The Devaluation (and end?) of the Minimum Wage

Photo by Alekzan Powell on Unsplash

Recently, Americans have had the pleasure of experiencing some phenomenal economic milestones, including the longest stock market boom and longest economic expansion in U.S. history. It’s surprising then, to learn of another economic milestone that bucks the trend of all this good news: the longest period in history without an increase in the federal minimum wage (which was last adjusted over a decade ago).

If the minimum wage had kept up with inflation, workers would be earning 17% more (about $3,000 per year) than they were in 2009. That’s 2-3 months of rent for most people. The story becomes harder to swallow when you expand the time horizon: the federal minimum wage is worth 38% less than it was in 1968, even after taking inflation into account. In other words, a minimum wage-earner in 1968 had almost 40% more money than the same wage-earner today - even though the wage-earner in 1968 was earning less real dollars.

And this is the whole problem wit…