Umm. I think it might be to keep up with inflation.

Because the purchasing power of minimum wages has REDUCED since 1984.

In 1968, the US minimum wages was $1.68 -- that is $11.65 in 2018 dollar.

Right now, the minimum wages are at $7.25, frozen for the last 9 years. So it seems inflation took the first step. Minimum wages should be playing catch but is losing ground.

Inflation wins every time

It's a simple question with a complex answer. If they kept everything exactly the same that would be price controls which can only invariably lead to shortages, rationing, and hording. Allowing prices to fluctuate allows for somethings to become cheaper and other things to become more expensive. It also allows for the manipulation of the economy, like lowering interest rates when the economy is depressed. It also allows for the government to inflate it's way out of deficits and debt. I'm not saying all these things are necessarily good but that's the reason. The government wants an expanding economy and a low but increasing inflation. But yeah, the little guy always feels like I got $25 more a week and my expenses went up by $30.

It does not equal out though, income inequality is growing.

I remember when they were 25c. 5c is before my time.

The American dollar is devaluating.

The expansion of the money supply is vital to accommodate the expansion of the population.

Lolz