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Minimum wage was created by The Department of Labor's Wage and Hour Division.

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As a group we believe that minimum wage should not be raised, the federal minimum wage is $7.25 an hour, but under the Raise the Wage Act of 2023, the federal minimum wage would be raised to $17 an hour.

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https://www.statista.com/statistics/238997/minimum-wage-by-us-state/#:~:text=U.S.%20minimum%20wage%202023%2C%20by%20state&text=The%20federally%20mandated%20minimum%20wage,16.50%20U.S.%20dollars%20per%20hour

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The federally mandated minimum wage in the United States is 7.25 U.S. dollars per hour, although the minimum wage varies from state to state. As of January 1, 2023, the District of Columbia had the highest minimum wage in the U.S., at 16.50 U.S. dollars per hour. This was followed by Washington, which had 15.74 U.S. dollars per hour as the state minimum wage.
Minimum wage workers
Minimum wage jobs are traditionally seen as "starter jobs" in the U.S., or first jobs for teenagers and young adults, and the number of people working minimum wage jobs has decreased from almost four million in 1979 to about 247,000 in 2020. However, the number of workers earning less than minimum wage in 2020 was significantly higher, at about 865,000.
Minimum wage jobs
Minimum wage jobs are primarily found in food preparation and serving occupations, as well as sales jobs (primarily in retail). Because the minimum wage has not kept up with inflation, nor has it been increased since 2009, it is becoming harder and harder live off of a minimum wage wage job, and for those workers to afford essential things like rent.

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Minimum wage by state U.S. 2023 | Statista

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The federally mandated minimum wage in the United States is 7.25 U.S.

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https://www.epi.org/blog/a-history-of-the-federal-minimum-wage-85-years-later-the-minimum-wage-is-far-from-equitable/#:~:text=Since%20its%20inception%2C%20the%20FLSA,wage%20to%20%2417%20per%20hour

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The minimum wage is a New Deal era policy established initially through the Fair Labor Standards Act of 1938 (FLSA). The original bill set a wage floor, instituted a 44-hour work week, and protected children from prematurely entering the workforce. Since its inception, the FLSA has been amended multiple times, with added exemptions and expansions specifying which groups of workers are covered under different aspects of the law. The latest proposed changes in Congress-the Raise the Wage Act of 2023-would increase the federal minimum wage to $17 per hour.

In light of this new legislation, we take a look back at the 85-year history of the minimum wage, how it differs in states and localities, and how minimum wage laws continue to have implications for racial, gender, and economic justice today.

History of the federal minimum wage and the Fair Labor Standards Act of 1938

The concept behind the FLSA began in the 1930s as a response to the Great Depression, a time when about 25% of workers were unemployed, people lost their life savings due to bank failures, and many struggled to secure housing and food. In 1933, President Franklin Delano Roosevelt responded with the National Industrial Recovery Act (NIRA) and establishing the National Re covery Administration (NRA) . Through these policies, the Roosevelt administration sought to revive the economy and help the nation recover by instituting industrywide "fair competition" codes intended to set wages and prices, create jobs, and permit collective bargaining. From the NRA, over two million businesses sought to earn pro-worker "Blue Eagle" branding by signing agreements for policies such as a weekly $12-$15 minimum wage, a commitment not to hire workers younger than 16 years old, and a work week no longer than 40 hours.

However, the Supreme Court invalidated the NIRA by ruling that the executive branch did not have the power to institute the codes. The court's opposition warranted another vehicle for worker protections; therefore, the Roosevelt administration sought to craft legislation that would protect workers, garner enough support to pass Congress, and explicitly align with the Constitution to avoid legal challenges.

Efforts to pass this legislation increased as public outcry over the Supreme Court decision grew. When Roosevelt was campaigning for reelection in Massachusetts, a young girl working at a factory attempted to hand him a note, but a policeman blocked her. Roosevelt instructed his aid to get the note which pleaded for help stating, " We have been working in a sewing factory...and up to a few months ago we were getting our minimum pay of $11 a week...Today the 200 of us girls have been cut down to $4 and $5 and $6 a week." Responding to the girl's plea, Roosevelt was resolute to create a minimum wage law.

The process for the final bill was extensive-beginning with Roosevelt's efforts to secure workers' rights advocate Frances Perkins as Secretary of Labor, who shared his goals for labor standards. Perkins became the first woman to hold a cabinet position and proposed a law to establish a minimum wage, set a cap on hours worked per week, and set restrictions on child labor. One of the bills became the FLSA and after three sessions of Congress, the legislation finally passed. Roosevelt signed the FLSA into law on June 25, 1938, and it became effective on October 24, 1938.

Supporters and opponents of the minimum wage

Supporters of the bill emphasized the necessity to create better conditions for the one-third of Americans who were financially struggling, noting the law would improve labor standards for the labor force. Proponents said the bill would end " unnecessarily long hours which wear out part of the working population while they keep the rest from having work to do." They noted that a minimum wage would support the entire wage infrastructure by creating a floor that workers could leverage to achieve higher wages through collective bargaining.

