History of Federal Minimum Wage Rates Under the Fair Labor Standards Act

U.S. Department of Labor ^

[EveningStar]

Go to the site to read the chart. The first minimum wage was 25 cents in 1938!

[EveningStar]

ping

[Onelifetogive]

This should be an EASY fix for the GOP. Index the stupid minimum wage for inflation*. EVERY YEAR the minimum wage would rise slightly and the Dims would lose one of their perennial campaign issues.

* Inflation typically falls slightly behind wage growth every year. Thus, the minimum wage, which has not kept pace with normal wage growth, will continually fall further and further behind.

Social Security payments and Congressional Salaries are indexed, might as well index the minimum wage, as well.

[cotton1706]

The minimum wage was enacted so nobody could undercut the unions. And to this day, whenever the minimum wage is increased, the unions get an automatic (and unearned) increase. That's why the bill never reads "the minimum wage in the United States shall be...", it reads "an amendment to the Fair Labor and Standards Act", so that all the other provisions and tripwires kick in with every increase.

[dinoparty]

Not a fix ... The dems will simply say that the index needs to be changed so that the min wage increases faster!

[Beagle8U]

Minimum wage jobs were never intended to be a career option.

There is no need for the Government to set an arbitrary wage, the market can do that.

[econjack]

What's even more enlightening is the relationship between unemployment and minimum wage increases. The minimum wage is designed to help the low-skilled, young, inexperienced, often minority worker. When the minimum wage is increased, the employer, seeing his costs rise, can't afford to keep all his workers because he is often in a highly-competitive market (e.g., fast food, retail sales, etc.). So he fires the least-productive worker, who often is a young, inexperienced, often minority worker.

If increases in the minimum wage are good for workers (and not just some political ploy), raise it to $50/hour and really help the low-wage worker.

[So Cal Rocket]

If the original Minimum Wage of $0.25/hour were indexed to the Consumer Price Index in 1938, the current Minimum Wage would be around $3.25/hour.

[Onelifetogive]

Not a fix ... The dems will simply say that the index needs to be changed so that the min wage increases faster!

Yes, but indexing it would steal away 50 or more votes in Congress each year. It would easily turn a close call (the current situation) into a lost cause for the Dims.

[Onelifetogive]

There is no need for the Government to set an arbitrary wage, the market can do that.

I agree, but, in politics, winning is most important. You don't get to implement your priorities unless you win.

I see indexing the minimum wage as taking the issue off the table WITHOUT causing ANY harm to the economy. Burger-flippers, IN ALABAMA of all places, can make 7-8 bucks an hour already.

[Beagle8U]

You are one of the few that know of that little known fact.

Unions push the minimum wage because they get an automatic raise if it goes up, many dollar for dollar.

[Beagle8U]

"I see indexing the minimum wage as taking the issue off the table WITHOUT causing ANY harm to the economy."

Inflation does harm the economy! You can take that issue off the table by explaining the reason liberals push raising it, to boost the wages of overpaid union workers!

[Republicus2001]

25 cents? Where's the outrage? Min should be $100 per hour - that way there will finally be a level field

[EveningStar]

The chart is very interesting. It's amazing to see how the rates have jumped over the years.

[Onelifetogive]

Inflation does harm the economy!

I am not advocating inflation. I am advocating raising the minimum wage by 5-10 cents per year so that the Dims never get the momentum to raise it by $2 over two or three years.

Uncertainty is a much bigger problem for businesses than a small increase in the minimum wage. It is difficult to plan for a business when the cost of labor could jump significantly based on an annual vote in Congress.

I would NOT have supported indexing the minimum wage to inflation a decade ago right after it was raised, but it has now fallen so far below typical entry-level wages that 1) pressure is building to raise it significantly, and 2) it can be indexed to inflation without any significant impact on the economy or anyone's wages. People tend to get COLA type increases anyway.

[TheDon]

The minimum wage law should be abolished.

[Beagle8U]

"People tend to get COLA type increases anyway."

I'm not talking about Cola increases, I'm talking about union contracts that would raise their wage a dollar if the min. wage goes up a dollar. They would still get the COL raises on top of that.

Its a scam.

[Onelifetogive]

if the min. wage goes up a dollar.

That's the uncertainty that we should take off the table. 3% increase on $5 minimum wage is 15 cents. Businesses (and unions) could count on increases something like 15 cents a year. That would take 10 years to add the $1.5 to $2 that congress is debating adding over three years.

[GeronL]

back when the dollar was worth about ten times more than it is now.

[dalereed]

The minimum wge hurts the low wage worker most.

Whenever it kicks in every industry wants the same percentage increase, then business raises prices to reflect it PLUS A PROFIT ON THE INCREASE so in reality everyone working for wages becomes a loser but the bottom end loses the most in purchasing power.