Topline
As inflation skyrockets, the federal minimum wage – which has remained at $7.25 per hour since 2009 – has reached its lowest value in 66 years, according to a report from the Economic Policy Institute.
Activists appeal for a $15 minimum wage near the Capitol in Washington, Thursday, Feb. 25, 2021. (AP … [+]
Key Facts
The 13-year gap since the minimum wage was last increased is the longest time without a hike since it was established in 1938, the report said.
In 1956, the federal minimum wage was 75 cents, or $7.19 today, it said.
Congress stalled last year on plans to increase the federal minimum wage to $15, deciding not to include it in the $1.9 trillion coronavirus relief package.
The report’s analysis is based on June’s Consumer Price Index data, which was released this week and showed that the costs of consumer goods rose by 9.1% from the same month last year.
The federal minimum wage hit its peak value in 1968, at $12.12 in today’s currency, the Economic Policy Institute said.
Key Background
According to the Economic Policy Institute, 30 states and nearly 50 cities have put in place minimum wages higher than the federal mandate, topping out at $15 in California and $16.10 in Washington, D.C.
Further Reading
High inflation leads federal minimum wage to reach lowest value since 1956, report finds (CNBC)
The Case For A Reimagined Minimum Wage (Forbes)
Raising The Minimum Wage Hurts The Most Disadvantaged (Forbes)
Source: https://www.forbes.com/sites/juliecoleman/2022/07/15/inflation-pushes-federal-minimum-wage-to-lowest-value-since-1956-report-finds/