Due to inflation, the value of a single dollar gets smaller. Inflation, according to Investopedia, is defined as the sustained increase in prices of goods. Therefore, if prices are higher, each dollar owned will buy a smaller portion of things than it could have compared to just three years ago. If a bottle of water costs $1.00 two years ago, but it costs $5.00 now, inflation has skyrocketed and therefore the dollar of two years ago is five times stronger than the current dollar.
This is a bit of an extreme example, but it’s a good way to demonstrate what inflation does to the dollar. Due to this, if wages stagnate and don’t rise with inflation, the wages paid to minimum wage workers is harder to live
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