Federal Minimum Wage Vs Inflation, The Federal Minimum Wage Doesn T Really Matter Anymore Wsj

When president franklin d.

Minimum wage in california 2019. A minimum wage of 24 an hour would mean that a full time full year minimum wage worker would be earning 48000 a year. The light blue line starts with 1968 the year the current value of the federal minimum wage peaked at 990 adjusted to. In 1979 only two states did.

There are two common ways to achieve this. Minimum wage is determined both by the us. Adjusted for inflation that would be worth about 445 today.

Raising the minimum wage has been attacked on at least two fronts. Usafacts explores who earns the minimum wage how itx27s changed over the years and how laws differ across states and even cities. Congress and your states legislature.

To equal the purchasing power of the minimum wage in 1968 1069 the current minimum wages real value 725. Today 29 states have minimum wages above the federal level. The latest reading for june 2018 is 251989.

The federal minimum wage in inflation adjusted 2018 dollars has fallen from 999 per hour in 1979 to 725 in 2018. The federal minimum wage was last increased effective july 24 th 2009. The cpi index stood at 215351 in july of 2009.

The red line shows the actual minimum wage adjusted to 2017 dollars. Bureau of labor statistics calculates the earnings series2 and the cpi w3 the peak value of the minimum wage in real terms was reached in 1968. The index has increased 36638 points since the last minimum wage increase or about 17.

Minimum wage was enacted in 1938 through the fair labor standards act to counteract the fallout of the great depression and was designed to help create consistency in consumer buying levels by giving them a baseline of income. If the minimum wage were indexed to inflation the minimum wage would now stand at 848. It is worth considering what the world would look like if this were the case.

Roosevelt signed americas first federal minimum wage into law in 1938 it was 25 cents per hour. Since the inception of the federal minimum wage. The inbalance of wages and inflation.

Adjusted for inflation the federal minimum wage is worth less than 50 years ago published thu jul 21 2016 1225 pm edt updated mon jul 25 2016 445 pm edt kate rogers atkaterogers. Proponents of a higher minimum wage want to change all this by locking in wage increases for future years.