In his book "The Price of Inequality," Joseph E. Stiglitz highlights the decline of the real federal minimum wage in the United States, noting that it is significantly lower now compared to 1980. As inflation has risen, the purchasing power of the minimum wage has diminished, resulting in workers earning less in real terms than they did decades ago, specifically 15 percent less in 2011.
This observation underscores the challenges faced by low-income workers and reflects a broader trend of income inequality in the society. Stiglitz argues that failing to adjust minimum wages in line with inflation not only impacts individual livelihoods but also contributes to economic problems at larger societal levels.