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Inflation and the Real Minimum Wage: A Fact Sheet (CRS Report for Congress)

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Release Date Revised Jan. 8, 2014
Report Number R42973
Report Type Report
Authors Craig K. Elwell, Specialist in Macroeconomic Policy; Linda Levine, Specialist in Labor Economics
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Sept. 12, 2013 (4 pages, $24.95) add
  • Premium   Revised June 21, 2013 (4 pages, $24.95) add
  • Premium   Feb. 26, 2013 (4 pages, $24.95) add
Summary:

The Fair Labor Standards Act (FLSA) of 1938 established the hourly minimum wage rate at\r 25 cents for covered workers.1 Since then, it has been raised 22 separate times, in part to\r keep up with rising prices. Most recently, in July 2009, it was increased to $7.25 an hour.\r Because there have been some extended periods between these adjustments while inflation\r generally has increased, the real value (purchasing power) of the minimum wage has decreased\r substantially over time.