The widening income gap

There has been much talk of the widening income gap between the poor and the middle class. One of the major reasons for this is that minimum wage remains at the same rate it was at in 2009 – $7.25 per hour. In contrast, prices have risen since that time. As a result, the floor income rate in the country is the same, but the goods these people are buying cost more.

One major reason for this is that the federal minimum wage figure does not automatically adjust with inflation, meaning it is not actually pegged to the change in costs of typical consumer goods.

Many states, including California, recognize this flaw and have taken it upon themselves to raise the minimum wage state-wide above that of the federal minimum wage. California currently has a minimum wage of $8.00.