This act was one of the most important pieces of labor legislation which guaranteed a pay rate of $.25 an hour, and created a 40 hour work week. President Franklin Delano Roosevelt called this legislation the most important part of the New Deal since the introduction of Social Security (Grossman 1). When the minimum wage was created over 70 years ago, the coverage only applied to about 20 percent of the labor force, and now due to comprehensive expansion, covers nearly 84 percent of the labor force. Since the introduction of the federal minimum wage in 1938, the wage has been increased 22 separate times, up until 2009. The most recent increase was in 2009, and the federal minimum wage was increased to $7.25. Because many see this minimum wage as very low, many states have created their own separate minimum wage, which applies to only their citizens. Currently 21 states have raised their minimum wage higher than $7.25, with New York State and California being the highest with $15 an hour. However, there are a total of 5 states, Alabama, South Carolina, Mississippi, Louisiana, and Tennessee that have no statewide minimum wage (UC Davis). In recent years, there have been many protests for the country to raise the minimum wage once again. According to The United States Department of Labor, if inflation is taken into account, the minimum wage in 1950 is higher than the minimum …show more content…
Before there were cases where minimum wage increases have proven to be beneficial, there were theories on what would happen if the minimum wage was increased. One of the theories is that when the minimum wage is increased employers will have to massively fire many of their workers. While an immediate jump of the minimum wage could hurt small business, the legislation calling for a minimum wage does so in a responsible way. Minimum wage affecting small businesses is one of the main reasons people do not want the increase. A 2015 study concluded that 3 out of 5 small business owners approve of a minimum wage increase to $12 an hour (Department of Labor). Wages would be increased over a few years, giving employers the time needed to adapt to a raise in wages. According to the Washington Post, there were “no evidence of job loss” with regards to a minimum wage increase (Bernstein). Minimum wage affecting small businesses is one of the main reasons people do not want the increase. Another reason people don't support a minimum wage increase is the thought that there are only teenagers who are working minimum wage jobs. The idea is that minimum wage jobs should be used to gain experience, and as a stepping stone to other higher paying jobs. This couldn’t be farther from the truth. In previous years the minimum wage was used as a stepping stone, but because it