Some labor organizers of the time worried that employers would not pay above the minimum wage set by the law, so they advocated for the bill to only cover low-paid workers that were not part of unions. Consequently, the initial bill excluded work protected by collective bargaining. By the 1950s, unions began to support and advocate for expanding the minimum wage to also cover union workers.

Opponents of the bill insisted that higher wages would cause labor cuts, but the administration fought back harder. In a fireside chat discussing the bill, President Roosevelt said, " Do not let any calamity-howling executive with an income of $1,000 a day...tell you...that a wage of $11 a week is going to have a disastrous effect on all American industry." Incorrect statements from businesses opposing the minimum wage continue to the present day with assertions that minimum wage increases would cause businesses to close or reduce jobs. Studies demonstrate how these predictions did not come true.

How the minimum wage has changed over time

The Fair Labor Standards Act has been amended several times since the original 1938 bill. The most recent change became effective July 24, 2009, increasing the federal minimum wage to $7.25. Despite numerous efforts, there have been no federal minimum wage increases since then.

Table 1 highlights federal minimum wage increases over time in nominal dollars compared with what that wage would be in inflation-adjusted 2023 dollars. Congress raised the minimum wage fairly consistently for decades, but that began to change in the 1980s, with increases becoming fewer and farther between.

Without any mechanisms in place to automatically adjust it for rising prices, the real value of the federal minimum wage has gradually declined, reaching a 66-year low in 2023, where it is now worth 42% less than its highest point in 1968. Moreover, the federal minimum wage is worth 30% less today than when it was last raised 14 years ago. This significant loss in purchasing power means that the federal minimum wage today is nowhere close to a living wage.

Exemptions

The FLSA provided several exemptions for specific categories of workers, including executives, administrators, professionals, and certain outside sales employees. However, another major group of workers exempted under the FLSA was agricultural, domestic, and other service-sector employees.

The implications of these exemptions were significant for workers earning low wages, particularly those in marginalized communities. Excluded workers were left vulnerable to exploitation and unable to access basic labor rights under the law, such as a fair minimum wage and overtime pay. The exemptions deepened economic disparities and perpetuated a two-tiered system where some workers were entitled to protections and benefits, while others were left unprotected, exacerbating a cycle of poverty and wage inequality. It was not until later amendments to the FLSA and the Civil Rights Act of 1964 that many of these exclusions were addressed. However, many of these workers- including in the agricultural sector -continue to face exploitative working conditions, long hours, and meager pay.

Racial impact of the minimum wage

When the FLSA was first introduced, many of the industries that were exempted from a minimum wage were also industries that Black workers were heavily represented in. Some have argued that President Franklin D. Roosevelt had excluded industries that were predominately held by Black workers to gain favor from Southern lawmakers. These exemptions kept Black workers vulnerable to wage theft, excessively long hours without overtime, and an overall lack of workplace protections.

As amendments were made to the FLSA over the subsequent decades, more of the labor force was covered. The 1966 amendments expanded coverage and introduced a $1 wage floor to several new sectors, including agriculture, schools, nursing homes, and restaurants-sectors where Black workers were disproportionately employed. As a result, the expansion of the minimum wage had an especially positive impact on Black workers, nearly double that of white workers.

However, the 1966 amendments also allowed employers to credit a portion of employees tips toward workers' minimum wages, permitting employers to reduce wage obligations to tipped staff. That means that tipped workers, predominately working in restaurants and other service sectors, saw both an expansion of coverage and a reduction of pay from employers simultaneously. Sadly, many of these workers were also women and workers of color.

Additionally, the failure to adjust the minimum wage adequately to keep pace with inflation and economic growth has undermined its effectiveness in addressing racial income inequality. Today, Black workers are paid 10%-15% less than white workers with the same characteristics. Similarly, maintaining a lower minimum wage for tipped workers continues to preserve racial inequities. Without eliminating the lower subminimum wage for tipped workers, workers of color will struggle to sustain economic security.

State minimum wage levels

States have the authority to set minimum wages higher than the federal minimum wage to account for higher regional wage levels or costs of living. This has led to significant variation in minimum wages across the country, as shown in EPI's interactive minimum wage tracker.

Thirty states and Washington, D.C. currently set their minimum wages higher than the federal level. And this year alone, 27 states and 42 cities and counties will increase their minimum wages. 1 Across the nation, 19 states and DC have minimum wages that increase with inflation, meaning that their minimums will likely increase each year. This year's increases ranged from $0.23 to $1.50 an hour.

Meanwhile, 20 other states set their minimums at or below the federal level. Employers in states with lower minimums than the federal level can only pay their workers less if they are not covered by the FLSA. To be subject to the FLSA, companies must gross at least $500,000 in annual sales and engage in interstate commerce. Of these 20 states, seven states have either no minimum-wage law or a minimum wage below the federal minimum wage. Six of these states are in the South (Alabama, Georgia, Louisiana, Mississippi, South Carolina, and Tennessee). Accounting for only 12% of U.S. states, these six Southern states represent 23% of the Black workforce.

