Minimum Wage Lowest in 55 Years

The Center on Budget & Policy Priorities (CBPP) produced a table calculating the purchasing power of the minimum wage between 1947 and 2006 that shows that the current minimum wage of $5.15 per hour is the lowest since 1955, when it was $4.74 per hour in 2006 dollars ($0.75 per hour in 1955 dollars). The closest the minimum wage has been to the current low was in 1989 when it was at $5.22 per hour in 2006 dollars ($3.35 per hour in 1989 dollars). In both these cases, however, within the following year the minimum wage was raised by $1.24 and $1.26 per hour, respectively. However, unless Democrats regain control of Congress there appears little chance that the minimum wage will be increased in the next year. The table also tracks the relationship between the minimum wage and the average non-supervisory wage over the same time period. The last time it was as low as today (the minimum wage is 31 percent of the average wage) was 1949 when the minimum wage was $2.85 per hour ($0.40 in 1949 dollars). It was subsequently raised to $5.28 per hour ($0.75 in 1950 dollars) the following year.

With such a stark differerce between average and minimum wage levels, an increase in inequality will likely result. Because the minimum wage is not at a level at which it is possible to make a successful living, those who earn minimum wage are often forced to take multiple jobs to make ends meet. This reduces the time they can devote to increasing their education and skills and also reduces the time they can spend raising their children or even keeping track of what they are doing. In an era in which Republicans are supposedly supportive of family values, they don't seem to do much except rant against the supposed evils of abortion, divorce and gay marriage, while ignoring and stifling discussion on providing families with enough income from one job that could allow them to spend more time helping themselves move into better careers and also spend more time with their family. That would be supportive of family values and would also probably have a more significant reduction of abortion and divorce than the diatribes the Republicans launch, which may get votes but do not do anything to help solve the problems.