The hourly rate hasn't caught up with the cost of living since the late 1960s. According to a report by the National Low Income Housing Coalition, housing has become so expensive in the U.S. that a worker earning the minimum wage cannot pay the rent.
No state, county or city in the country allows a full-time minimum wage worker to pay for a two-bedroom home.
“A full-time minimum wage worker can only pay rent for a room in 7% of US counties - 218 counties out of a total of more than 3,000 nationwide.”
In fact, the income of a minimum wage worker with a family of four is well below the poverty line. While many states and some cities have minimum wage rates well above $7.25, those who earn the minimum wage still struggle to pay bills, find housing, and support a family.
Many states and cities have higher minimum wages, in some cases more than double, but it is still difficult for workers to go to extremes.
Proponents of raising the minimum wage argue that this helps incomes catch up with the rising costs of living and lift millions out of poverty. So, as things evolve, sure, you can live on minimum wage albeit without much dignity.