“Between the end of World War II and 1968, the minimum wage tracked average productivity growth fairly closely,” writes economist John Schmitt. “Since 1968, however, productivity growth has far outpaced the minimum wage. If the minimum wage had continued to move with average productivity after 1968, it would have reached $21.72 per hour in 2012—a rate well above the average production worker wage. If minimum-wage workers received only half of the productivity gains over the period, the federal minimum would be $15.34.” Instead, as we have seen, the bulk of the value created by increasing
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