Comparing minimum wage to the cost of living in every state
Aine Givens, provided by
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Comparing minimum wage to the cost of living in every state
The federal minimum wage is $7.25 an hour, a rate that has not gone up since 2009. As the current wage stagnates, its purchasing power erodes against inflation. The average living wage today defined as an income threshold that provides basic shelter and food and keeps a person above the poverty level is $16.54, according to research from the Massachusetts Institute of Technology.
Of course, what constitutes a living wage depends on the cost of living, which in many cases is dictated by geography. The priciest areas to live in 2020 were the Northeast, Hawaii, Alaska, and the West Coast, reports the Missouri Economic Research and Information Center. The least expensive areas were Southern and Midwestern states.