Adjusted for Inflation, the Federal Minimum Wage at Lowest in Decades
In December 2021, The Brookings Institution released portions of a study that revealed what the wage increases given to frontline workers at 13 “household name” companies actually mean in the bigger economic picture. At Amazon, for instance, the average hourly wage went up 17 percent, from a pre-Covid-19 pandemic $15.75 in January 2020 to $18.50 by October 2021. Employees at Target saw their average wages go up by 11 percent for the same period, from $14.48 to just over $16. But as the Brookings study termed it, these wage increases were “nominal”—that is, they don’t account for inflation, which, in recent months, coming out of the pandemic recession, is at a 40-year high. In fact, the Brookings study found that, given 2021 inflation figures, some of the wage increases amounted to barely a dollar an hour or less. In other words, it is great that such raises are being given, but they are not all that they’re cracked up to be. And they depend upon the employer’s good graces. Things are worse if you don’t work for one of the companies giving voluntary wage hikes. Due to political stalemates, the federal minimum wage remains frozen at a mere $7.25. Adjusted […]