Inflation Erodes Real Value of Minimum Wage

Although the minimum wage in 1968 was $1.25, prices were a lot lower then. In terms of today’s purchasing power using today’s 2010 dollars, the real value of the minimum wage in 1968 was $9.86.  Since the minimum wage (Federal) was increased in 2009 to $7.25, that means that the minimum wage is still 25% lower than in 1968.  Graph of the changes over time and source data at ReMapping Debate. and at