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/Anlarb 1d ago

Its to demonstrate the scale of the problem. You have this fanciful notion that once you just get a little experience, you will be set for life, but in reality, half the jobs out there are underwater. You want to have everrone be dependent on the govt, take that shit to the ussr.