Minimum wage declines 20 percent since 1967
The economic crisis precipitated a jump in unemployment rates and a contraction in consumer lending. However, as the market continues to show signs of recovery, companies' payrolls are not following such improvements.
Bloomberg Businessweek's "Chart of the Day" revealed that after adjusting for inflation, the federal minimum wage dropped 20 percent from 1967 to 2010, despite an apparent increase from $1.40 to $7.25.
The source suggests that the decline could have been even steeper if legally mandated payroll changes between 2008 and 2010 had not been put in place.
"Hardship is increasing for lower-income levels, and the minimum wage reflects those at the lower end of the payroll spectrum," said Ellen Zentner, a senior economist at Nomura Securities International, told Bloomberg Businessweek. "With those meager wages in place, it makes it hard to imagine families doing with even less."
Zentner adds that the loss of wages may also be influenced by factors such as globalization, which is causing well-paying manufacturing jobs to move overseas where they can be performed at a greater profit to the company.
Bloomberg Businessweek's "Chart of the Day" revealed that after adjusting for inflation, the federal minimum wage dropped 20 percent from 1967 to 2010, despite an apparent increase from $1.40 to $7.25.
The source suggests that the decline could have been even steeper if legally mandated payroll changes between 2008 and 2010 had not been put in place.
"Hardship is increasing for lower-income levels, and the minimum wage reflects those at the lower end of the payroll spectrum," said Ellen Zentner, a senior economist at Nomura Securities International, told Bloomberg Businessweek. "With those meager wages in place, it makes it hard to imagine families doing with even less."
Zentner adds that the loss of wages may also be influenced by factors such as globalization, which is causing well-paying manufacturing jobs to move overseas where they can be performed at a greater profit to the company.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.