# Minimum Wage Hits Lowest Level in 70 Years The federal minimum wage is now officially a poverty wage. - **Source:** [Fortune](https://fortune.com) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/fbb272f2-1ec6-4886-9a7a-32c948b2d7e4 ## History 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. ## Poverty 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. ## State 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. ## Economic 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. ## Debate 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. ## Looking 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. ## Sources covering this story - https://fortune.com/2026/07/20/minimum-wage-lowest-value-in-70-years-poverty-line/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._