Federal minimum wage: Difference between revisions
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{{US Minimum Wage Adoption}}<br><br> | {{US Minimum Wage Adoption}}<br><br> | ||
Today, the federal minimum wage | Today, the United States minimum wage is a highly controversial topic. Politicians and economists alike debate its effects and whether or not it should be raised. While these modern disputes are relevant, it is important to understand the arguments that originated during the 1920-30s; they have the potential to shed light on a topic that is still heavily contested.<br> | ||
[[Image:Minimum wage map.jpg|frame|right|Map depicting the difference between modern state wage floors and the national minimum]]The idea of the minimum wage in the US began in the early twentieth century. Individually, states began to set wage floors for various reasons, but many of these state-level minimum wages were short lived thanks to the tendency of the courts to shoot down such labor legislation [[Minimum Wage Adoption Sources |(Grossman 1978)]].<br> | |||
The federal government's first attempt to set a national minimum wage came in 1933 with the introduction of the National Industrial Recovery Act (NIRA) that was designed to help the country combat the economic hardship brought on by the Great Depression. Unfortunately, this law also fell victim to the courts on May 27, 1935 with the ''Schechter Corp. v. United States'' verdict. The Supreme Court found the Act unconstitutional for its interference in private business [[Minimum Wage Adoption Sources |(Grossman 1978)]].<br> | |||
Yet, after decision reversals by Supreme Court Justice Owen Roberts, it became relatively easier to pass labor legislation by the courts. In May of 1937, the first form of what would become the Fair Labor Standards Act (FLSA) was sent to Congress, calling for a forty cents an hour minimum wage, in addition to a maximum work week time and overtime laws. This version did was not able to pass through the House Rules Committee, however. The bill languished in political red tape as changes were made and votes taken. Finally, in June 1938, both the House and Senate passed the Act. President Roosevelt signed the FLSA into law on June 25, 1938, setting the first real national wage floor at twenty-five cents an hour (to compare, the federal minimum wage was raised to $5.85 on May 25, 2007). The FLSA went into effect on October 24, 1938 [[Minimum Wage Adoption Sources |(Grossman 1978)]].<br> | |||
This leads to the question of what allowed the federal wage to finally become law after facing so many obstacles in the past. This project seeks to examine how and why the United States came to set a national minimum wage, ultimately finding that while economic and social factors may have played a part, the political climate of the 1930s had a far more significant role.<br><br> | |||
{{US Minimum Wage Adoption}} | {{US Minimum Wage Adoption}} | ||
Latest revision as of 00:13, 4 December 2007
Overview | Early Minimum Wages | The FLSA - Reasons and Conflict | Conclusion & References
Today, the United States minimum wage is a highly controversial topic. Politicians and economists alike debate its effects and whether or not it should be raised. While these modern disputes are relevant, it is important to understand the arguments that originated during the 1920-30s; they have the potential to shed light on a topic that is still heavily contested.
The idea of the minimum wage in the US began in the early twentieth century. Individually, states began to set wage floors for various reasons, but many of these state-level minimum wages were short lived thanks to the tendency of the courts to shoot down such labor legislation (Grossman 1978).
The federal government's first attempt to set a national minimum wage came in 1933 with the introduction of the National Industrial Recovery Act (NIRA) that was designed to help the country combat the economic hardship brought on by the Great Depression. Unfortunately, this law also fell victim to the courts on May 27, 1935 with the Schechter Corp. v. United States verdict. The Supreme Court found the Act unconstitutional for its interference in private business (Grossman 1978).
Yet, after decision reversals by Supreme Court Justice Owen Roberts, it became relatively easier to pass labor legislation by the courts. In May of 1937, the first form of what would become the Fair Labor Standards Act (FLSA) was sent to Congress, calling for a forty cents an hour minimum wage, in addition to a maximum work week time and overtime laws. This version did was not able to pass through the House Rules Committee, however. The bill languished in political red tape as changes were made and votes taken. Finally, in June 1938, both the House and Senate passed the Act. President Roosevelt signed the FLSA into law on June 25, 1938, setting the first real national wage floor at twenty-five cents an hour (to compare, the federal minimum wage was raised to $5.85 on May 25, 2007). The FLSA went into effect on October 24, 1938 (Grossman 1978).
This leads to the question of what allowed the federal wage to finally become law after facing so many obstacles in the past. This project seeks to examine how and why the United States came to set a national minimum wage, ultimately finding that while economic and social factors may have played a part, the political climate of the 1930s had a far more significant role.
Overview | Early Minimum Wages | The FLSA - Reasons and Conflict | Conclusion & References
