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BNN News Archive Page
       Thursday, September 14, 2006

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Minimum Wage, Then And Now

It was on this day in 1966 that the US minimum wage was raised to a staggering $1.40 per hour. Today’s rate is $5.15. It is remarkable that in a span of 40 years the federal minimum rate has risen by less than $4.

If you compare some prices, you find some very interesting facts. I found a fascinating article from the New York Times (2003), one paragraph in particular caught my attention.

In the mid-1960's, Trudy and Adam Gaus, who were then in their 20's, were
able to purchase their $22,500 three-bedroom cedar-shaked ranch house in
Hauppauge on Mr. Gaus's $12,000-a-year engineer's salary. The newly built house had a full basement, a den with a fireplace, an eat-in-kitchen and a dining
room. Mrs. Gaus gave up her job as an art teacher and stayed at home to raise
her two sons. This year, she said, a similar house in the neighborhood sold for
$350,000.


If we use this as an example of inflation, the minimum wage should be somewhere around $20!

There is something wrong with this picture.

Simon Barrett
http://zzsimonb.blogspot.com



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posted by zzsimonb at 9:19 AM  

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