Each year, poverty thresholds are calculated based on the cost of living, so thresholds rise over time with inflation. However, the federal minimum wage hasn’t changed since 2009 in the United States, which means the minimum wage is now a poverty wage:
When the minimum wage was created as part of the Fair Labor Standards Act in 1938, the policy was intended to protect the nation from “the evils and dangers resulting from wages too low to buy the bare necessities of life.”1 The federal wage floor is clearly not fulfilling this objective anymore because of a historically long period of inaction by Congress. The last time Congress increased the federal minimum wage was in July 2009, meaning that as prices have risen over the last 15 years, the value of the minimum wage has fallen by 30%.
