The minimum wage in the United States has changed a lot over the years, reflecting shifts in the economy and cost of living. From modest beginnings to periodic increases, each adjustment tells how wages have struggled to keep pace with inflation and economic pressures.
According to the Economic Policy Institute, here are the minimum wages throughout the years.1
1945-1949
The federal minimum wage was set at $0.40 per hour during this period. This was an increase from earlier years, as part of the efforts to support a post-World War II economic stability.
Adjusted for inflation, this wage equaled around $5.84 per hour in 2023 dollars.
1950-1955
In 1950, the minimum wage saw a substantial increase to $0.75 per hour. This was a notable rise, reflecting the economic boom of the early 1950s.
By 1955, the purchasing power of this wage was approximately $8.47 in today’s dollars
1956-1960
In 1956, the wage was raised again to $1.00 per hour. This continued to support the rising living standards of the 1950s. Adjusted for inflation, this wage had a value of about $9.88 per hour.
1961-1962
Another increase came in 1961, bringing the federal minimum wage to $1.15 per hour. The inflation-adjusted value was around $10.19 per hour.
1963
In 1963, the federal minimum wage rose again to $1.25 per hour, with an inflation-adjusted value of approximately $10.81 per hour.
1967
In 1967, the federal minimum wage was set at $1.40 per hour. This period marked a significant increase from the earlier rates, reflecting the growing recognition of the need for a livable wage amidst rising costs of living.
1968-1973
During the years 1968 to 1973, the minimum wage remained at $1.60 per hour. This period did not see an increase in the minimum wage, despite inflation and the changing economic landscape.
The wage stagnation during these years meant that many workers struggled to keep up with the rising cost of living.
1974
In 1974, the federal minimum wage increased to $2.00 per hour. This adjustment aimed to address some of the economic pressures faced by low-wage workers and was part of a broader effort to provide fairer compensation as inflation continued to impact the purchasing power of wages.
1975
The minimum wage experienced a slight increase to $2.10 per hour in 1975. This modest adjustment was made to further align with the inflationary pressures of the time, though it remained relatively low compared to the actual cost of living.
1976-1977
Between 1976 and 1977, the minimum wage was set at $2.30 per hour. This period saw another increase as part of an effort to help workers cope with the ongoing inflation and economic changes.
The incremental adjustments aimed to improve the wage standards, although many workers still found it challenging to meet their financial needs with the prevailing minimum wage.
1978
In 1978, the federal minimum wage was set at $2.65 per hour. This increase was part of a series of adjustments aimed at keeping pace with inflation and addressing the cost of living for low-wage workers.
1979
The minimum wage saw another increase to $2.90 per hour in 1979. This adjustment was intended to help workers manage the rising cost of living and maintain their purchasing power in an era of increasing inflation.
1980
In 1980, the federal minimum wage was set at $3.10 per hour. This increase continued the trend of incremental adjustments to improve the earnings of minimum-wage workers in response to inflation and economic conditions.
1981-1989
During the years from 1981 to 1989, the minimum wage remained at $3.35 per hour. This period of stagnation reflected a lack of adjustments to keep up with inflation, which eroded the real value of the minimum wage and reduced its effectiveness in providing a livable income.
1990
In 1990, the federal minimum wage increased to $3.80 per hour. This adjustment aimed to address some of the disparities that had developed during the previous decade of stagnation, helping to improve the earnings of low-wage workers in the face of rising living costs.
1991-1995
During the years 1991 to 1995, the federal minimum wage was set at $4.25 per hour. This period saw a gradual increase aimed at addressing inflation and improving the purchasing power of low-wage workers. The adjustment represented a step toward better aligning wages with the cost of living.
1996
In 1996, the federal minimum wage increased to $4.75 per hour. This adjustment was part of a broader effort to improve wage standards and ensure that workers could better cope with inflation and rising living expenses.
1997-2006
Between 1997 and 2006, the minimum wage remained at $5.15 per hour. This decade-long stagnation saw no increases, which meant that the real value of the minimum wage continued to erode as inflation and living costs rose.
The lack of adjustments during this period contributed to a growing disparity between the minimum wage and the actual cost of living.
2007
In 2007, the federal minimum wage was increased to $5.85 per hour. This adjustment marked the beginning of a series of incremental increases aimed at addressing the previous stagnation and improving the earnings of low-wage workers.
2008
The minimum wage saw another increase to $6.55 per hour in 2008. This adjustment continued the effort to improve the wage floor and provide better support for workers facing rising living costs.
2009-Present
From 2009 onward, the federal minimum wage was set at $7.25 per hour. Despite this increase, the minimum wage has remained unchanged for an extended period.
Many argue that the current rate is insufficient to meet the cost of living and advocate for further adjustments to ensure a more equitable wage for low-income workers.(ref)
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Martha A. Lavallie
Martha is a journalist with close to a decade of experience in uncovering and reporting on the most compelling stories of our time. Passionate about staying ahead of the curve, she specializes in shedding light on trending topics and captivating global narratives. Her insightful articles have garnered acclaim, making her a trusted voice in today's dynamic media landscape.
