Minimum Wage Hits Lowest Level in 70 Years
The federal minimum wage is now officially a poverty wage.
1History of Minimum Wage
The U.S. federal minimum wage was last increased in 2009 and has remained at $7.25 since then. With rising inflation, the purchasing power of the minimum wage has hit its lowest level in 70 years.
2Poverty Wage
According to CEPR's report, the federal minimum wage is now officially a poverty wage. A full-time worker earning this wage falls below the $15,650 poverty threshold set by the Department of Health and Human Services.
3State Disparities
While 30 states and Washington, D.C., have set minimum wages above the federal rate, states in the South maintaining the $7.25 wage experience some of the highest poverty rates nationwide.
4Economic Impacts
Low wages contribute to higher poverty rates, and childhood poverty reduces the country's GDP by approximately 1.3% annually. This negatively impacts long-term economic growth.
5Debate Over Wage Increases
Opponents of minimum wage hikes argue that they increase unemployment and consumer prices. However, a study in California showed that wage increases did not affect employment levels.
6Looking Ahead
California's minimum wage increase could serve as a model for other states. About 24 states plan to raise their minimum wages this year, signaling potential nationwide change.
Original article: Fortune — Asgari Ücret 70 Yılın En Düşük Seviyesinde