The minimum wage is effected by inflation, which basically means the more money we print the less money is worth, but it evens out because we have more of it. If there were only one dollar of currency in the US it would be ridiculously valuable because it represents everything of any value in our country, every product and service. Then if you printed another dollar, it would be very valuable too, but now you have two so they’re each half as valuable as the one bill was, and so forth. Print a few trillion dollars and you get about the level of worth we have now where a dollar is worth about a dollar.
But we keep printing more money because it helps the economy in short-term growth.
The net effect of this is that money loses it’s value and it takes more money to buy anything.
So to get back to the title, how does one go about lowering the minimum wage? By not raising it to keep up with inflation.
The federal minimum wage was raised in 1997 to $5.15 an hour. It was raised again in 2007 to 7.25 an hour, but that just kicked in this july. From 1997 to 2009 $5.15 decreased in value to $3.83, effectively lowering the federal minimum wage to $3.83 an hour.
Shouldn’t minimum wage automatically bump up every year to meet inflation? Doesn’t every year that it doesn’t lower minimum wage and give more and more of our country to corporations?