Source: A Time Magazine Commercial -
Background information:
- In 1938 the very first federal minimum wage was set at $0.25 an hour (Fair Labor Standards Act).
- The federal minimum wage is not tied to the rate of inflation. The federal minimum wage increases through congressional action.
- Since 1938 congress and the president have worked together 22 times to raise the federal minimum wage.
- The evolution seen in the video commercial is a look at how the federal minimum wage looks as it has gone up over time.
- As you study the video pay attention to the changes in blue which will show how much the amount displayed would be worth in today’s dollars.
Federal Minimum Wage Timeline / MinimumWage / Worth In Today’s Dollars (2014) / Wage Increase
1938 / .25 / 4.15
1939 / .30 / 5.05 / .05
1945 / .40 / 5.20 / .10
1950 / .40 / 6.34 / .35
1956 / 1.00 / 8.61 / .25
1961 / 1.09 / 8.93 / .15
1963 / 1.25 / 9.56 / .10
1967 / 1.40 / 9.82 / .15
*1968 / 1.60 / 10.75 / .20
1974 / 2.00 / 9.49 / .40
1975 / 2.10 / 9.13 / .10
1976 / 2.30 / 9.46 / .20
1978 / 2.65 / 9.51 / .35
1979 / 2.90 / 9.34 / .25
1980 / 3.10 / 8.80 / .20
1981 / 3.35 / 8.62 / .25
1990 / 3.80 / 6.93 / .45
1991 / 4.25 / 7.30 / .45
1996 / 4.75 / 7.17 / .50
1997 / 5.15 / 7.51 / .40
2007 / 5.85 / 6.61 / .70
2008 / 6.55 / 7.12 / .70
2009 / 7.25 / 7.90 / .70
2014 / 7.25 / 7.25 / ------
The peak occurs in 1968. /
Purchasing power in 1968. / Purchasing powertoday.
- Do you have any observations between the increase in the federal minimum wage and the cost of living?
- What questions come to mind as you think about this video? (Label your questions by associating with a particular strand of social studies, i.e., history, economics, geography, etc.)
Video Guide Sheet/2014 Fall RESA