Today, on the three-year anniversary of the last increase in the federal minimum wage, a broad coalition of groups and activists across the country will call for a realistic raise for the lowest-income earners.
Currently, the federal minimum wage stands at a low $7.25, and North Carolina tracks this federal standard. The minimum wage used to be a much more realistic wage standard – after its creation in 1938, the value rose steadily until reaching a high point in 1968. Since that time, however, the minimum wage’s value has steadily eroded as Congress has failed to correct for inflation over time. If properly adjusted for inflation, the minimum wage would be $10.55 today.
While the minimum wage hasn’t increased in the last three years, the prices of basic goods certainly have. As NELP’s chart below illustrates, the price of tuition, food, gas and utilities have steadily climbed while the value of the minimum wage has not. $7.25 translates to roughly $15,000 per year for a full-time worker while a conservative measure of actual family costs for one adult and one child in North Carolina requires an income of more than twice this amount.