According to the Associated Press, Colorado will become the first state to reduce its minimum wage due to a “falling cost of living.”
Colorado is one of 10 states where the minimum wage is tied to inflation. The indexing is thought to protect low-wage workers from having flat wages as the cost of living goes up.
But because Colorado’s provision allows wage declines, the minimum wage will drop because of a falling consumer price index. It will be the first decrease in any state since the federal minimum wage law was passed in 1938.
Sure sounds like DE-flation to me!