Beginning in 1955 thru 1975, minimum wage stayed even with the poverty level. In 1976 things began to change. Gerald R Ford was the President, and we were in the middle of the Watergate Scandal. Between 1975 to present times, Minimum Wage has not kept up with inflation, and in 1980 Minimum wage was 30% below poverty level. This trend has continued to grow. In 1985 there was a 58% gap. In 1995 American workers earning minimum wage, were bringing home 76% less then those earning poverty level wages. To bring American workers wages back to the proper level, minimum wage would have to be raised to $16,411 annually/$7.89 hourly.
Department Of Labor Figures Prove Congress Wrong
The main argument that Congress has against raising the minimum wage is that they believe that higher wages will increase unemployment. However, all one has to do is look at the current figures posted by the Department of Labor (taken from May, 2006.), and you will find that just the opposite is true.
Here are the current results from May, 2006:
1) 6 States have no Min Wage Laws, their current average unemployment is 5.36%*
2) 23 States use the Federal Min Wage Law, their current average unemployment is 5.5%*
3) 18 States have Min Wage set above the Federal min Wage, their current average Unemployment is 3.9%*
4) 2 States have Min Wage set below Federal Min Wage, their current average Unemployment rate is 4.3%*
(* Unemployment Statistics do not cover those who do not qualify for unemployment. If a person has 2 jobs, and they lose 1 job, they may not qualify for unemployment. )