Real GDP in the United States - Assignment Example

Some of the products that have gone up in price the most are food items, medical expenses, gasoline, and energy costs. The minimum wage salary was held at $5.15 for a long time. In 2007 the government finally made changes to its minimum wage law to gradually increase the minimum wage to eventually reach $7.25 within three years (Taxpolicycenter). Inflation has been depleting the budgets of many American families for a long time. The main problem with the real wages of American workers is that money is simply not worth what it used to be. The purchasing power of money has decreased a lot and as a consequence, Americans cannot buy as many goods and services as they used to with the same money.