Inflation Has Eaten Away At Wages Since The "Recovery"

The figures above, from the National Employment Law Project, shows what has happened to the wages of American workers since the economy "recovered". While the rich have gotten richer, and the super-rich are making out like bandits, the recovery has not been so good for most other Americans.

Wages have remained stagnant (with ownership and management eating up all of the rising productivity), and when inflation is figured in the workers have actually lost buying power. All workers have lost at least some buying power, but the biggest loss comes with the workers who have the lowest wages. They have seen 5.7% of their buying power leave since 2009.

It is obvious that the wages paid to American workers needs to rise. And that is especially true of workers making the minimum wage. We already knew that minimum wage workers are making over 30% less in buying power than a minimum wage worker was making back in the late sixties. Now we see they have lost nearly another 6%.

This should make it clear that the minimum wage must be raised, and should be raised to at least $10.10 and hour (although $15.00 an hour would be even better). This would make up for the buying power they have lost, and give them a livable wage. It would also put an upward pressure on wages for those making more -- helping them to make up for what they have lost with inflation.

The congressional Republicans will try to tell you that businesses can not afford to raise the minimum wage. That is not true. Raising the minimum wage will give those workers (and those making more) more income, and they will spend that extra income -- raising the demand for business goods/services, and creating both increased profits and new jobs. It would be good for the economy, and both workers and businesses.