Introduction:
Contrary to popular belief, minimum wage has not always been around. It was not started until after the Great Depression, when President Roosevelt won the election of 1936. Every couple of years the minimum wage is raised to account for inflation and the cost of living. However, this small, subtle change may have a huge effect on the country’s unemployment rate. Many studies show that raising the minimum wage would significantly increase the unemployment rate. There are many studies that back this theory up. However, there are still people who wish to increase the minimum wage.
History of Minimum Wage: In early 1938, the Fair Labor Standards Act (FLSA) was signed by President Theodore Roosevelt. This act protected American …show more content…
At first, mandatory minimum wages were ruled unconstitutional by the United States Supreme Court. They stated that it would “restrict the worker’s rights to set the price of his own labor” (Federal and State Minimum Wage Rates for 2018). With the lack of regulations and rules, employers forced thousands of day-laborers to work in horrible conditions for mere pennies a day. These conditions included sweatshops, factories, and unsafe working environments. Children were also forced to work. It was a common sight to see children younger than ten working in factories with industrial machines. Unfortunately, there was a huge accident and death rate during this …show more content…
However, they estimated the rates through the twentieth century. The highest unemployment rate on record happened during the Great depression. It peaked at an estimated 23.6%. This means that for every ten people about 2 of them were unemployed. The term unemployed is defined as “those who do not have a job, have actively looked for work in the prior four weeks, and are available to work, also those employees who are laid-off waiting to be called back to the same job” (Krulick). For example, a college graduate who is looking for a job is unemployed but a pregnant mother on bed rest is not. Even though she may not be working, she is not “available” to work. The lowest unemployment rate on record was recorded in 1944, during World War II. It was at 1.2%. Wartime is good for the unemployment rate because the economy is in overdrive, and trying to fuel the war. The lowest non-wartime rate was in 1953, at
Contrary to popular belief, minimum wage has not always been around. It was not started until after the Great Depression, when President Roosevelt won the election of 1936. Every couple of years the minimum wage is raised to account for inflation and the cost of living. However, this small, subtle change may have a huge effect on the country’s unemployment rate. Many studies show that raising the minimum wage would significantly increase the unemployment rate. There are many studies that back this theory up. However, there are still people who wish to increase the minimum wage.
History of Minimum Wage: In early 1938, the Fair Labor Standards Act (FLSA) was signed by President Theodore Roosevelt. This act protected American …show more content…
At first, mandatory minimum wages were ruled unconstitutional by the United States Supreme Court. They stated that it would “restrict the worker’s rights to set the price of his own labor” (Federal and State Minimum Wage Rates for 2018). With the lack of regulations and rules, employers forced thousands of day-laborers to work in horrible conditions for mere pennies a day. These conditions included sweatshops, factories, and unsafe working environments. Children were also forced to work. It was a common sight to see children younger than ten working in factories with industrial machines. Unfortunately, there was a huge accident and death rate during this …show more content…
However, they estimated the rates through the twentieth century. The highest unemployment rate on record happened during the Great depression. It peaked at an estimated 23.6%. This means that for every ten people about 2 of them were unemployed. The term unemployed is defined as “those who do not have a job, have actively looked for work in the prior four weeks, and are available to work, also those employees who are laid-off waiting to be called back to the same job” (Krulick). For example, a college graduate who is looking for a job is unemployed but a pregnant mother on bed rest is not. Even though she may not be working, she is not “available” to work. The lowest unemployment rate on record was recorded in 1944, during World War II. It was at 1.2%. Wartime is good for the unemployment rate because the economy is in overdrive, and trying to fuel the war. The lowest non-wartime rate was in 1953, at