Is the federal minimum wage today low by historical standards?
·August 12, 2021
Yes
The federal minimum wage is currently $7.25. Accounting for inflation (using the Personal Consumption Expenditure Index), the real value of the minimum wage peaked in February 1968 at $1.60, which is about $9.70 in May 2021 dollars. The value of the minimum wage since 1968 has eroded due to the fact that wage increases have not kept up with inflation. At the current value of $7.25, a single parent working 40 hours and 52 weeks per year would still be earning under the poverty line.
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Sources:
EconoFact Do Minimum Wages Really Kill Jobs?
FRED (Federal Reserve Bank of St. Louis) Federal Minimum Hourly Wage for Nonfarm Workers for the United States
FRED (Federal Reserve Bank of St. Louis) Personal Consumption Expenditures: Chain-type Price Index
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