Minimum Wage Reform

The reforms propose that minimum wage is indexed to the GDP per hour or income per hour, rather than the CPI (prices), in order so that workers receive the same share of revenue per hour over time, and their pay is not devalued by inflation. Prices do not increase at the same rate as GDP per hour due to increases in efficiency and the decrease in prices in real terms. 

1 Bebusinessed. History of Minimum Wage. Retrieved from https://bebusinessed.com/history/history-of-minimum-wage/

2 Fred. Average Hourly Earnings of All Employees, Total Private. Retrieved from https://fred.stlouisfed.org/series/CES0500000003

3 OECD. Level of GDP per capita and productivity. Retrieved from https://stats.oecd.org/index.aspx?DataSetCode=PDB_LV#

4 FRED. Mean Personal Income in the United States.  Retrieved from https://fred.stlouisfed.org/series/MAPAINUSA646N

5 FRED. Consumer Price Index for All Urban Consumers: All Items in U.S. City Average. Retrieved from https://fred.stlouisfed.org/series/CPIAUCSL