Let’s go back to 1961 when there was a major expansion of the workers covered by the Fair Labor Standards Act (FLSA). The minimum wage was $1.15 an hour.
Let’s adjust the hourly rate for inflation since 1961 and you have $9.17. Making such a change and then adjusting the new rate for inflation thereafter should have no major negative impact on business while providing a fair adjustment for minimum wage workers without causing the negative impact of wage compression for other workers.
But of course, the answer to inequality and raising the middle class and below is not raising the minimum wage or EITC or other entitlements, but to encourage and incentivize movement upward. Why do we accept staying in a state of low – income for any period of time?
Why are we wasting so much time on this issue and getting nowhere? If we can apply a COLA to Social Security benefits and to most state and federal employee pensions, why not to the minimum wage?