US minimum wage hits 70-year low in real value
Federal wage floor now officially below poverty line, report finds.
1Historic decline
The US federal minimum wage has remained at $7.25 for 17 years straight. With rising inflation, its purchasing power has dropped to the lowest level in 70 years. Experts note the wage is now 'officially a poverty wage' below the subsistence threshold.
2Below poverty line
A full-time minimum wage worker's annual income falls below the $15,650 poverty threshold set by Health and Human Services. Southern states maintaining the $7.25 rate show particularly high poverty levels nationwide.
3Public support for increase
A 2021 Pew survey found 62% of Americans support raising the federal minimum to $15. Opponents argue increases would cause job losses and price hikes, though most agree $7.25 is too low.
4State-level actions
30 states and DC already set wages above federal level. NYC's mayor proposed gradually raising the city's minimum to $30 by 2030. California implemented a $20 minimum for fast-food workers this year amid heated debate.
5Mixed outcomes in California
While some studies claim California's $20 wage caused 18,000 fast-food job losses, UC Berkeley research found 11% wage gains without significant employment drops. Prices rose modestly by about 1.5% on average.
6Potential national model
Economists suggest California's experiment may guide national policy as two dozen states prepare minimum wage hikes this year. These developments could mark a turning point for worker compensation across America.
Original article: Fortune | FORTUNE — ABD'de asgari ücret 70 yılın en düşük seviyesinde