Minimum Wage Law

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The minimum wage law was a law passed that guaranteed workers a certain amount of pay all the time, which basically covered every job in the United States, especially jobs involving interstate commerce or those in the production of goods used for interstate commerce. Whether a person was shoveling poop in an alley for the city, or designing cars for Chevrolet; they were all guaranteed a certain amount of pay.

Passed in 18, was passed in 18 as part of the Fair Labor Standards Act (FSLA). Originally, the minimum wage law applied to workers who were engaged in interstate commerce and the production of goods for interstate commerce. This law applied to around 11.0 million of 54. million workers. The minimum wage was set at $.5 per hour. Since 18 the wage limit has been changed 6 times, with the most recent one on September 1, 17. The majority of occupations included in the minimum wage laws have steadily increased until, at present, the majority of jobs in the United States are covered.

In 161 Amendments to the minimum wage law extend coverage primarily to employees in large retail and service trades as well as local transit, construction, and gasoline service station employees. Also in 166 the minimum wage law extended coverage to state and local government employees of hospitals, nursing homes, and schools and to employees of laundries, dry cleaners, large hotels and motels, restaurants, and farms. Later amendments extended coverage to the remaining federal, state and local government employee not protected in 166, to certain workers in retail and service trades previously exempted, and to certain domestic workers in private household employment. Since 180 the minimum wage has increased $.15.

Despite increases in the minimum wage during the 10s, the buying power of the federal minimum wage has declined by nearly 5 percent over the last 0 years. In fact, the prevailing minimum wage is not high enough to afford a two-bedroom home at fair-market rent anywhere in America. The federal minimum wage is $5.15 per hour. The Fair Minimum Wage Act would raise the minimum wage to $5.0 per hour 60 days after enactment and to $6.65 per hour one year after that. This measure would put money into the hands of 10-1 million low-wage workers, bolstering consumer income and spending for workers who do not receive income tax cuts.

I think the minimum wage law is a great idea because it encourages people to work without having to worry about underpay, and overwork. Since the minimum wage law was passed poverty decreased, more people are working, and it has opened many more jobs for the American worker. For example, because of the minimum wage law, a worker does not have to worry about getting underpaid, therefore more people would be encouraged to work, which increases the unemployment rate. Because more people are working and more jobs are available poverty would decrease which is nothing but positive issues for the United States. There would be less homeless people, cleaner cities, and an all around nicer environment. However, because of technology advancing so rapidly and prices on goods increasing daily, I feel we should once again raise the minimum wage law to $6.15. $5.15 an hour now is just not enough to get along in today's competitive world.

In conclusion an increase in minimum wage does NOT create a higher unemployment rate simply because when people are guaranteed a higher pay than what they are used to, the demand for jobs will be higher, which in turn creates a greater supply for jobs. Because of more jobs available and more people working the unemployment rate will decline and more people will be working. With a high demand for work and an increasing supply for jobs, the minimum wage limit slightly increases every few years. Since 18 the wage limit has increased $4.0 and will continue to increase as long as there is a demand for jobs. Without a wage limit businesses could pay as low as they wanted, and people without jobs would constantly be searching for high pay, which would mean tons of people would be without work. Poverty would go up, as well as crime, and deaths due to unclean living facilities and towns. Therefore, with a minimum wage limit set, it would help our country in many, many ways, and the unemployment rate would decrease.

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