colors most humans can't.
  • "There are literally colors in the world that our brains cannot conceive. So, of course, are there ideas and values that we are completely oblivious and unaware of?"
  • This illustrates how every individual operates with a limited understanding—there's much we cannot see or imagine, be it in science, culture, or economics.
• Most arguments, he suggests, are not about fundamental disagreements, but about people talking past each other, each viewing reality from a different, often invisible "color palette".

Nostalgia vs. Changing Standards—Levittown as the "Utopia"

• [04:20] The episode pivots to post-World War II America and the creation of Levittown, representing the height of the American Dream for millions of returning GIs.
  • The original craving for personal space stemmed from wartime and Depression-era overcrowding.
  • William Levitt pioneered the suburb, giving ordinary Americans a chance at homeownership and a new way of life.
  • The peak ideal:
    • "Leave it to Beaver" family, stay-at-home mom, kids in the yard, a white picket fence—the classic Norman Rockwell vision.
• Notable Quotes:
  • [08:45] "When we moved to Levittown, it was like a utopia. That was the only way you could describe it. A wonderland, a utopia." — Levittown resident, 1990s documentary
  • [09:40] "It was so perfect... We were expecting there to be a laugh track in the background."
  • [10:20] "This is my dream come true. I don't know what my children expect, but this is what I wanted."

Progress and Shifting Expectations—Levittown Then and Now

• [12:10] Levittown homes were utterly transformative in the '40s/'50s but are barely recognizable as "middle class" by today's standards:
  • 750 square feet, no garage, no basement, no air conditioning, two bedrooms, one bathroom.
  • Families of five or more would share two bedrooms and one bathroom.
• Nearly all original Levittown homes have been expanded or altered—except one.
  • [15:15] "People don't want to raise a family in a house that size anymore." — Mr. Schrader, Levittown homeowner, New York Times, 2007
  • Housel points out: "The world that we have so much nostalgia for in the 1950s would be considered deep poverty today."
• Contextual stats:
  • [16:00] "The median new house in the United States in 2024 was 2,157 square feet. It was three times the size of the Levittown utopia house."
  • Average lot size today is 50% bigger; homes now come with multiple bathrooms, garages, and central air.

The Moving Goalposts—Jobs and Standards of Living

• [18:00] The same shifting definition applies to jobs. Nostalgia for old manufacturing roles ignores how much standards have changed.
  • Hoover Dam reference:
    • "96 workers died building the Hoover Dam. If something like that happened today... we would have shut the whole project down."
    • "Workplace deaths in the 1950s were almost four times higher than they are today."
  • Tolerance for dangerous, demeaning work has sharply fallen—a sign, Housel argues, of real societal progress.

The Core Lesson—Progress is Raising the Bar

• [20:40]
  • "By the way, what do you call that shift in expectations? Progress is what you call it. It's wonderful."
  • Housel warns against the "siren song" of nostalgia: the urge to return to "the good old days" often ignores the reality that what was once deemed luxurious or sufficient would now be substandard.
• Today, the baseline expectation (especially among young people) is higher: bachelor's degree, six-figure job, 2,500-square-foot house, 30-year mortgage.
• On longing for the past:
  • "If you and I had a time machine and we could go back to Levittown in 1958 ... I think we would look around and say, that's the house you live in? That tiny little thing? That's your utopia?"

Final Reflection—Awareness and Blindness to Progress

• Housel points back to the opening metaphor:
  • "Everybody is a little blind to what others are going through. But more importantly ... it's easy to become blind to what we ourselves used to be in the past."
• Societal and personal definitions of success shift over time, usually upward—a phenomenon we should acknowledge as progress rather than lament as decay.

Memorable Quotes & Timestamps

• [01:57] "The idea that you and I think we can see the world ... there is a lot out there that we cannot see."
• [04:20] "What counts as a decent, dignified life today has shifted dramatically over the last 80 years."
• [08:45] Levittown resident: "When we moved to Levittown, it was like a utopia. That was the only way you could describe it. A wonderland, a utopia."
• [10:20] Long-time Levittown resident: "This is my dream come true ... I don't know what my children expect, but this is what I wanted."
• [15:15] Mr. Schrader: "People don't want to raise a family in a house that size anymore."
• [16:00] "The median new house in the United States in 2024 was 2,157 square feet. It was three times the size of the Levittown utopia house."
• [18:00] "96 workers died building the Hoover Dam ... Workplace deaths in the 1950s were almost four times higher than they are today."
• [20:40] "What do you call that shift in expectations? Progress is what you call it. It's wonderful."
• [22:00] "It's easy to become blind to what we ourselves used to be in the past, the lives that we used to live, the definition of success that we used to have."

Episode Structure & Timestamps

• [00:00-01:15] (Ad/Intro, omitted)
• [01:15-04:10] Metaphor: new colors and perceptions—how we can't see all that's around us
• [04:10-19:45] The story of Levittown, changing expectations, and documentary reflections
• [19:45-22:00] The idea of progress, nostalgia, and lessons for today

Tone and Style

Housel’s tone is conversational, reflective, and insightful. He often revisits personal anecdotes and historical narratives, uses light humor, and frames complex social shifts in accessible language.
He champions progress while empathizing with nostalgia, inviting listeners to reconsider what "the good life" really means.

Takeaway

Society's standards for a "good life" are always moving forward. What is considered average or necessary today was once unimaginable and vice versa. Housel encourages listeners to recognize this upward shift as progress, not as cause for lament or misplaced nostalgia.