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> 1) the minimum wage doesn't get increased with inflation Sure it does. It's pretty much unchanged since 1980 (in a sawtooth, they build up some pressure due

> 1) the minimum wage doesn't get increased with inflation Sure it does. It's pretty much unchanged since 1980 (in a sawtooth, they build up some pressure due to inflation and then it jumps up due to legislation). 1960-1980 looks to average around 20% higher. It's funny how these charts differ. https://www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimum-wage/ft_17-01-03_minwage_1938_2016/ https://www.pewresearch.org/fact-tank/2017/01/04/5-facts-abo... https://image.cnbcfm.com/api/v1/image/103807392-min-wage-inflation.jpg?v=1529472214 https://image.cnbcfm.com/api/v1/image/103807392-min-wage-inf... A strong argument can be made that minimum wage should track GDP, not inflation.

mechagodzilla 5y ago
The important thing here is that it’s not indexed to inflation, it’s occasionally increased by legislation, so for most of the ~decade between bills, wages are decreasing in purchasing power for those people. I think you can make a much stronger case that it should track productivity than that it should track GDP, as the latter increases just by virtue of a growing population.
- ac29 5y ago
  Minimum wage is indexed to inflation some places, such as the most populous state, California. (Minimum wage is actually currently increasing by $1/year, which is substantially more than inflation, and will start being indexed to inflation in 2024 when the minimum hits $15/hr)