The Minimum Wage Compared to Inflation

Watch out… Lance Burri is doing math.

Well, if indexing for inflation means lifting families out of poverty, then I’ve got good news.

A little history now, and then a little math.

Wisconsin’s first minimum wage, 22 cents an hour, went into effect in 1919. Twenty-two cents, adjusted for inflation, comes to $2.67 an hour in 2007 dollars, less than half of today’s actual minimum wage.

In 1956, the minimum wage went up to 70 cents. Adjusted to 2007 money, that equals $5.41 an hour. Today’s wage is still ahead of inflation!

In 1989, the minimum wage went up to $3.65. In 2007 dollars, that equals $6.19.

In all three cases, actual growth in the minimum wage outstripped inflation. It was last raised – to $6.50 – in 2006. If it rises to Sen. Decker’s $7.25, that will be an 11.5% increase over two years’ time.

1. never let facts get in the way of politicians pandering to the economic illiterate.

   Posted by on January 12, 2008 at 1435 hrs




2. Sen. Decker does not care about the increase in the rate of inflation, what he is trying to accomplish is to raise the minimum wage so that WEAC and all of the other public employee unions in Wisconsin will then be able to get another raise for themselves.

   Posted by on January 12, 2008 at 2102 hrs