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Does Minimum Wage Need to Keep Up with Cost of Living? This is genuinely contested, but here's what the evidence and arguments show: The Case That It Should Purchasing power has eroded significantly. The U.S. federal minimum wage has been stuck at $7.25 since 2009. For 2026, the federal minimum wage remains at $7.25 per hour, unchanged since July 24, 2009, making it the longest period without

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 fede