Income is a big factor when it comes to the cost of living in your area. And while much has been discussed regarding the minimum wage, there is one story that’s often overlooked.
The Low Down on Minimum Wage
Per a recently published report on Howmuch.net, the value of the US minimum wage may not be what you think.
We plotted the federal minimum wage for every year since 1940 (the blue). We then adjusted for inflation to reflect how much purchasing power an hour’s work would be worth today (the green). For example, workers earned $0.40 per hour in 1945, which doesn’t seem like much, but it gave you the ability to purchase the equivalent of $5.90 worth of stuff in 2017 dollars. Anyone remember when candy bars cost a nickel?
As the article points out, the biggest problem with the minimum wage is inflation. In general, economists anticipate 1-2% inflation each year. However, when home prices double in 10 years, and wages are lagging behind rising prices; problems arise.
The debate rages on as to what the true minimum wage “should” be. However one thing is for sure, the cost of living is going up all around us. This is where the City vs City app can come in handy!
City vs City is a cost of living calculator that takes into account your wage, savings, and expenses. We examine your true cost of living at the zip code level and compare it to another zip code of your choosing.
If you’re considering moving, Download the City vs City app today!