Why Is There a Minimum Wage?

Summary

The video delves into the history of the minimum wage, from its origins in the late 19th century in New Zealand and Australia to its eventual establishment in the U.S. in 1938. Initially created to protect vulnerable workers like women and children, the minimum wage became a crucial labor movement tool, spurred by strikes and uprisings. The Fair Labor Standards Act of 1938 set the first nationwide minimum wage at 25 cents per hour, and since then, it has been raised 22 times. The video highlights the ongoing debates around wage equity and the need for adjustments to meet the rising cost of living.

Takeaways

• 😀 The minimum wage was introduced as a protection for workers, ensuring they earned wages that align with the cost of living.
• 😀 The first minimum wage laws were implemented in New Zealand and Australia in the 1890s, initially aimed at protecting women and children in the workforce.
• 😀 Before minimum wage laws, industrial workers faced harsh conditions with little to no labor protections, leading to widespread exploitation and low pay.
• 😀 Key labor movements and strikes, such as the Pullman Strike of 1894, Newsboys Strike of 1899, and Bread and Roses Strike of 1912, were crucial in raising awareness and advocating for better wages.
• 😀 The U.S. passed the Fair Labor Standards Act (FLSA) in 1938, which established a national minimum wage of 25 cents per hour, alongside labor protections like a 40-hour workweek and the elimination of child labor.
• 😀 Despite opposition from business owners and Supreme Court rulings against earlier attempts, the FLSA was finally enacted, bolstered by public outcry and pressure from labor movements.
• 😀 The minimum wage was first introduced at the state level in 1912, initially focusing on women and children, as they were less able to join unions and had fewer protections.
• 😀 The FLSA has been amended multiple times, with the federal minimum wage being raised 22 times, most recently to $7.25 per hour in 2009, though many states now set higher rates.
• 😀 Labor movements played a significant role in driving policy changes, with strikes and protests pushing for reforms like fair wages and improved working conditions.
• 😀 The ongoing debate around the minimum wage centers on raising it to meet the cost of living, with some states and cities already implementing higher minimum wages to close the gap.

Q & A

What is the minimum wage and why was it introduced?

The minimum wage is the lowest legal rate of pay set by the government to ensure workers are paid fairly and can meet the basic cost of living. It was introduced in the late 19th century to protect vulnerable workers, such as women and children, from exploitation in industrial settings where workers had little control over their wages.

Which countries first introduced minimum wage laws?

New Zealand and Australia were the first countries to introduce minimum wage laws in the 1890s, aimed primarily at protecting the labor of women and children. These laws were later adopted in other countries, including the UK and the U.S.

How did the rise of industrial factories contribute to the need for minimum wage laws?

The rise of industrial factories in the 19th century led to poor working conditions, low pay, and long hours. Factory owners had little regard for employee welfare, which often led to exploitation, particularly of women and children. This created a need for legal protections, including minimum wage laws, to ensure workers received fair compensation.

How did labor movements and strikes influence the establishment of minimum wage laws in the U.S.?

Labor movements and strikes played a significant role in the establishment of minimum wage laws. Strikes like the Pullman workers' strike of 1894 and the Bread and Roses strike of 1912 raised public awareness about the exploitation of workers and put pressure on lawmakers to introduce protections, including minimum wage legislation.

What was the impact of the Fair Labor Standards Act (FLSA) of 1938 on the U.S. workforce?

The Fair Labor Standards Act (FLSA) of 1938 established a nationwide minimum wage of 25 cents per hour, along with provisions for overtime pay, child labor laws, and a 40-hour workweek. It was a landmark piece of legislation that set the foundation for modern labor rights in the U.S.

Why were women and children initially the focus of early minimum wage laws in the U.S.?

Early minimum wage laws in the U.S. primarily focused on women and children because they were seen as more vulnerable to exploitation in the workplace. These groups were less likely to have union protections, making them more dependent on government intervention to secure fair wages.

What role did strikes, like the Newsboys Strike of 1899, play in labor law reforms?

Strikes like the Newsboys Strike of 1899 highlighted the harsh conditions and unfair pay faced by workers. The protests by newsboys against price hikes showed how low wages and poor working conditions affected even young workers. Their actions helped raise awareness and pushed for stronger labor laws, including minimum wage protections.

How did the U.S. Supreme Court impact the development of minimum wage laws before 1938?

Before 1938, the U.S. Supreme Court played a critical role in blocking the implementation of minimum wage laws. In cases like *Adkins v. Children's Hospital* (1923) and *Hammer v. Dagenhart* (1918), the Court ruled against minimum wage and child labor laws, citing them as unconstitutional. It wasn’t until the passage of the Fair Labor Standards Act in 1938 that minimum wage laws were solidified at the federal level.

What was the first federal minimum wage set by the Fair Labor Standards Act?

The first federal minimum wage, set by the Fair Labor Standards Act (FLSA) in 1938, was 25 cents per hour. This rate applied to eligible employees and was intended to ensure workers received a fair wage that could cover basic living expenses.

How has the minimum wage changed since its introduction in the U.S.?

Since its introduction in 1938, the U.S. federal minimum wage has been raised 22 times, with the most recent increase occurring in 2009 when it reached $7.25 per hour. However, many states and cities have set their own higher minimum wages to better match the cost of living.

What are the ongoing debates surrounding the minimum wage in the U.S. today?

Ongoing debates around the minimum wage in the U.S. focus on whether the current federal rate of $7.25 per hour is sufficient to meet the cost of living, particularly as inflation and living expenses continue to rise. Advocates call for a higher minimum wage, while opponents argue it could negatively affect businesses and lead to job losses. There are also concerns about disparities in wages across different regions and industries.