minimum wage

[srblanco7]

I don't think you do.
But how many people out there are working full time for the federal minimum wage of $7.25?

From a BLS report for 2023 -

"Among those paid by the hour, 81,000 workers earned exactly the prevailing federal minimum wage of $7.25 per hour. About 789,000 workers had wages below the federal minimum."

Also, noting that the Federal minimum wage of $7.25 has been in place since 2009, it'd be around $10.50/hr if it were indexed for inflation. I'm of the general opinion that Federal/State laws should be indexed for inflation. Otherwise you end up with unintended consequences such as drawing millions of middle class earners into the AMT (we lived with this for several years prior to the TCJA).

[myrdale]

I just think why can't it be tied to inflation the minimum wge.

Say a law is passed that states Federal Minimum Wage must increase (and I assume decrease) based on inflation.

It is Standardizing it such that 1 hour of work would result in the equivalent of $20 dollars in 2024 dollars.

Now we've got four guys, two are 18 and the other two are 40. One pair (18 & 40) work at a McDonald's in Southern Mississippi. The other pair work at a McDonald's in by Time Square in New York, New York.

Are we finally all happy that they are all four being paid $20 an hour today? In five years are we still happy they are being paid, say $24 an hour? And what if there is deflation? Are we OK with them making $18 in five years if the economy goes that direction?

[ua_guy]

Raising the Federal Min Wage would be to nail the states that don't specify a state minimum. The guy working for McD in New York would be earning, say, $30/hr, per his state's minimum, and the guy in MS would be earning the new federal min of $20.

Existing wages for employed workers aren't tied to inflation or deflation, so why would it be for people earning minimum wage? It's a minimum, that's how it's designed to exist. Minimum wage should be evaluated relative to inflation, though, otherwise we get into the situation we're in now.

[Like2Plan]

What's the minimum wage where you are? Where I am it's $20.29 (WA)

Is that statewide?