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Grok 4.5Sep 27, 2026x-ai/grok-4.5-20260708
Does the minimum wage need to keep up with the cost of living?
Yes, in principle the minimum wage (or effective wage floor) should keep pace with the cost of living to preserve workers’ real purchasing power and fulfill its original purpose as a basic standard of living—but this is nuanced, location-dependent, and involves trade-offs with employment, prices, and alternative policies. There is no universal economic consensus that it must do so via a rigid federal formula, but evidence shows the federal floor has badly lagged, eroding its value, while many states have adjusted upward.
Citations (35)
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