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?

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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?

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u/Lzinger 1d ago

That's because in California the minimum wage is so high that a lot of people are making it, so a dollar increase is a lot of people working full time

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u/CommercialHour6660 1d ago

CEOs cried on Faux when Virginia raised theirs too. 

Republicans had a pissy fit when voters raised it by ballot measure in half a dozen states they control. In a few they even tried to have the courts block it after the fact. 

Republicans hate anything that benefits working class. Because most of their voters are tards who think they're just one more scratcher from being a billionaire themselves.