The History of Minimum Wage

The History of Minimum Wage

Introduction

This paper gives a brief review on minimum wages and their possible effects on employment, with particular focus on the likely effects of minimum wage introduction in the two excluded sectors, namely the Domestic and Agricultural sectors. It briefly outlines research results on minimal wages from recent studies, highlighting their main recommendations. The paper concludes that minimum wage increases result in a trade-off, and no matter how well intended come with a price in the form of lost jobs for some and increased benefits for others. We will thoroughly discuss the Great Depression in United States of America that how it leads the governmental policies and codes of conduct and gives the prosperity to the nation and provide opportunities for the business forces and workers, we also are going to discuss some facts and figure about the laws of the government and regulatory authority (Unitarian universalist, 1996).

Discussion

Background

After the enormous depression, Congress United States of America in 1933 established the commission for minimum wage for local states governments and federal governments. After the serious depression, United States of America faces the economic challenges where the wages and compensation for labor and employees was the biggest challenge after the inflation and food shortage. Commission consist on members belongs to the local and federal government. They have decided to fight the challenge because the poverty, inflation which lowering the value of the dollar and unemployment rising very abruptly which was affecting the economy of the United States of America and the rest of the world. America is the biggest economy in the world due to which generally affects others countries economy. Increasing living cost was one of the reasons of minimum wages. The purchasing power of the person is lowering day by day and it is value peaked to it is the previous value. The rising living cost will exceed interrupted increase in the minimum wage. Commission gives the name of the idea consisting the minimum wage and laws “NEW DEAL” in the supervision of President of the United State of America Franklin D. Roosevelt. They postulate and main idea beyond his study for minimum wage will discuss in the below given paragraph.

After the immense gap, United States of America faces the inflationary challenge after the doomsday of America`s history 9/11, 200, and inducing in the war of terrorism with Afghanistan (Taliban). America is now again beneath the burden of the defense budget, and rehabilitation of the economy and other major challenges like unemployment, labors wages, poverty and opportunities. America has to make intelligent decisions to cover up the loss. In 2007 in the Government of George, W. Bush the president of United States of America, congress agrees to increase the wages to $7.25; this is the maximum wages all time for the citizens of the American State. This later called the “living wage”, which gives a boost to the economy and enhance the living standards of the citizens that one can afford ...