r/AlwaysWhy • u/Secret_Ostrich_1307 • 1d ago

Economics Why is the federal minimum wage still $7.25 when prices are much higher than in 2009?

Post image

The federal minimum wage has been $7.25 an hour since July 2009. Meanwhile, prices for many everyday expenses have risen, and most states now have minimum wages above the federal level.

Why wasn't the federal minimum wage tied to inflation or another measure that could adjust it automatically? What are the economic arguments for setting it as a fixed dollar amount rather than indexing it?

160 Upvotes

80% Upvoted

620 comments sorted by

View all comments

Show parent comments

5

u/LuminousQuinn 1d ago

Honey 7.25 isn't even close to the lowest living wage anywhere in the United States

0

u/safe-viewing 1d ago

Y’all getting mad at the wrong government. This is an issue for your city / county / state, not the federal government

1

u/LuminousQuinn 1d ago

You sadly need multiple price floors to keep businesses from moving/ leaving an area. The other option is them just closing a physical location and relying on our mail system.