The push to raise the minimum wage is relentless.
For a while, it was "Fight for $15," but with rampant price inflation, a $15 an hour minimum wage isn't sufficient. Now it's "Fight for $20." Heck, it might even be "Fight for $25" at this point.
I understand people's frustration with wages. Their pay doesn't keep up with rising prices.
But here's the dirty little secret - we don't have a wage problem.
We have a money problem!
What have they done to our money?
Before 1964, quarters were 90 percent silver.
That all changed in 1965 with the passage of the Coinage Act.
Under the law signed by President Lyndon B. Johnson, the U.S. Treasury removed all of the silver from dimes, quarters, and half-dollars. Instead, the government mints coins from “composites, with faces of the same alloy used in our 5-cent piece that is bonded to a core of pure copper.”
You will sometimes hear coins minted before 1965 referred to as “junk silver.”
In reality, we should call modern American coins junk.
Johnson promised removing silver would have no impact on the value of US coinage, asserting that “[The] Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin."
You'll be shocked to learn he was lying.
The minimum wage reveals the ugly truth
In 1964, the minimum wage stood at $1.25 per hour. That's the equivalent of five silver U.S. quarters. Remember, they were 90 percent pure silver.
Today, the melt value of a 1964 silver quarter is $5.13.
That means if you got paid five pre-1965 quarters today, you would hold $25.65 in your hands.
There’s your living wage.
So no, we don’t have a wage problem. We have a money problem.
And the government caused it!
Money Metals Exchange and its staff do not act as personal investment advisors for any specific individual. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. Readers and customers should be aware that, although our track record is excellent, investment markets have inherent risks and there can be no guarantee of future profits. Likewise, our past performance does not assure the same future. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing through Money Metals, you understand our company not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. This Website is provided “as is,” and Money Metals disclaims all warranties (express or implied) and any and all responsibility or liability for the accuracy, legality, reliability, or availability of any content on the Website.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory near 1.1000, looks to post weekly gains
![EUR/USD stays in positive territory near 1.1000, looks to post weekly gains](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/colorful-euro-banknotes-3397150_XtraSmall.jpg)
EUR/USD trades modestly higher on the day at around 1.1000 in the American session on Friday. Although the cautious market stance limits the upside, the pair remains on track to post its highest weekly close of 2024.
GBP/USD climbs to multi-week highs above 1.2900
![GBP/USD climbs to multi-week highs above 1.2900](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-170160529_XtraSmall.jpg)
GBP/USD trades at its highest level in three weeks at around 1.2900 in the American session on Friday. The bearish opening seen in Wall Street points to a negative tilt in risk mood and makes it difficult for the pair to gather further bullish momentum.
Gold retreats after setting a new record high of $2,500
![Gold retreats after setting a new record high of $2,500](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacked-gold-bars-13094022_XtraSmall.jpg)
Gold stages a technical correction and trades below $2,490 after setting a new record high of $2,500 earlier in the day, boosted by falling US Treasury bond yields. Profit-taking could ramp up the volatility heading into the weekend.
Dogecoin price is set for a downturn as it encounters its resistance barrier
![Dogecoin price is set for a downturn as it encounters its resistance barrier](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Dogecoin/Doge_Coin_31_02_XtraSmall.jpg)
Dogecoin price is testing the resistance around the 100-day EMA at $0.1073, with an impending decline ahead. On-chain data shows DOGE's daily active addresses decreasing and dormant wallets moving again, signaling a bearish move.
Easing inflation worries despite robust sales data
![Easing inflation worries despite robust sales data](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Prices/Inflation/inflation-80587109_XtraSmall.jpg)
The market mood got a further boost yesterday after the latest data release from he US hinted that the economy is not doing that bad, after all.