A Brief History of the U.S. Minimum Wage | ABC News

Summary

The history of the U.S. minimum wage is deeply rooted in workers’ struggles for fair pay, starting with the 1912 Lawrence textile strike. Over the decades, federal and state legislation, including the Fair Labor Standards Act of 1938, shaped wage policies. While the federal minimum wage peaked in 1968, its value has declined, sparking ongoing debates and protests for higher wages, especially in industries like fast food. Today, some cities have raised wages to $15 an hour, but the fight for fair compensation continues, echoing the efforts of early labor movements.

Takeaways

• 😀 The minimum wage debate in the U.S. has been ongoing for over 100 years, focusing on fair compensation for the lowest-paid workers.
• 😀 The roots of the minimum wage movement can be traced back to 1912 with the Bread and Roses strike in Lawrence, Massachusetts, where 30,000 textile workers fought for higher wages.
• 😀 Massachusetts became the first state to recommend a minimum wage for women and children in 1912, following the success of the Lawrence strike.
• 😀 Henry Ford famously implemented a $5/day minimum wage in his factories in 1914, viewing it as a strategic move to reduce turnover and increase productivity.
• 😀 The Fair Labor Standards Act (FLSA) of 1938 established the first federal minimum wage at 25 cents an hour, alongside a 40-hour workweek and a ban on child labor.
• 😀 Despite the establishment of a federal minimum wage, the purchasing power of the minimum wage peaked in 1968 and has steadily declined since then.
• 😀 Since the 1960s, the minimum wage has been raised 22 times by Congress, but its real value today is significantly lower than in past decades.
• 😀 In response to federal stagnation, many states, such as California and Massachusetts, have set their own higher minimum wages, with California reaching $15 an hour.
• 😀 The fight for higher wages continues with cities like Seattle raising the minimum wage to $15 an hour, while a nationwide push for a living wage gains momentum.
• 😀 The ongoing minimum wage struggle owes much to the historic labor movements of the early 20th century, with workers today continuing the fight for fair compensation.

Q & A

What event marked the beginning of the movement for a federal minimum wage in the United States?

The movement for a federal minimum wage in the United States began with the 1912 Bread and Roses strike in Lawrence, Massachusetts, where 30,000 textile workers protested wage cuts, sparking national attention and action.

How did Henry Ford contribute to the idea of a minimum wage in the early 20th century?

In 1914, Henry Ford raised wages in his factories to $5 a day, which was considered a progressive move at the time. He believed it would reduce turnover and increase productivity, while also setting a precedent for higher wages in industry.

What major legislation established the first federal minimum wage in the United States?

The first federal minimum wage was established by the Fair Labor Standards Act (FLSA) of 1938, which set the wage at 25 cents per hour, alongside instituting 40-hour work weeks and banning child labor.

What was the significance of the National Industrial Recovery Act (NIRA) during the Great Depression?

The NIRA, passed in 1933, gave President Franklin D. Roosevelt the authority to regulate industry, including encouraging employers to reduce hours and raise wages as part of economic recovery efforts during the Great Depression. It was an early effort to address workers' wages on a national scale.

What was the Supreme Court's reaction to the National Industrial Recovery Act (NIRA)?

In 1935, the U.S. Supreme Court ruled that the NIRA was unconstitutional, which led to a significant challenge for FDR’s administration in advancing labor reforms. This ruling hindered federal efforts to set minimum wage standards and regulate industry during the Depression.

How did the Fair Labor Standards Act (FLSA) affect workers in the United States?

The FLSA, passed in 1938, set a federal minimum wage of 25 cents per hour, mandated 40-hour work weeks, and abolished child labor, fundamentally changing labor laws in the U.S. and providing basic protections for workers.

When did the purchasing power of the federal minimum wage peak, and what was its value at the time?

The purchasing power of the federal minimum wage peaked in 1968, when it was equivalent to $10.50 per hour in today's money.

What recent efforts have been made to raise the federal minimum wage?

Efforts to raise the federal minimum wage have included a 2014 proposal to increase it to $10.10 per hour, but the bill was filibustered in the Senate and the federal minimum wage remains at $7.25 per hour.

Which U.S. city was the first to implement a $15 per hour minimum wage, and when did this happen?

Seattle became the first U.S. city to raise its minimum wage to $15 per hour, implementing the new rate in 2014.

What is the current debate surrounding the minimum wage in the U.S. about?

The current debate centers on whether the federal minimum wage should be raised to a 'living wage' that ensures workers can afford basic living expenses, with some advocating for a $15 per hour wage, while others question the economic impact of such a large increase.