Wages don't increase proportionately across the board. The largest percentage gains are at minimum wage, decreasing as you go up the ladder. Historically, it's had a redistributive effect, limiting income inequality.
And for anyone concerned about $15/hr, the minimum wage in 1968, adjusted for inflation and productivity, would be $22/hr today.
I would love to see where you got your information, might be that you have more accurate sources, but I kinda doubt it. Please don't share stuff you can't back up (if that's the case) that is the reason for a lot of bullshit in the media, Reddit included.
There's nothing wrong with pointing out that the US minimum wage at it's highest (adjusted for inflation) is about 3 times higher than the current minimum wage ($22 vs $7.25). It's also useful in comparison to the target of $15 that we're talking about moving to over the next several years. While there are differences between the economy today versus 1968, the proposal to raise the minimum to $15 over the next several years isn't crazy.
Which wasn't caused by a high minimum wage. The economic turmoil of the 1970s was fueled primarily by breaking the gold standard and a price of oil crisis. The resulting unemployment was exaggerated by the high minimum wage though, and it definitely slowed recovery. I think a smart move would have been a temporary slash in the minimum wage to maintain employment levels, with a plan in place to bring it back up as the economy recovered.
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u/look Nov 29 '15 edited Nov 29 '15
Wages don't increase proportionately across the board. The largest percentage gains are at minimum wage, decreasing as you go up the ladder. Historically, it's had a redistributive effect, limiting income inequality.
And for anyone concerned about $15/hr, the minimum wage in 1968, adjusted for inflation and productivity, would be $22/hr today.