August62011
Minimum-Wage Earners Falling Further Behind

CEO compensation grew 23 percent in 2010, while pay for the average American worker grew only half a percent.
Minimum wage workers have fared even worse: Since the 2009 increase, the real value of the minimum wage has fallen 5 percent.
The decline in value of the minimum wage during the past four decades has been even more dramatic, as prices for goods and services have risen much faster than the wage floor.
If the minimum wage had kept up with inflation since the late 1960s, it would be $10.38 today. Yet, roughly a quarter of the nation’s work force is now earning less than that. Instead of keeping the minimum wage current, Congress has acted just three times in the last three decades to increase it.

On January 1, 1981, the minimum wage went from $3.10 to $3.35. And 19 days later, we got stuck with Ronald Reagan as President and the minimum wage was stuck at this level until 1990.
It was raised a few time in the 1990’s and then from 1997 until 2007 there was another long stretch without ANY raise.

Minimum-Wage Earners Falling Further Behind

CEO compensation grew 23 percent in 2010, while pay for the average American worker grew only half a percent.

Minimum wage workers have fared even worse: Since the 2009 increase, the real value of the minimum wage has fallen 5 percent.

The decline in value of the minimum wage during the past four decades has been even more dramatic, as prices for goods and services have risen much faster than the wage floor.

If the minimum wage had kept up with inflation since the late 1960s, it would be $10.38 today. Yet, roughly a quarter of the nation’s work force is now earning less than that. Instead of keeping the minimum wage current, Congress has acted just three times in the last three decades to increase it.

On January 1, 1981, the minimum wage went from $3.10 to $3.35. And 19 days later, we got stuck with Ronald Reagan as President and the minimum wage was stuck at this level until 1990.

It was raised a few time in the 1990’s and then from 1997 until 2007 there was another long stretch without ANY raise.

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