Re-evaluating the Federal Minimum Wage for the Modern American Worker
A rate that has remained unchanged for over a decade, failing to keep up with the cost of living.
The longest period without an increase since the minimum wage was established in 1938.
Historically, the minimum wage grew alongside worker productivity. Since 1968, that connection has been severed. While productivity has soared, the real value of the minimum wage has plummeted.
A full-time job at the federal minimum wage is not enough to live on. It falls short of the federal poverty line for a single adult and is dwarfed by the estimated national living wage needed to cover basic expenses.
While making up only one-fifth of hourly workers, those under 25 account for nearly half of all minimum wage earners.
The vast majority of minimum wage workers are in service roles, especially food preparation and serving.
A single federal wage cannot account for the vast differences in living costs across the country. A wage that is barely adequate in one state is a poverty wage in another.
Based on living wage needs and historical productivity, a significant adjustment is required to restore the value of the minimum wage.
Proposed Hourly Wage Target
Enter a hypothetical federal minimum wage, and our AI will provide a brief analysis of its potential impacts on the economy and American workers.
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Implement incremental annual increases over several years to allow businesses time to adapt to new labor costs without economic shock.
Once the target is reached, automatically link the wage to a stable metric like median wage growth to prevent future value erosion.
Support the wage increase with policies like an expanded EITC and job training programs to ensure broad economic security.