If the minimum wage had kept pace with productivity growth since 1960 would it now be about triple the current level?
Saturday, August 22, 2020
By William Boger
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YES
If the 1960 federal minimum wage of $1 an hour had kept pace with U.S. growth in productivity since then, it would be more three times the current level of $7.25.
Today's minimum wage has lagged inflation somewhat--one 1960 dollar would be $8.75 after adjusting for inflation. But it's much farther behind in terms of growth in the U.S. economy's productivity, a measure of how efficiently resources are used to create a given level of output. Economists say the minimum wage kept pace with overall productivity gains until about 1968, but has lagged behind since. Dean Baker, a Washington economist, in January estimated that a fully-adjusted figure would now be $24 an hour.
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