Erosion by Inflation: Due to inflation, $7.25 buys far less today than it did in 2009, let alone in the 1960s when the rate had significant purchasing power. In real terms, the federal minimum wage is worth less than it was in the late 1960s.A "Sub-Poverty" Wage: At $7.25 per hour, a full-time worker earns just over $15,000 per year—an income well below the federal poverty line for a family of two or more. This is the main driver of the need for food stamps and Medicaid, even among employed people. Beloud