Tuesday, October 22, 2002

ABCNEWS : : Congress Doesn't Act on Minimum Wage

The last federal minimum wage increase was in 1997, when it jumped 40 cents to $5.15 an hour from $4.75.

The Democratic measure, introduced by Sen. Edward Kennedy, D-Mass., would have raised the wage to $5.75 an hour this year, $6.25 next year and $6.65 in 2004.

Congress' inaction has fueled a groundswell of action at the state and local level. Ten states and the District of Columbia have raised their minimum wages higher than the federal government's. A nationwide movement has resulted in more than 90 "living-wage" ordinances, and more than 70 other campaigns are under way.

Supporters of an increase argue that the minimum wage is worth much less today than it was decades ago. For instance, throughout the 1960s and 1970s, the minimum wage was worth more than $5.50 an hour in today's dollars, based on inflation

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