• whotookkarl@lemmy.world
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    25 days ago

    I think the common sentiment is that minimum wage should be rated annually tied to a major factor on how much spending power that money has like inflation or productivity.

    Minimum wage started in 1938 at $0.25. if it kept up with inflation today that would be $5.59, which is far from enough to survive with even the most basic rent and groceries.

    “”" The dollar had an average inflation rate of 3.68% per year between 1938 and today, producing a cumulative price increase of 2,136.18%.“”"

    https://www.in2013dollars.com/us/inflation/1938?amount=0.25

    Productivity however has decoupled from wages decades ago, here’s the EPI graph most reference:

    If we re-coupled those values for minimum wage today that would be much higher. 3 years ago CBS reported it would be about $26: https://www.cbsnews.com/news/minimum-wage-26-dollars-economy-productivity/

    Where did that money go instead of paying fair wages?