One of the problems facing the American worker, among all else, is the declining purchasing power of his or her money. Fifty dollars is less than what it was a decade ago. This is one of the reasons the political left is fighting for an increase in the minimum wage. The rate of inflation is outpacing the wage increase among workers.

To illustrate, American workers earning minimum wage today are earning 17% less than what they earned 10 years ago with the same $7.25 per hour wage. The same minimum wage earner who would be making 31% less than he or she was making fifty years ago.

An increase in the minimum wage would offset the increasing cost of living. The American dollar has lost at least 90% of its value in the last ninety years. This means that if you had a hundred dollars today, it would be almost worthless in comparison with a hundred dollars ninety years ago.

As government spending increases along with demand for goods and services increases, it is an economic law that the cost of the goods and services would rise to meet the demand. This means more money would be required to purchase items. While the billionaires have had astronomical leaps in earnings, the average American worker has seen earnings stagnate. This stagnation means they're getting poorer as everything around them increases in cost.

The income gap between the wealthy and the average American worker has only worsened. The average CEO earns $14M per year. The average American minimum wage earner earns $15,000 per year. That's an inequality ratio of 924 to 1. Half a decade ago, the inequality ratio was 361 to 1. Thirty years ago, it was from 59 to 1. 

This simple metric illuminates an important point. The value of money is falling (inflation) and while the Zuckerbergs, Gates, and Bezos are making more to offset this fall in value, the Joes and Marys of the factory workers are having their wages stuck.

This disparity is also evident in race. The hardest hit by the continual inflation are Black Americans followed by Latinos and then white. An increase in the minimum wage would raise the real incomes of 39% of Black workers (38% of black women) and lift them out of poverty. Economists have projected that if the minimum wage is increased to $15 per hour, it would pump $120 billion into the economy and increase consumer spending.

Consumer spending is good for the economy because it would lead to more economic activity. Business owners would be able to hire more workers, the productivity of the workers will increase and the volume of trade will also increase. This will have a domino effect throughout the economy.

Higher income is usually a driver for inflation, but in this case, wages are falling behind while everything else increases in cost. It is only logical that the minimum wage should follow the trend and be adjusted for inflation.