Draw your own conclusions to all this.
In 1938 the first federal minimum wage was $0.25 per hour or $4.20 in 2014 dollars.
Earnings of the typical American family in 1938 were about $2,116 or $1.02 an hour (given the family in 1938 generally consisted of one breadwinner, these numbers reflect individual wages.) In 2014 dollars the annual income would be $35,527.19/2080=$17.08 an hour.
According to Social Security data, the actual average net compensation in 2013 was $43,041 or $20,069 an hour. [This is not household income which is widely reported at around $52,000 income].
So, average wages grew faster than the CPI, no big revelation, but it adds to the case for a higher minimum wage.
On the other hand, in 1938 the minimum wage was 25% of average wages. In 2013 the minimum hourly wage was 36% of the average hourly wage.
$7.25 an hour equals $15,080 a year. $10.10 equals $21,008 a year. The much misused average Social Security benefit is $14,400. The Social Security benefit for a 66 year old retiring today who earns $43,000 a year is $14,820 (50% more if married).
Well, what the hell does all this mean? Nothing except that you can build an argument to support anything you want. Forget all that‼️
Raising the minimum wage will have very minimal impact on the middle class, it will cause an increase in some prices, especially in fast foods and retailing, it will cause wage compression and upward pressure on wages just above the current minimum … so what?
That’s a small price to pay and Republicans should figure that out. To avoid this nonsense in the future, peg future increases in the minimum wage to the Social Security COLA percentage. What’s good for one generation should be good for another.
Move on‼️We have bigger problems to solve‼️
P.S. The real goal remains to motivate people and help them acquire the tools and skills to get the hell out of their minimum wage job; easier said than done and that’s the real challenge.
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