Adjusting for inflation, the minimum wage today is lower than it was in 1968.
“If you’re one of the several million Americans earning minimum wage, here’s a sobering fact: Your grandpa had more spending power earning minimum wage four decades ago,” writes Life Inc’s Senior Business Reporter Allison Linn.
“Adjusted for inflation,” Linn reports, “the minimum wage was worth $8.54 per hour in 1968, according to calculations by the Economic Policy Institute. The current minimum wage is $7.25 per hour.”
And I’d be willing to bet the same trend would follow all middle and lower class wages in the US. The income inequality disparity has been skyrocketing since Ronald Reagan began slashing taxes on high-income earners in the early 1980s. Taxes either redistribute the wealth up to the rich or they spread out to the masses – our current tax system clearly is sending the money up.
Good Graph Friday: Minimum wage is worth less than in 1968. Allison Linn. November 19, 2010.