The Economic Policy Institute is one of the very few think tanks in Washington, D.C. that cares about the status of working people. When one of its reports gets attention, critics are fast to point out that it is funded by unions. The same critics are silent when a think tank is funded by one or more billionaires, who like low taxes.

The value of the federal minimum wage has reached its lowest point in 66 years, according to an EPI analysis of recently released Consumer Price Index (CPI) data. Accounting for price increases in June, the current federal minimum wage of $7.25 per hour is now worth less than at any point since February 1956. At that time, the federal minimum wage was 75 cents per hour, or $7.19 in June 2022 dollars.

We are currently in the longest period without a minimum wage increase since Congress established the federal minimum wage in 1938.

As shown in the chart below, a worker paid the current $7.25 federal minimum wage earns 27.4% less in inflation-adjusted terms than what their counterpart was paid in July 2009 when the minimum wage was last increased. They earn 40.2% less than a minimum wage worker in February 1968, the historical high point of the minimum wage’s value.

After the longest period in history without an increase, the federal minimum wage today is worth 27% less than 13 years ago—and 40% less than in 1968

Real value of the minimum wage (adjusted for inflation)

Note: All values in June 2022 dollars, adjusted using the CPI-U in 2022 chained to the CPI-U-RS (1978–2021) and CPI-U-X1 (1967–1977) and CPI-U (1966 and before).

Source: Fair Labor Standards Act and amendments.

Economic Policy Institute