(NEXSTAR) – The federal minimum wage has remained unchanged for 15 years, although the minimum wage has been raised to $17 in some areas. The last time it changed was in 2009, when it went from $6.55 to $7.25.
Since 2009, we’ve experienced economic booms and busts, a global pandemic, and sky-high inflation, but the federal minimum wage has remained stable at $7.25. This remains the lowest hourly wage in 20 states. In 30 other states and some territories, the minimum wage is even higher.
In many of these states, the minimum wage is actually indexed to inflation, meaning it automatically adjusts each year as prices rise. What would have happened if the federal government had done the same?
According to the Bureau of Labor Statistics, $7.25 in July 2009 (when the last wage increase went into effect) is equivalent to $10.50 in March 2024. Inflation figures available for the last month).
A minimum wage employee working full time and making $7.25 an hour earns approximately $15,080, which is Only $20 above the poverty level). Just to keep up with the increased cost of goods and services, your annual salary in 2009 would need to increase to about $21,870, which is currently around $21,870.
Even before the 2009 wage increase, the federal minimum wage had not kept pace with inflation.For example, it is Set at $2 in 1974. Adjusted for inflation, he would earn $8.86 in 2009 and $12.85 today.
Recent efforts in Congress to raise the federal minimum wage have stalled. Democrats called for a base wage of $15 in 2021, but it failed in the Senate.
The nation’s highest minimum wage is in Tukwila, Washington, where large employers (500 or more workers) must pay at least $20.29. For states and territories, Washington, DC has the lowest and highest hourly wage of $17.
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