NEWS OF: 7/12/2006

Minimum Wage: From Starvation to Dirt Poor

In 1997 the minimum wage hit $5.15 per hour. Even back then, adjusting for inflation, it was worth $5.03 per hour. Ten years later it’s still $5.15, only now, adjusting for inflation, it’s worth $4.04.

In 1997, congressional pay rates were $133,600 per year. Ten years later it’s $165,200. An increase of $31,600, a 23.65% increase.

At $5.15/hr, you will earn $31,600 in 6,136 hours (153 weeks, or just under 3 full years.)

These are the guys who don’t want to raise the federal minimum wage because it will cost taxpayers money. Democrats like Tom Allen want to raise the minimum wage to $7.25, taking them out of the destitute column and placing them firmly in the terribly poor column.

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1 Comment »

  1. If your objective is to help the working poor, an expansion of the Earned Income Tax Credit would be a much more effective and equitable way of doing so than raising the minimum wage.

    Comment by David F. Prenatt, Jr. — 7/13/2006 @ 12:01 pm

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