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This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

If the minimum wage had kept pace with productivity growth since 1960 would it now be about triple the current level?

By William Boger
YES

If the 1960 federal minimum wage of $1 an hour had kept pace with U.S. growth in productivity since then, it would be more three times the current level of $7.25.

Today's minimum wage has lagged inflation somewhat--one 1960 dollar would be $8.75 after adjusting for inflation. But it's much farther behind in terms of growth in the U.S. economy's productivity, a measure of how efficiently resources are used to create a given level of output. Economists say the minimum wage kept pace with overall productivity gains until about 1968, but has lagged behind since. Dean Baker, a Washington economist, in January estimated that a fully-adjusted figure would now be $24 an hour.

This fact brief is responsive to conversations such as this one.
ABOUT THE CONTRIBUTOR
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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