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Minimum Wage in the United States

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Minimum Wage in the United States
Minimum Wage
In the United State

U.S. Minimum Wage

A minimum wage is the lowest hourly, daily, or monthly wage that employers may legally pay to employees or workers. The debate over minimum wage in the United States has been ongoing for over 100 years. It is a hot topic in labor, human interest, and especially in economics. Is the minimum wage too low? Is it too high? Should we have one at all? Does having a minimum legal wage help those who it is intended to help, or does it actually make them worse off? Theses questions are asked on a daily basis by interested parties. While there may not be one definitive correct answer, there are compelling arguments on both sides of the issue, and those who represent their “side” are passionate about their opinions. This is one of a few social topics about which people are generally not indifferent.

Much of the adult workforce in the United States has worked a minimum wage job at some point in their career, so we can easily relate to the challenges that face today’s minimum wage workers. This paper is not intended to solve the debate over minimum wage, nor will it attempt to persuade the reader in one direction or the other regarding what should be done concerning minimum wage. The pages that follow will present a brief history of the minimum wage debate in the United States, and then present some of the arguments offered by both sides of the debate.

A Brief History of Minimum Wage

Although New Zealand was the first country to formally enact minimum wage legislation in 1896,[i] the United States was one of the first major industrialized nations to set a national wage floor for their workers. For decades during the industrial revolution, workers in the United States endured work environments that consisted of long hours, dangerous working conditions, and low wages. Small movements to develop a national minimum wage by labor unions and activist groups were met with predictable resistance from


Cited: [viii] Sowell, Thomas (2007-04-02). Basic Economics (3rd Edition): A Common Sense Guide to the Economy pp. 210-221 [ix] “The Wages of Politics” [xiv] Wellington, Alison J., “Effects of the Minimum Wage on the Employment Status of Youths: An Update” Journal of Human Resources, Volume 26, no. 1 [xv] Neumark, David; William L Washer (2008) [xvi] Fuller, Dan: Geide-Stevenson, Doris (2003). “Consensus Among Economists: Revisited” Journal of Economic Education 34
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