The Minimum Wage Is A Good Or Not? Essay

Decent Essays
One of the most talked about subjects in the U.S economy is the topic of minimum wage. What is it? Why people talk so much about it? Why should you care about that topic or even pay attention to that? This paper will try to answer the question of why increasing a minimum wage is a good or not so good idea.
I. Definition and history of the minimum wage.
Let’s start with the definition of the minimum wage. Minimum wage is defined as a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job (Minimum Wage 2015).
The history of the minimum wage goes back to 1938 when President Franklin D Roosevelt signed in to law the Fair Labor Standard Act (FLSA). Part of the act was the establishment of minimum wage of a $0.25 per hour in order to maintain a “minimum standard of living necessary for health, efficiency and general well-being, without substantially curtailing employment” (Act of June 25, 1938 (Fair Labor Standards Act), Public Law 75-718, 52 STAT 1060, n.d.). Fair Labor Standard Act of 1938 was implemented to solve two major economic issues at that time: protect the workers, and stimulate the economy suffering at that time from Great Depression. The federal government recognized the importance of financial stability among American citizens, and rebuilding the country’s economy at the same time.
Since 1938 the minimum wage has been increased several times in response to the rising cost of living and
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