U.S. Minimum Wage Lower Than in LBJ Era Needs A Raise

[marmar]

(Bloomberg) Here’s an unhappy observation about the minimum wage: Congress last increased the rate in stages in 2006, topping it out at $7.25 an hour in 2009, or $15,080 a year.

That amount, when adjusted for inflation, is actually lower than what a minimum-wage worker earned in 1968 and is too meager to offer anyone the chance to climb out of poverty, let alone afford basic goods and services.

About 10 states are now considering raising the rate, and Senator Tom Harkin, an Iowa Democrat, is proposing to increase the federal rate in three increments to $9.80 an hour in 2014. Many of the initiatives under consideration would smartly tie the minimum wage to the cost of living, meaning that those workers’ wages would finally keep up with inflation.

The past recession was brutal on jobs, household wealth and economic growth. But wages were hit hard, too. Real average hourly earnings have fallen below the level of 2009. Although wages often lag job growth after a recession, the pace of income gains this time around is far slower than in previous recoveries. ..................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-04-16/u-s-minimum-wage-lower-than-in-lbj-era-needs-a-raise.html

[xchrom]

1. Du rec. Nt

[On the Road]

2. Even When I Was a Young Republican in the 70's I Supported a Higher Miminum Wage

No one who has had to actually live on those wages can think that $7.25 is acceptable. 40 hours a week less than $1,000 a month after taxes. You can hardly find a place to live for that little. In the absence of widespread unionization, the minimum wage should be a primary means of economic leveling and supporting the bottom 20%. As it is, it's an afterthought used only to eliminate the worst abuses.

The minimum wage can't be increased too much (to $20-25 an hour, for example) without seriously cutting into employment. But it ought to be $12-13 right now. It will result in a few less jobs. However, if you work one job for $14.50 an hour you don't to work two jobs for $7.25 an hour.

[madrchsod]

3. 1938-2009 averages around 10cts a year

[L. Coyote]

4. Minimum Wage Law = Best economic stimulus program in world history!

A minimum wage that can support an adult with a child is way overdue!

[HooptieWagon]

5. I remember when minimum wage was $1.65

To have kept up with increases in cost of living might have to be $15/hr now?

[TheKentuckian]

6. I think poverty levels need reform as well.

In fact, it probably should be minimum wage for a single person, progress from there on number of dependents, and certainly one red cent below those levels.