Minimum Wage

Minimum Wage

The minimum wage is a critical social economic safeguard, setting a wage floor that should allow workers to meet their basic needs. The national minimum wage was first instituted in 1938 as a central feature of the Fair Labor Standards Act (FLSA). The Act also established overtime and child labor standards. It has been amended many times to increase the wage or expand coverage. Workers in some industries, such as agriculture, are exempt. The minimum wage is set by Congress, not by an independent agency as President Franklin Roosevelt originally proposed. It is not pegged to the cost of living and the real value of the federal minimum wage lags behind inflation. As a result, many states and cities have set their minimum wage rates higher than the federally mandated wage.

Commentary

Consider the Source: 100 years of Broken Record Opposition to the Minimum Wage

March 09, 2013

Chamber of Commerce, Wrong Again

May 19, 2011

Cry Wolf Quotes

The problem is raising the minimum wage actually hurts, not helps, low-income workers. Minimum wage laws make it illegal to have a job that pays below the government mandated limit. If that wage is more than a job provider will pay for a certain job, then no worker can get—or keep—that job.

-
Martin, Catherine, Mackinac Center for Public Policy.
03/01/1999 | Full Details | Law(s): Minimum Wage

If raising the minimum wage to $12 or $15 per hour will raise the standard of living for the working poor, why stop there? Why not raise the standard of living for the middle class as well by increasing the minimum wage to, say, $25 an hour? If we raised it to $100 an hour, we could have the best standard of living in history!

-
Summers, Adam, Orange County Register.
08/18/2003 | Full Details | Law(s): Minimum Wage

We cannot legislate prosperity. When we increase minimum wages by legislative fiat, we kill jobs. Government creates nothing but what it has first taken away.

-
Fox Business’ John Stossel.
04/30/2010 | Full Details | Law(s): Minimum Wage

[The Fair Labor Standards Act] would create chaos in business never yet known to us.... It sets an all-time high in crackpot legislation. Let me make it very clear that I am not opposed to the social theory.... No decent American citizen can take exception to this attitude. What I do take exception to is any approach to a solution of this problem which is utterly impractical and in operation would be much more destructive than constructive to the very purposes which it is designed to serve.

-
U.S. Representative Arthur Phillip Lamneck (D-OH).
11/16/1937 | Full Details | Law(s): Fair Labor Standards Act

Related Laws and Rules

Evidence

Backgrounders & Briefs

Good Rules: Ten Stories Of Successful Regulation

Demos looks at ten laws and rules that we take for granted.

Minimum Wage Policy Brief

By Professor Stephanie Luce

The idea of minimum wage laws has been around for more than a century. They are still a good idea.

Resources

Raise the Minimum Wage is a project of the National Employment Law Project. The effort is devoted to preserving the wage floor by raising the federal minimum wage.

University of California-Berkeley Labor Center carries out research on labor and workplace-related issues.

The National Employment Law Project is an organization that promotes economically just public policy in the face of the prevailing trends of the law several decades.