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Interesting calculator for determining how minimum wage has kept up with inflation. Pick your own point of reference for comparison. Try the year you graduated from high school.
An interesting sidebar = in 1980 15.1% of hourly workers made at or below min wage, in 2017 it was 2.8%.
It's actually hard to find a job at the federal minimum wage, unless you live in a very poor area of a state without their own minimum wage law and are say, a teenager. I would argue that there is no need for a Federal minimum wage as the states, localities and the market itself have done a good job of setting appropriate wage levels.
My state went to $11 an hour at the 1st of the year, but local wages for entry level work were pretty much already there because of market demand. Nobody needed the Federal government to call the tune.
Take a History Class, federal minimum wage rate's needed. Otherwise most states would have difficulty sustaining or enforcing their wage rate statutes. If there were no federal labor laws, many state's legislators would further deny employees any legal rights.
Respectfully, Supposn
With all your hyperbole about minimum wages and universal income I am beginning to think you are a minimum wage worker yourself …..
I doubt many people here earning decent wages are obsessed with minimum wage and constantly posting about it
Interesting calculator for determining how minimum wage has kept up with inflation. Pick your own point of reference for comparison. Try the year you graduated from high school.
This example uses 1965, approximately the middle of the Vietnam war era when Johnson was president. At that time the minimum wage was 1.25.
The adjusted-1965 figure was ahead until the 1980's when the Reagan administration took the housing inflation out of the CPI in 1983.
You get a much higher number for the minimum wage today if you calculate from the inflation-adjusted minimum wage in the 1980's than the government's statutory figure. It would be over $ 17 if you use the inflation-adjusted wage from 1989 at the end of Reagan's two terms.
Most states have their own minimum wage laws that exceed the federal statute. That accounts for the difference in historical representation using the federal minimum wage.
You have UBI in one form or another with the central bank supports for income. You just need to look at the pay requirements for engineers and managers at the largest companies where they state what part of the pay is the salary and the remainder is stock-based compensation.
I'm not in favor of doubling the minimum wage, just looking at both sides.
The adjusted-1965 figure was ahead until the 1980's when the Reagan administration took the housing inflation out of the CPI in 1983.
You get a much higher number for the minimum wage today if you calculate from the inflation-adjusted minimum wage in the 1980's than the government's statutory figure. It would be over $ 17 if you use the inflation-adjusted wage from 1989 at the end of Reagan's two terms.
Most states have their own minimum wage laws that exceed the federal statute. That accounts for the difference in historical representation using the federal minimum wage.
You have UBI in one form or another with the central bank supports for income. You just need to look at the pay requirements for engineers and managers at the largest companies where they state what part of the pay is the salary and the remainder is stock-based compensation.
I'm not in favor of doubling the minimum wage, just looking at both sides.
I'm going to have to think about and maybe research all this as your ability to distort or misread economic devices and organizations is exceptional.
For one how was housing inflation directly accounted for in CPI (U or W or the original CPI even)? FWIIW rents not home ownership were used in the original 1919 CPI.
I'm going to have to think about and maybe research all this as your ability to distort or misread economic devices and organizations is exceptional.
For one how was housing inflation directly accounted for in CPI (U or W or the original CPI even)? FWIIW rents not home ownership were used in the original 1919 CPI.
Ya right. Do your own work. Being fat, stupid, and lazy is no way to go through life. I've stopped reading your material so I no longer have an opinion of it. I would've posted my response with details but this has already been discussed with a previous poster who claimed to be a make-believe government economist and whose only response was that people critical of the CPI were besmirching professionals in the BLS.
As for the inflation calculator for the minimum wage, it is quite easy to change both dates and see the variance in the final results. One can easily cherrypick results which I have seen too much of here like the 1919 sample of yours. You'll have to research the definitions for those old categories because they may have changed. Mortgages were structured considerably differently in the first half of the century.
Ya right. Do your own work. Being fat, stupid, and lazy is no way to go through life. I've stopped reading your material so I no longer have an opinion of it. I would've posted my response with details but this has already been discussed with a previous poster who claimed to be a make-believe government economist and whose only response was that people critical of the CPI were besmirching professionals in the BLS.
