Just to see what it looks like, I put the Federal Minimum Wage (the one that goes back to 1938) on a graph. Then I put Median Family Income on the same graph; this one goes back to 1953.
Median Family Income was $4,242 in 1953. The minimum wage was $0.75 per hour in January of that year. The two lines were far apart on the graph.
I adjusted the Family Income number by the 1953 values to make it the same as the Minimum Wage in 1953. Now I could look at the graph and see if the two lines run together.
They don't:
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| Graph #1: The Minimum Wage (red) and Median Family Income scaled down for comparison |
They start out the same, so close you can't even see the blue line at
the time of the 1954 recession. You can see a hint of blue around the
1958 recession.
Around 1970 the minimum wage falls behind, and then farther and farther behind.
Since July 2009 the Federal Minimum Wage has been $7.25 per hour. It still is.
As of January 2019, Median Family Income, adjusted as described above, was $15.20. That's more than twice the minimum wage.
2 comments:
How about: https://fred.stlouisfed.org/graph/?g=BAC1
Or maybe (personal income instead of family income): https://fred.stlouisfed.org/graph/?g=BACJ
I guess it basically shows: increasing concentration of wealth, since the 70s or 80s.
Jerry, I had two reactions to your first graph:
1, before my nap: Wow. My first attempt was to use GDP but I didn't think of the "per capita" version. Good idea.
2, after my nap: Oh, but your start-values are not as close as they look. Your GDP number is just over twice the value of the Minimum Wage at start-of-GDP-data.
I captured the relevant values here:
early 1947 values from Jerry's graph
When I adjust your green line so it starts at the same value as the MinWage, it gains on Median Family Income (since the 1970s, say) but (surprisingly) does not leave it far behind:
Jerry's graph with the green line ''indexed'' to early 1947
I'm thinkin GDP as a measure of income includes not only the bottom 99% but also the top 1%, and not only labor share but also capital share.
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