Minimum Wage vs. Cost of Living

Last Thursday, the Federal minimum wage went up from $5.85 to $6.55. This was the second of three annual raises required by a 2007 law.

After next year's raise, the minimum wage will reach $7.25

Unfortunately, this raise does not keep up with inflation. Last week, the Labor department reported the highest inflation rates since 1991: 5% for June (compared to June 2007). Energy costs were up 25%, while food was up more than 5%.

Today's minimum wage is lower than in the past (when adjusting for inflation):

1968 $10.06

1997 $7.02

2008 $6.55