According to consumer price index increases since the last adjustment to the minimum wage, which currently stands at a pitiful $7.20/hr , the current minimum wage should have increased to about $10/hr. Where does that leave us?
People are making a lot less relative to their purchases power. Prices have gone up, but their pay hasn’t. This just swells the ranks of the impoverished and prevents people from being net positive participants in our economy.
Think of it this way, if you make less you are more likely to need government assistance to survive. Whether it is subsidized housing, food stamps, Medicaid, loss of disposable income (no iPhones = loss of corporate profits = lower consumer confidence = stock prices drop = pensions devalue = etc), and the like.
If the minimum wage was not only corrected to match the consumer price index (inflation), but tied to it in order to ensure we’re not in this situation again, it would have immense positive impacts on our economy. This is one of the easiest ways to help the American people and entice people to get a minimum wage jobs.