English 199: Federal Minimum Wage

Thomas Sibert        

Professor Dr. Thomas

English 199

22 Apr. 2015

Federal Minimum Wage

What do college students think life would be like if the government decided to increase the Federal Minimum Wage? In my English class at Saint Francis University, we discussed the advantages and disadvantages of increasing the federal minimum wage. Certain individuals had more to say than others; however, everyone understood that any type of change would affect the nation’s economy. One of my classmates, David, and I both disagreed with increasing the minimum wage and raised valid points in our arguments. His comments intrigued me as to why this is an issue and why it would affect the American population.  In addition, I could tell that everyone in the room had his or her own opinion regarding the issue, which is ultimately why I think this issue needs to be addressed.

History

In their book America, authors George Tindall and David Shi analyze the United States economic conditions during the 1930s. During that decade, the United States’ economy went through a period known as The Great Depression, the worst economic period during American history. One out of four Americans was unemployed (Tindall and Emory 1100). As a result, 500,000 Americans were not able to pay their mortgages, which resulted in the loss of their homes or farms (Tindall and Emory 1100). In addition, banks during this period were shutting down and people were unable to recover their money. This economic hardship affected other countries and was classified as a global and international catastrophe (Tindall and Emory 1100).

During President Roosevelt’s term, he was faced with numerous challenges. However, Roosevelt particularly focused on addressing three issues: “reviewing the economy, relieving the widespread human misery, and rescuing the farm sector and its desperate families” (Tindall and Emory 1100). President Roosevelt recruited previous and current advisors to address the nation’s problems. Roosevelt paid close attention to his advisors’ disputes with one another in hopes of finding the best solution. In addition to Roosevelt’s changes, he implemented two acts called the First New Deal and the Second New Deal, which would undergo numerous trials and errors throughout his terms in office (Tindall and Emory 1100).

In the First Deal, the National Industrial Recovery Act (NIRA) was formed, which focused primarily on “economic recovery and public-work projects” (Tindall and Emory 1100).In addition, a $3.3 billion grant was passed, which implemented the creation of “new government buildings, highway construction, flood control projects, and other transportation improvements” (Tindall and Emory 1107). Furthermore, the work was conducted by private contractors in efforts to stimulate the economy and allow individuals to start working again. Soon after, the National Recovery Administration (NRA) was formed to address the following issues: “(1) stabilize the economy by reducing chaotic competition through the implementation of industry-wide codes that set wages and prices and (2) generate more purchasing power for consumers by providing jobs, defining workplace standards, and raising wages” (Tindall and Emory 1107).Additionally, employers during that period were not allowed to schedule their employees more than 40 hours per week. Also, workers earned $13 to $14 per week, depending on the geographical location. Furthermore, children were not allowed to work for businesses if they were under the age of sixteen (Tindall and Emory1107).
        In the Second Deal, Roosevelt decided to focus on providing a more stable and safer economy for citizens who were classified as more vulnerable. The Second Deal focused on the following issues: “new public works program to employ the jobless, banking reform, increased taxes on high incomes and inheritances, and programs to protect workers against the hazards of unemployment, old age, and illness” (Tindall and Emory 1125). From 1935 to 1936, the economy was starting to show signs of improvement. However, in 1937, Roosevelt was highly concerned with government spending and inflation, which both continued to rise. As a result, the Dow Jones stock fell below 40 percent and caused 4 million workers to become unemployed. In 1938, Roosevelt requested that Congress implement a new federal spending program. This program cost $3.3 billion and enabled the economy to show signs of improvement. During that period, the Wagner-Stegall National Housing Act, the Bankhead-Jones Farm Tenant Act, and the Fair Labor Standards Act were passed. The FLSA entitled Americans to be paid 40 cents per hour and limited employers from scheduling their employees over 40 hours per week.  In addition, the FLSA was developed for businesses who were involved in interstate commerce, which is any type of work involving the movement of people or things, including intangible information from state to the next or foreign nations (Tindall and Emory 1136). The FLSA has allowed government officials to regulate trade and implement set wages to employees, which greatly influenced the United States’ economy.