The change in the federal minimum wage is in the news. It’s interesting to note that the proposed change (increase to from $5.15 to $6.55 in 2007 and then to $7.25 in 2008), when viewed on a CPI adjusted basis, still falls short of the CPI adjusted levels that the minimum wage was for every year between 1955 and 1982. The blue line below is the actual minimum wage, including the projections for the 2007 and 2008 increases. The red line is those same values, when adjusted for the Consumer Price Index using 2005 as the base year. See graph below or click here to the Data360 site to see the calculations.
Minimum Wage Increase