As for the inflation calculator for the minimum wage, it is quite easy to change both dates and see the variance in the final results. One can easily cherrypick results which I have seen too much of here like the 1919 sample of yours. You'll have to research the definitions for those old categories because they may have changed. Mortgages were structured considerably differently in the first half of the century.
1. I didn't supply any sample per 1919......that was just to let you know that CPI even then per housing costs considered rent changes not housing price changes.
2. Quite obviously you do read what I write at least some of the time. Like here.
3. It's cool to be critical of The BLS, The Fed. etc. but you make things up - or at the very best misread history. That's not being critical that's storytelling.
A. Recall your utterly false claim that Fed. district bank boards were packed with hedge-fund king-pins. I literally proved that was incorrect and yet you continued to argue. We can look all that up and link it if you'd like. Community organizers, union bosses, ex-community bankers and school teachers are not hedge fund bosses.
B. Here you are trying to blame Reagan for equivalent rent changes the BLS had been working on since the later 1970s and that were announced in '81. Further, the changes were announced in '81 but were not fully implemented for years. And no I'm not lying or guessing. CPI changes are never made on the fly. Changes are contemplated, studied, contemplated again, reviewed by academics etc. over a period of years and if they meet statistical and economic muster the changes are announced and implemented usually at least a year later.
C. I'd really like to see your source for direct home price inclusion in CPI before 1983. I'm certainly no expert on CPI nor CPI accounting for SFH costs. That said I don't recall ever hearing or reading that CPI published numbers included direct SFH prices/price increase which seems to be the crux of your claim.
ETA -
D. I'm not sure how Reagan and Co. are to blame for this set of facts. IOW not only are some of your claims bogus your time horizon for blaming Reagan is off. There is no big move in '83, '84, '85 etc.
All in 2018 Dollars....
1. The all time inflation adjusted high MW value was in 1970 when the $1.60 MW was worth $10.35 of 2018 dollars.
2. MW value in nearly straight line fashion decreased from there to 1995 when the $4.85 MW was worth $7.00 2018 dollars.
3. FWIW the modern era low value for the MW was in 2005 when the $5.15 MW was worth $6.62 2018 dollars.
4. COB 2020 the $7.25 MW was worth right at $7.15 2018 dollars.
Take a History Class, federal minimum wage rate's needed. Otherwise most states would have difficulty sustaining or enforcing their wage rate statutes. If there were no federal labor laws, many state's legislators would further deny employees any legal rights.
Respectfully, Supposn
Nonsense. Now I also think the reasonable federal minimum wage as it is now poses little harm to business.
Nor would adding a quarter a year to it for a few years do much harm.
This is probably only the 2nd or 3rd time. The only other time was your taking objection to information about the conflict of interests represented on the the NYFed BOD seats. You were only right because the Fed responded to criticism of cronyism and changed the board's consumer seats in the last two years. It was previously not the case. If you're right 2 years out of 100, it's not a good record on your part.
There is nothing cool about the BLS or the Fed. Don't waste my time then. My interest in the CPI came about during the debate over the Balanced Budget and the role of the Boskin Commission. As for the Fed, there is ample evidence during the buildup to the financial crisis that the accounting and regulatory oversight were lax. There were so many things they did and did not do that favored banks that I don't have the time to go through it. I would suggest a homework of looking up the term "regulatory capture" associated with "federal reserve".
I'm also not blaming Reagan. OER replaced housing in shelter in 1983. The law requiring the indexing of many things to the CPI was passed under Reagan in 1981. Reducing the CPI goes hand in hand with lowering the growth in entitlements without bringing them up for vote. Given that Congress had a haphazard method to adjusting the Social Security benefits in the 70's, tying them to the CPI was not a bad idea. It seems your interest is mainly political and easily take umbrage at facts that are inconvenient to your political leanings. Do it really matter that the change was implemented in 1983 and was there any opposition from either party? It was pointed out to show that the CPI is not the same. (In the same vein, P/Es and EPS' are not comparable over the last 40 years.)
You proved my point. You can change the dates on the calculator and get whatever you want. You also have to be aware that the quality of the data changes because the CPI is no longer the same.
Since the crux of the economics forum is mostly political, I don't post or read here often.
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