Workers do not demand appropriate wages commensurate with their value at all times. I recall making $7.25/hr and having colleagues "doing well" by making $7.50

Workers do not demand appropriate wages commensurate with their value at all times. I recall making $7.25/hr and having colleagues "doing well" by making $7.50/hr. At the time it was not uncommon for "good" employers in the service sector to promise something along the lines of a $.25/hr raise every 6 months to a year. Now the problem with this is that the effect is to lower expectations for wages by taking advantage of financial literacy. Someone working for them for 4 years receiving a raise every 6 months earns $2/hr more. The employer/seasoned employees point to this and say that a starting wage $2/hr higher is unreasonable. Unfortunately the fixed rate wage increases diminish over time, and if you think that moving into management/higher level positions would entitle you to more money... then I have a bridge in Brooklyn to sell you. When employers mirror this strategy or take other similar approaches, then you end up with wages that are depressed relative to the value of the labor being provided ( or the opportunity value if that labor was applied to other activities, or used more efficiently ).