• The current federal minimum wage is $7.25 per hour , which has been frozen since 2009. Adjusted for inflation, the minimum wage in 1975 should have the modern purchasing power of about $13.08 per hour today (~$27,212 annually). This means federal minimum wage earners have lost about $5.83 per hour in purchasing power (falling short by roughly 45%) since 1975.
  

• The 1975 median household income adjusted for inflation sits at about $73,514 , while the current U.S. median household income for today sits between $74,580 and $110,500 . This shows that nominal median household income has slightly outpaced basic CPI inflation overall.

While general household income has kept up or slightly exceeded standard inflation on paper, a major catch exists: major structural costs—such as housing, higher education, medical care, and new vehicles—have risen much faster than general CPI inflation. Therefore, even if a modern paycheck looks higher on paper today, purchasing power is far less then what it was over 40 years ago.

Below was posted to Whitehouse.gov in October 2026