To the Editor:
I heard one older lady say, “We fed our kids. Why can’t people feed their kids today?”
I thought about that and did some research. Wages are up, but prices are up, too. I decided to compare 1975 purchasing power to today’s purchasing power.
Purchasing power is measured by the Consumer Price Index, which is the price of a basket of similar goods that has been tracked over time. What $1 bought in 1975, now sells for roughly $6.02. If a family made $10,000 in 1975, that same family needs over $60,000 to buy the same goods.
Minimum wage in 1975 was $2.10/hour. In order to buy the same goods today, one would need $12.60/hour, but today’s minimum wage is $7.25. This means that someone living on minimum wage today can only buy 58% of what someone living on minimum wage in 1975 could buy.