Economic Policy Institute: Minimum Wage On The Decline Due to Inflation
Do you get the feeling that minimum wage just doesn't go as far as it used to?
According to the Economic Policy Institute (EPI), the inflation adjusted minimum wage of 1968 was much higher than the current minimum wage of $7.25.
According to the EPI, the inflation adjusted national minimum wage in 1968 was $8.54. This works out to $1.29 more than the current minimum wage in the country.
The EPI points out that the inflation adjusted minimum wage bottomed out at $5.48 per hour in 2006.
The EPI also points out that the additional purchasing power created by an increased in the minimum wage is usually quickly wiped away by inflation.
Source: Economic Policy Institute - The Declining Value of Minimum Wage