Suppose the Minimum Wage Was $0

question 64

Essay

Suppose the minimum wage was $0.25 per hour in 1938 and the CPI in that year was 11.5. If the CPI in 1990 was 130.7, what is the real value of the 1938 minimum wage in terms of 1990 dollars? The real value of the 1990 minimum wage in terms of 1990 dollars is $4.25. Has the real value of the minimum wage declined since 1938?

---

Definitions:

Retirement Age

The age at which a person is typically expected to cease working and is eligible to receive retirement benefits or pensions.

Profession

A type of occupation that requires specialized training, education, or skill, often associated with a particular field or industry.

Career

The pursuit of successive, often related jobs over time in a particular field or industry, often marked by advancements or changes in roles.

Candy Pieces

Small items of confectionery or sweet food products.