Here's what minimum wage would be if it kept up with inflation
The federal minimum wage hasn't budged in 15 years. The last time it was altered was in 2009, when it went from $6.55 to $7.25.
(NEXSTAR) – While some localities have bumped minimum wages as high as $17, the federal minimum wage hasn't budged in 15 years. The last time it was altered was in 2009, when it went from $6.55 to $7.25.
Since 2009, we've seen economic boom and bust, a global pandemic, and sky-high inflation, but through it all the federal minimum wage has held steady at $7.25. That's still the minimum pay per hour in 20 states. In the other 30 states and several territories, minimum wage is higher.
In many of those states, the minimum wage is actually pegged to inflation, meaning it automatically adjusts every year as prices go up. What would happen if the federal government had done the same?
According to the Bureau of Labor Statistics, $7.25 in July 2009 (when the last wage hike took effect) is equal to $10.50 in March 2024 (the last month of available inflation numbers).
A minimum wage employee earning $7.25 an hour who is working full-time earns about $15,080 (which is just $20 more than the poverty level). That annual salary from 2009 would need to grow to around $21,870 today just to keep up with the rising cost of goods and services.
Even before the 2009 pay bump, the federal minimum wage was failing to keep up with inflation. For example, it was set at $2 in 1974. Adjusted for inflation, that would be $8.86 in 2009 and $12.85 today.
Recent efforts to raise the federal minimum wage have stalled in Congress. Democrats made a push for a $15 base wage in 2021, but it was rejected in the Senate.
The highest minimum wage in the country is found in Tukwila, Washington, where large employers (with more than 500 workers) must pay at least $20.29. For states and territories, Washignton, D.C., pays best at a minimum of $17 an hour.