It’s outrageous that the amount paid to our nations most vulnerable and essential workers has not kept up with inflation.
Politicians haven’t prioritized these workers for two reasons:
- They are less likely to vote
- They aren’t able to make campaign contributions
I intend to advocate for these workers and show them a hint of what they could achieve if they show up to vote in election after election.
Below is a table that shows what the Federal Minimum Wage was at certain points, and what that hourly wage would be worth today if minimum wage had kept up with inflation.
| Year | Federal Minimum Wage | Equivalent To Today |
|---|---|---|
| 1978 | 2.65 | 12.77 |
| 1979 | 2.90 | 12.56 |
| 1980 | 3.10 | 11.83 |
| 1981 | 3.35 | 11.59 |
| 1990 | 3.80 | 9.50 |
| 1991 | 4.25 | 9.81 |
| 1996 | 4.75 | 9.52 |
| 1997 | 5.15 | 10.09 |
| 2007 | 5.85 | 8.87 |
| 2008 | 6.55 | 9.57 |
| 2009 | 7.25 | 10.63 |
Solution
Enact Federal Minimum Wage legislation that sets the minimum wage at $15 per hour AND indexes that wage to inflation.
If Walmart and McDonalds can increase their minimum pay levels and advocate for higher pay, then any company should be able to. Companies that depend on an ever decreasing cost of labor to remain profitable will need to adjust to the reality of paying their employees non-sustenance wages.
Don’t take my word for it, here is what a couple of our countries largest employers have to say on the topic of wages. The quotes below are lifted directly from their websites and are not meant to imply an endorsement by either company:
“It’s clear by our actions and those of other companies that the federal minimum wage is lagging behind – $7.25 is too low. It’s time for Congress to put a thoughtful plan in place – one that takes into account phasing and cost of living differences to avoid unintended consequences.”
corporate.walmart.com
“Our first value is taking care of our people, and today we are rewarding our hardworking employees in McDonald-owned restaurants for serving our communities… these actions further our commitment to offering one of the leading pay and benefits packages in the industry.”
corporate.mcdonalds.com
Sources
https://www.dol.gov/agencies/whd/minimum-wage/history/chart
https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator
https://corporate.walmart.com/askwalmart/how-much-do-walmart-associates-make
https://corporate.mcdonalds.com/corpmcd/our-stories/article/mcopco-wage-raise.html
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