The federal minimum wage, adjusted for inflation, is at its lowest level in more than a decade and at nearly the same level as in 1954. The height of the minimum wage’s buying power came in 1968, when it was $1.58 an hour, or nearly $12 an hour in today’s dollars. That is $3 less than what Democrats have proposed. Lawmakers removed a $15 an hour wage proposal from the $1.9 trillion stimulus plan in Congress and plan to pursue it later in a separate bill. For the 1.1 million U.S. workers at or below the minimum wage, an increase could bring purchasing power closer to 1968 levels.
The biggest expense for most Americans—housing—is unaffordable for people making the federal minimum wage in some areas, especially those where state governments have already increased the minimum wage above $7.25. This wasn’t the case 50 years ago. With a median rent of $117 a month ($809 in 2021 dollars), minimum-wage earners working 40 hours a week in the Atlanta metro area would have more than half of their pretax wages left over to spend on other things. The equivalent worker today would need a roommate or housing assistance at the state or federal level to have any more income for food and other necessities.
How many hours a week it would take a federal minimum wage earner to afford the median rent in select metro areas
Under $15 per hour proposal
40 hours a week
San Jose (most)*
Los Angeles
Kansas City
Pittsburgh
Toledo (least)*
Under $15 per hour proposal
40 hours a week
San Jose (most)*
Los Angeles
Kansas City
Pittsburgh
Toledo (least)*
Under $15 per hour proposal
40 hours a week
San Jose (most)*
Los Angeles
Kansas City
Pittsburgh
Toledo (least)*
Under $15 per hour proposal
40 hours a week
San Jose (most)*
Los Angeles
Kansas City
Toledo (least)*
Minimum-wage workers in 1968 paid less for nearly every type of living expense, from food and healthcare to entertainment and larger ticket purchases. Going to the ballpark cost on average $2.44, one-third the price of a ticket today when adjusted for inflation.
Big Mac from McDonald’s
$3.76 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
A Gallon of Gasoline
$2.56 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Out-of-pocket Healthcare Expenses
Annual, excluding contributions to premiums
$796 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Baseball Game Ticket
$18.34 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
4 hrs. 41 min.
2 hrs. 16 min.
1 hr. 30 min.
Monthly Mortgage Payment
Based on 30-year mortgage, excluding taxes and interest
$516 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
A Dozen Eggs
$3.99 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Movie Ticket
$9.85 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
1 hr. 12 min.
Monthly Car Payment
Based on 60 payments, excluding taxes and interest
$427 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Big Mac from McDonald’s
$3.76 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
A Gallon of Gasoline
$2.56 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Out-of-pocket Healthcare Expenses
Annual, excluding contributions to premiums
$796 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Baseball Game Ticket
$18.34 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
4 hrs. 41 min.
2 hrs. 16 min.
1 hr. 30 min.
Monthly Mortgage Payment
Based on 30-year mortgage, excluding taxes and interest
$516 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
A Dozen Eggs
$3.99 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Movie Ticket
$9.85 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
1 hr. 12 min.
Monthly Car Payment
Based on 60 payments, excluding taxes and interest
$427 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Big Mac from McDonald’s
$3.76 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
A Gallon of Gasoline
$2.56 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Out-of-pocket Healthcare Expenses
Annual, excluding contributions to premiums
$796 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Baseball Game Ticket
$18.34 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
4 hrs. 41 min.
2 hrs. 16 min.
1 hr. 30 min.
Monthly Mortgage Payment
Based on 30-year mortgage, excluding taxes and interest
$516 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
A Dozen Eggs
$3.99 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Movie Ticket
$9.85 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
1 hr. 12 min.
Monthly Car Payment
Based on 60 payments, excluding taxes and interest
$427 in
2021 dollars
Minimum-wage work time needed
PROPOSED $15/HR.
Big Mac from McDonald’s
$3.76 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
A Gallon of Gasoline
$2.56 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
Out-of-pocket Healthcare Expenses
Annual, excluding contributions to premiums
$796 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
Baseball Game Ticket
$18.34 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
4 hrs.
41 min.
2 hrs.
16 min.
1 hr.
30 min.
Monthly Mortgage Payment
30-year mortgage, excluding taxes and interest
$516 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
A Dozen Eggs
$3.99 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
Movie Ticket
$9.85 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
1 hr. 12 min.
Monthly Car Payment
Based on 60 payments, excluding taxes and interest
$427 in
2021 dollars
Minimum-wage work time needed
PROPOSED
$15/HR.
Minimum wages above the federal floor have been enacted in 29 states (plus D.C.) ranging from $8.65 in Florida to $15 in the District of Columbia, according to the National Conference of State Legislatures.
States with minimum wages higher than than the federal level
$8.00/hour
$8.00/hour
$8.00/hour
$8.00/hour
Sources: Labor Department (wages, inflation, eggs); Commerce Department (gas, cars); U.S. Census Bureau (rent, mortgage); AAA (gas); Economic History Association; Statista (baseball); National Association of Theatre Owners (movies); Kaiser Family Foundation (healthcare); The Associated Press (Big Mac): National Conference of State Legislatures (state wages)
Write to Brian McGill at [email protected] and Max Rust at [email protected]
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