By Gabrielle Smith
The federal minimum wage is used to establish a base level pay across the country. This means that employers are required to pay a certain amount of money to their employees. Although this is the base level pay many states do have their own minimum wage standard established and many companies will pay employees more than the federal minimum wage, however, this can fluctuate from company to company.
The term minimum wage was created in Congress under the Fair Labor Standards Act (FLSA) during the Franklin D. Roosevelt administration in 1938. Minimum wage was created in order to assist in decreasing class stratification. It guarantees employees a suitable wage for the time being. It was also used to boost the post-depression economy.
When this act was created the minimum wage was only ¢25 cents an hour. It has obviously increased since then, but not by much. The current federal minimum wage is $7.25 an hour and has not changed since 2009. It has been over a decade since the minimum wage has been raised and it does not provide the working-class viable payment for living expenses.
Congress has recently proposed to increase the federal minimum wage to $15 an hour., which would be a huge improvement to the current condition. This increase would provide working individuals with an appropriate living wage to cover necessity expenses. Improving current wage would be a supreme step towards creating a boost to the economy since the pandemic has caused it to suffer.
The federal minimum wage act is important because it sets the standard. If it is increased, then businesses will feel obligated to pay their employees more in order to compare to their competitors. When it takes the country over a decade to increase the minimum wage while continuing to increase the cost of living creates a dire issue. This aspect of the government seems dishonest and should be dealt with in order for the country to run a bit more smoothly.
