Effect of rising minimum wages on average/median wages??

[Roland99]

Question for the group. Something I’ve never given much thought to until the past couple days. With actual wage gains being seen (regardless of efficacy due to rising inflation), what variables would constitute that increase?

An obvious one is as employment reaches saturation (even given the anemic LFPR), wages go up to attract or draw workers to open positions

However, wouldn’t the minimum wage increases we’ve seen at various levels (federal, state, local) have an effect on not only average wages but more importantly on median wages?

For example, it went up at the federal level in 2009. This chart (select 10yr timeframe) indicates a slight rise at the time:

https://tradingeconomics.com/united-states/wages

Certainly wasn’t from increasing wages to attract talent as this was the depths of the Great Recession.

Additionally, we need to focus more on median wages, not average. Exorbitant executive compensation has skewed the average higher and higher for the last three decades

https://www.ssa.gov/OACT/COLA/central.html

[hedda_foil]

1. That's the way I see it too.

Thanks for the excellent post, Roland99.

[Roland99]

2. Thanks for the reply. Adjusted for inflation, should be in the $11-12 range now

Still requires two jobs to live decently.

Meanwhile corporate America still sits on trillions overseas

They don’t get that as workers have more money, that money goes into the economy and builds up corporate profits from sales

The wealthy getting tax cuts just goes to tax avoidance vehicles overseas and not into the economy

[hedda_foil]

3. The economy worked for everyone when it ran that way.