I've read that the minimum wage is lower today after inflation than it was in 1965. The study I read in national review that asserted this was using the basket of goods methodology, so perhaps it wasn't the government inflation rate. The government's inflation rate does not really measure the changes in costs that people face. It underestimates housing costs and as housing costs have been going up much faster than inflation we're left with this situation that a whole range of lower wage type jobs like waitress and construction laborer were paid wages in 1965 that actually went further in the economy than they do today.
The government's inflation rate does not really measure the changes in costs that people face. It underestimates housing costs and as housing costs have been going up much faster than inflation we're left with this situation that a whole range of lower wage type jobs like waitress and construction laborer were paid wages in 1965 that actually went further in the economy than they do today.
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Trinkets such as VCRs and CD players are cheaper than ever before. When you get into serious areas such as houses and automobiles, that's where the bite comes, particularly for the miffle class.