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A Pound of Ground Beef Now Costs More Than the Federal Minimum Wage
By Adam Hardy MONEY RESEARCH COLLECTIVE
The typical American consumes nearly 60 pounds of beef each year. Widely available and easy to prepare, ground beef serves as a grocery mainstay for many families — which means skyrocketing prices matter.
The cost of a pound of ground beef has hit a major threshold. Depending on where you shop, the grocery staple likely costs more than the federal minimum wage.
Money analyzed ground beef prices at seven of the most popular grocery chains across the U.S., finding that 1 pound of the typical 20% fat ground beef costs between $6.49 and $8.96. Organic, grass-fed and leaner varieties tend to cost much more.
On the other hand, the federal minimum wage sits at $7.25 per hour.
The U.S. Department of Agriculture estimates that the typical American consumes nearly 60 pounds of beef each year. Widely available and easy to prepare, ground beef serves as a grocery mainstay for many families, and lately, prices have been skyrocketing.
According to the latest inflation data, the average price of a pound of lean ground beef is $8.34. On Friday, USDA reported that the cheapest variety of ground beef was $5.41 per pound on average, while ground beef patties cost nearly $8 per pound.
Rising beef prices are due in large part to an ongoing cattle crisis. According to a blog post from the American Farm Bureau Federation beef cow inventory has hit the lowest point since 1961. Farmers are dealing with severe droughts and infectious diseases that are decimating their herds. Yet demand from shoppers remains strong, and that translates into higher prices on the shelf.
As the cost of groceries continues to strain budgets, ground beef prices — much like gas prices — serve as a common source of sticker shock for shoppers.
Federal minimum wage vs. beef prices
The federal minimum wage has not budged since July 2009, when it reached $7.25. This 17-year stagnation is the longest in U.S. history.
At the time the $7.25 national minimum wage was set, a pound of ground beef cost about $2.20 per pound, meaning one hour of work could purchase more than three pounds of beef — enough to make a dinner or two for a family of four.
Now, it can barely cover one.
Ground beef prices ticking above the federal minimum wage is a largely symbolic development. Not counting tipped workers, only about 82,000 Americans earn $7.25 an hour. According to the National Conference of State Legislatures, 33 states and Washington, D.C., have set minimum wages higher than the federal floor.
D.C., for example, has the highest minimum wage in the country, at $17.50 an hour.
Nonetheless, rising beef prices represent the constraint that many Americans experience as the cost of daily life grows.
Since 2020, the cost of groceries has spiked over 31%, and there’s no indication that they’re on the way down. In fact, experts are bracing for just the opposite. The ongoing Iran War is disrupting global trade routes, which has threatened fertilizer shortages, while oil prices have jumped about 50%.
Both issues could contribute to higher prices at the checkout counter.
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Adam Hardy is Money's lead data journalist. He writes news and feature stories aimed at helping everyday people manage their finances. He joined Money full-time in 2021 but has covered personal finance and economic topics since 2018. Previously, he worked for Forbes Advisor, The Penny Hoarder and Creative Loafing. In addition to those outlets, Adam’s work has been featured in a variety of local, national and international publications, including the Asia Times, Business Insider, Las Vegas Review-Journal, Yahoo! Finance, Nasdaq and several others. Adam graduated with a bachelor’s degree from the University of South Florida, where he studied magazine journalism and sociology. As a first-generation college graduate from a low-income, single-parent household, Adam understands firsthand the financial barriers that plague low-income Americans. His reporting aims to illuminate these issues. Since joining Money, Adam has already written over 300 articles, including a cover story on financial surveillance, a profile of Director Rohit Chopra of the Consumer Financial Protection Bureau and an investigation into flexible spending accounts, which found that workers forfeit billions of dollars annually through the workplace plans. He has also led data analysis on some of Money’s marquee rankings, including Best Places to Live, Best Places to Travel and Best Hospitals. He regularly contributes data reporting for Best Colleges, Best Banks and other lists as well. Adam also holds a multimedia storytelling certificate from Poynter’s News University and a data journalism certificate from the Investigative Reporters and Editors (IRE) at the University of Missouri. In 2017, he received an English teaching certification from the University of Cambridge, which he utilized during his time in Seoul, South Korea. There, he taught students of all ages, from 5 to 65, and worked with North Korean refugees who were resettling in the area. Now, Adam lives in Saint Petersburg, Florida, with his pup Bambi. He is a card-carrying shuffleboard club member.