The federal minimum wage goes from $6.55 an hour to $7.25 an hour next Friday on July 24. What does it mean? It means someone working an eight-hour day will earn $58 instead of $52.40. It may mean that fewer people will get jobs -- there are some who argue that a higher minimum wage discourages hiring. Others argue that the new wage is nowhere near enough. What do you think?
According to the nowhere-near-enough analysis, the new wage means that workers are still making less than they would have in 1956, adjusting for inflation. Those same analysts say that to match the spending power of the minimum wage in 1968, workers would need a minimum wage of $9.83 an hour.
Here's some math: Federal poverty guidelines are $10,830 for a family of one, $14,570 for a family of two and $22,050 for a family of four. One person working 50 40-hour weeks a year, without anything taken out for taxes or social security will earn $14,500 a year, under the new minimum wage.