Answers

Should minimum wage track living costs? I'll examine the arguments and evidence for indexing pay to inflation. Yes - if the purpose of the minimum wage is to be a living wage - it needs to keep up with the cost of living to maintain its purchasing power. Whether it should be designed that way is debated. 1. What the minimum wage was designed to do The Fair Labor Standards Act of 1938 which cre

Should minimum wage track cost of living? I'll pull the evidence on that trade-off. Does the minimum wage need to keep up with cost of living? It depends on what you want the minimum wage to do, but in economic terms - if it doesn't keep up, it loses value every year. 1. What "keeping up" means "Keeping up" usually means indexing the wage to inflation, typically to the Consumer Price Index (CP