A new report published Thursday by the Economic Policy Institute (EPI) found the $7.25 minimum wage has lost roughly one-fifth of its value since July 2009, after adjusting for inflation.
The value of minimum wage in 2009 would be equivalent to $9.17 per hour today. Minimum wage hit its peak in 1986, according to EPI, as it would be worth $11.12 in today’s dollars.
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“That’s a really remarkable finding, that more than 50 years ago we paid the lowest wage workers in this economy substantially more than what we pay them today,” Ben Zipperer, an economist at EPI, told Newsweek.
“Maybe the minimum wage hasn’t changed, but the cost of living has increased over that period,” Zipperer added. “It’s more expensive to pay rent, it’s more expensive to buy food and it’s more expensive to pay for healthcare.”
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Zipperer noted the United States has the economic capacity to pay employees higher wages but has primarily only done so for those who are already at the top of the wage distribution.
“But for a low-wage worker that essentially means that you can’t afford a decent standard of living,” he said.
He added, “A single adult with no kids is going to need at least a $15 an hour job today in order to afford basic necessities like rent, food, transportation expenses and taxes.”