Federal Minimum Wage Stagnation and videos- [View all]

Google Ai:

Economic Policy Institute (EPI) researchers calculated that the cumulative transfer of wealth from the bottom 90% of Americans to the top 1% due to increased inequality grew to over $47 trillion between 1975 and 2018, a figure that crossed the $50 trillion mark by early 2020. This amount represents income that would have gone into the paychecks of working Americans if inequality had remained constant.

Key mechanisms and figures related to the minimum wage's role in this trend include:

* Federal Minimum Wage Stagnation: The federal minimum wage of $7.25 per hour has not changed since 2009. This decline in real value relative to inflation and productivity growth is a significant factor in widening income inequality.
* Impact on Inequality: Studies have shown that the decline in the real value of the minimum wage was responsible for a significant portion of the increase in wage inequality, especially in the late 1970s and 1980s.
* Wealth Disparity: Between 1989 and 2022, a household in the top 1% of the U.S. gained 987 times more wealth than a household in the bottom 20%.
* Wage Theft: Separately, the Economic Policy Institute estimates that employers steal billions from workers each year through minimum wage violations, with one study suggesting the total amount exceeds $15 billion annually. This is a direct, illegal transfer of wages from workers to employers, many of whom are wealthy individuals or corporate entities.
* Profits vs. Wages: In theory, one mechanism by which a higher minimum wage can reduce inequality is by slightly reducing business profits, which typically go to stakeholders at the higher end of the income distribution, and redirecting that income to low-wage workers. By keeping the minimum wage low, this potential transfer is suppressed, allowing profits to remain higher.

In essence, the lack of an inflation-adjusted, living minimum wage is a major policy driver behind the massive upward redistribution of wealth and income in the United States over the last several decades.