The Importance Of The Federal Minimum Wage

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Across the United States, economists have debated the fruits of the minimum wage. Franklin D. Roosevelt introduced The Federal Minimum Wage Act in 1938, was the first federal minimum wage set in the United States. In the United States, the minimum wage has increased from its original twenty-five cents to its current seven dollars and twenty-five cents. Donald Trump and Bernie Sanders have taken divisive stances on the federal minimum wage. For example, Trump wants the states to set their own minimum wage while Sanders calls for a living wage. This difference in opinion between two relevant politicians is a clear indicator of the importance of the current federal minimum wage to the American people. Is the federal minimum wage effective in lifting Americans out of poverty? No, by itself the minimum wage is unable to make huge steps to get Americans out of poverty.
Why America Has a Federal Minimum Wage Before we can answer the question “Why can’t the minimum wage get Americans out of poverty?” we have to examine why the federal minimum wage was put into place. Congress is the branch of government which determines the federal minimum wage. Initially, the federal minimum wage was to create a ‘living wage’ and was part of the Fair Labor Standards Act (FLSA). A ‘living wage’ is vague, but the overall definition that authors can agree on is that a family must be able to afford to support themselves at the poverty line (Schmitt, Croes). The FLSA focused on establishing the bar
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