The Federal Minimum Wage Has Been $7.25 Since 2009. That Is Not an Accident.

The Longest Freeze in History

The federal minimum wage has been $7.25 per hour since July 24, 2009. That is over 17 years without a single increase — the longest period since the federal minimum wage was first established in 1938.

At $7.25, a full-time minimum wage worker earns $15,080 per year before taxes. The federal poverty line for a family of two is over $20,000. A single person cannot afford a one-bedroom apartment anywhere in the United States at $7.25 an hour.

Inflation Has Erased What Little There Was

The real (inflation-adjusted) value of the federal minimum wage peaked in 1968 at about $13 per hour in 2026 dollars. Today's worker earning the federal minimum is making significantly less in purchasing power than a minimum wage worker in the Johnson administration.

That decline is the story of American labor policy in reverse: productivity has increased, corporate profits have increased, executive pay has increased, and minimum wage workers have gotten steadily poorer in real terms.

The Argument Against Raising It (and Why It Falls Short)

The standard argument against raising the minimum wage is that it will cost jobs — businesses will automate or reduce hours to compensate for higher labor costs. This is the theory. The evidence is more complicated.

The most comprehensive economic studies of minimum wage increases — including those that looked at Seattle, San Francisco, and multiple state-level increases — found minimal negative employment effects and significant improvements in worker income. Businesses in low-wage industries primarily adjusted through slightly higher prices, slightly lower turnover costs, and marginally compressed profit margins.

The job loss argument also conveniently ignores that increased wages for low-income workers flow directly back into local economies, since low-wage workers spend nearly all of their income rather than saving or investing it.

Who Is Actually Earning Minimum Wage

The image of the teenage part-time worker is outdated. The majority of minimum wage workers are adults over 20. Many are primary earners for their households. Over a third have at least some college education. Disproportionate shares are women and people of color.

These are not entry-level kids earning extra money. These are workers supporting families, often with multiple jobs, and still unable to make ends meet.

Why It Has Not Changed

The federal minimum wage requires an act of Congress. For the past 17 years, every attempt to raise it has been blocked in the Senate, primarily by Republicans. The filibuster has allowed a minority of senators representing low-wage, low-cost states to prevent increases that would benefit workers in every state.

Meanwhile, many of those same senators receive significant campaign contributions from industries — restaurants, retail, hospitality — that employ large numbers of minimum wage workers.

This is not complicated. It is class politics.

FAQ

What is the current federal minimum wage? $7.25 per hour, unchanged since 2009. Many states and cities have their own higher minimum wages — California, Washington, and New York all have rates above $15 per hour.

What would a $15 or $20 federal minimum wage mean for workers? A $15 minimum wage would directly raise wages for approximately 17 million workers. A $20 minimum would affect even more. Economic modeling suggests net positive effects on income and poverty reduction.

Why does the federal minimum wage require Congress to change it? The federal minimum wage is set by statute under the Fair Labor Standards Act. Changing it requires a bill passed by both chambers and signed by the president. Executive orders cannot change the federal minimum for private sector workers.