The problem is that, nationally, the minimum wage has not been a living wage for many years. Why? Because with higher wages, workers quit less frequently, and turnover went down. The answer is Franklin Delano Roosevelt, when the original minimum-wage law was passed in 1933. One famous study showed that a higher minimum wage in one of two neighboring cities led to more fast-food jobs in the city where the minimum went up. Unemployment is the result of this well-meaning but misguided practice.Īs often happens, the facts do not agree. Further, they say that by meddling in the “labor market,” government can only set a minimum wage that is too high, and employers will not hire those workers. Hence the wage that is, is right and just. A very large share of those were young, with half of minimum wage workers age 25 or younger, and many of those earned tips in addition to their wages.Īnd yet, few economic policies have been subjected to such obsessive criticism, in particular by mainstream (which is to say, conservative) economists, as the minimum wage.Įconomists teach that markets reward each worker exactly according to what he or she contributes, not more nor less. Roosevelt delivers a fireside chat on government and capitalism, September 30, 1934.
But our workers with hand and brain deserve more than respect for their labor. Home Of Franklin D Roosevelt National Historic Site. In 2016, the total number of workers earning at the minimum or below was just 2.2 million-not even 3% of the employed workforce at that time. We insist that labor is entitled to as much respect as property. Second, because the level is so low, few workers are affected. It was then eroded by inflation and political neglect, and is today no higher than it was around 1980.
Johnson in 1968, at about $10.50 in today’s money. The theory of media events developed by Dayan and Katz is extended in an analysis of Franklin Roosevelts first eight fireside chats. That value reached a peak 50 years ago under President Lyndon B. Why has this been so? First, the real value of the minimum is low.
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