Many states have departed from the federal minimum wage. Washington's minimum wage will advance to $8.07 as of January 1, 2008. California and Massachusetts currently have minimum wages of $8.00.
![[graph]](minwage.jpg)
![[graph]](minpov.jpg)
![[graph]](minperpov.jpg)
![[graph]](MinWagCover.jpg)
| A federal minimum wage was first set in 1938. The graph shows
nominal (blue diamonds) and real (red squares) minimum wage
values. Nominal values
range from $0.25/hr
in 1938 to $5.85/hr as of July 24, 2007.
The
graph adjusts these wages to 2007 dollars (red squares) to show
the
real value of the minimum wage. Calculated in real 2007 dollars, the
1968
minimum
wage was
the highest at $9.47. The
real dollar minimum wage (red squares) falls during periods Congress
does not raise the minimum wage to keep up with inflation.
The period 1997-2007, is the longest
period during which the minimum wage has not been adjusted.
The minimum wage increases in three $0.70 increments--to
$5.85 in 2007,
$6.55 in mid 2008, and to $7.25 in mid 2009. The real
values after 2007 are projected for future decline in purchasing power.
Many states have departed from the federal minimum wage. Washington's minimum wage will advance to $8.07 as of January 1, 2008. California and Massachusetts currently have minimum wages of $8.00. | |||
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| Multiplying the minimum wage by a work year of 50, 40-hour weeks gives the annual earnings that can be expected from a minimum wage job. The red line is the poverty level annual income for a family of four. Minimum wages have never been sufficient to raise a family out of poverty, if only one member of the family works. | |||
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| The minimum wage has varied from a maximum of 90% of the poverty level in 1968 and has been between 53 and 62% since 1985. This is the lowest percentage since the poverty level was established in 1959. | |||
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As minimum wages have declined in real terms,
the percent of workers covered, too, has declined. Over 130 cities now
have "living
wages."
| Sources: U.S. Bureau of the Census; U.S.
Department of Labor, Bureau of Labor Statistics; Statistical Abstract of
the
United States; and
Survey of Current Business. | For details: Smith
1989 | |
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Updated:Tuesday, 02-Oct-2007 08:12:11 PDT
URL is http://www.orst.edu/instruction/anth484/minwage.html