Last week during a Senate Committee on Health, Education, Labor, and Pension hearing, Sen. Elizabeth Warren made a case for increasing minimum wage: “If we started in 1960 and we said that as productivity goes up, that is as workers are producing more, then the minimum wage is going to go up the same. And if that were the case then the minimum wage today would be about $22 an hour,” she said. “So my question is … with a minimum wage of $7.25 an hour, what happened to the other $14.75? It sure didn’t go to the worker.”
Dr. Arindrajit Dube, a University of Massachusetts Amherst professor who has studied the economic impacts of minimum wage, further noted during the hearing that if minimum wage incomes had grown over that period at the same pace as it had for the top 1 percent of income earners, the minimum wage would actually be closer to $33 an hour than the current $7.25.
To watch a relevant excerpt from the hearing, CLICK HERE.