Minimum Wage Debate Essay

The American Minimum Wage Rate Debate

Introduction

The discussion about what to do with minimum wage laws in America has been at a higher level recently, with current events such as the protests by activists. These include the "#FightFor15" group. It is a topic that many people apparently feel needs to be discussed. Although the federal minimum wage has not been increased in over six years, by the end of 2015, 29 states and the District of Columbia will have minimum wage rates above the federal $7.25 an hour. There has been quite a bit of talk about what benefits a result of an increase in the minimum wage would bring. There has equally been as much discussion about what negative effects this legislation would bring in our society. My intention in writing this paper is to look at both sides of this argument, and to be as objective as possible when analyzing and describing the arguments for and against a federal minimum wage increase.

History of the

In the United States, the concept of the minimum wage has had a history of applications and alterations in line with prevailing economic conditions. When formally introduced into the American federal system in 1938, the federal minimum wage rate stood at $0.25 an hour (Oregonstate.edu). The poverty level is, among others that include changes in inflation, one of the factors used in setting the minimum wage rate. The highest rate was set at $10.85 per hour in 1968. The federal minimum wage rate changed three times to $5.85 in 2007, $6.55 in 2008 and $7.25 in 2009, where it still stands as at November 2015 (Oregonstate.edu). While it would be considered prudent to stick to the federal rate, most states have adopted their minimum wage rates. For historical illustrative purposes, the minimum wage rates of California and Washington will be