Equity implications of the unchanged Federal minimum wage since 2009

Abstract

This year marks 16 years since the federal minimum wage was raised in 2009. It is the longest period in its history without any increase. Even though over 20 states increased their minimum wage rates in 2025, there are still 20 states adhering to the federal minimum wage of $7.25. While the minimum wage at the federal level and in many states has remained stagnant, the prices of all life essentials have continued to increase across the country, with$1 in July 2009 having the same buying power of $1.46 in July 2024. Today, an individual needs an hourly wage of$23.08 to cover their basic living expenses, more than three times the federal minimum wage of $7.25. The increased cost of living, worsened by inflation, continues to support the calls to raise the minimum wage to improve living standards and reduce income inequality, especially for those paid at or below the minimum wage