New legislation in Congress would raise the minimum wage to $17 an hour

The most recent proposal to increase the federal minimum wage is the Raise the Wage Act of 2023, which would gradually raise the federal minimum wage to $17 an hour by 2028. Additionally, the bill seeks to progressively raise and eventually eliminate subminimum wages for tipped workers, workers with disabilities, and youth workers, thereby ensuring that all employees covered by the Fair Labor Standards Act receive equal wages. EPI's analysis of the Raise the Wage Act of 2023 estimates over 27.8 million workers would be impacted, with the average affected worker who works year-round receiving an extra $3,100 per year.

Raising the minimum wage is vital to safeguard workers who have historically been marginalized and left behind. For Black workers specifically, a higher minimum wage would be a critical step in raising living standards and promoting economic justice. For generations, Black workers have been disproportionately represented in low-wage jobs, making them particularly vulnerable to economic hardships. A higher federal minimum wage would provide much-needed relief to many Black workers, with nearly 30% of Black workers benefiting if the federal minimum wage is raised to $17 by 2028. In short, the Raise the Wage Act of 2023 would provide a long overdue boost in wages and administer a stronger, more equitable wage floor for states to follow.
Note
1. On January 1, 2023, 23 states increased their state minimum wage including New York which increased their minimum wage on December 31, 2022. This summer, three states (Connecticut, Nevada, and Oregon) and Washington, D.C. along with 15 cities and counties increased their state minimum wages. Florida will increase their minimum wage on September 1, 2023.

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A history of the federal minimum wage: 85 years later, the minimum wage is far from equitable

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The minimum wage is a New Deal era policy established initially through the Fair Labor Standards Act of 1938 (FLSA). The original bill set a wage floor, instituted a 44-hour work week, and protected children from prematurely entering the workforce. Since its inception, the FLSA has been amended multiple times, with added exemptions and expansions...

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We need minimum wage to support the economy and protect workers rights.

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Overview

Minimum wage laws establish a base level of pay that employers are required to pay certain covered employees. The current federal minimum wage is $7.25 per hour. In addition to a federal minimum wage, some states also have their own minimum wages, codified either in a state statute or in the state's constitution. States are broken up into 4 classifications for minimum wage:

1. states with minimum wages higher than the federal government's

2. states with statutes which explicitly match the federal minimum wage

3. states without any sort of minimum wage statute (which results in that state's minimum wage automatically matching the minimum wage of the federal government)

4. states which explicitly set out a minimum wage which is lower than the federal government's.

this lowered minimum wage will only apply to certain jobs within the state, while the remaining majority of jobs would match the federal minimum wage

When an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Fair Labor Standards Act

Overview

The national minimum wage was created by Congress under the Fair Labor Standards Act (FLSA) in 1938. Congress enacted this legislation under its authority in Article I, Section 8 of the U.S. Constitution: "The Congress shall have power to . . . regulate commerce . . . among the several states." FLSA was a comprehensive federal scheme which provided for minimum wages, overtime pay, record keeping requirements, and child labor regulations. The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees. Others have argued that the primary purpose was to aid the lowest paid of the nation's working population, those who lacked sufficient bargaining power to secure for themselves a minimum subsistence wage. FLSA specifically provided for a minimum wage for full time and part time, public and private sector workers. Specifically, workers who are "engaged in" or "in the production of goods for" interstate (commerce between the states) and foreign commerce.

Employees

FLSA's requirements only apply to "employees." To determine whether an individual is an employee under the FLSA, courts usually focus on the economic reality of the relationship. The important issue is whether the individual is "economically dependent" on the business to which the employee renders service. Courts also look at a variety of factors that are similar to those used in the common law tort context to differentiate employees from independent contractors. For example, courts will look at the degree of control the alleged employer has over the way in which the work is performed - typically an employer will have more of a degree of control over an employee, compared to the degree of control that an employer would have over an independent contractor.

Exemptions

Congress exempted certain employees from the minimum wage provisions, for example: executives, administrators, professionals, and outside salespersons. It is likely that Congress believed that these employees had a higher level of bargaining power and were not as vulnerable to overreaching by their employers. Other exceptions apply under specific circumstances to workers with disabilities or full-time students.

Enforcement

FLSA authorizes the Secretary of Labor to use several different methods to evaluate an employer's conduct and enforce the minimum wage requirement. Congress created the Wage and Hour Division in the Labor Department to allow the Wage-Hour Administrator and the Secretary to investigate and detect violations. The Wage and Hour Division can compel the attendance of witnesses at hearings. It may also require an employer to make records available to the Wage-Hour Administrator. Additionally, the Secretary can sue to restrain violations and to some extent recover unpaid benefits on behalf of employees.

Damages and Remedies

29 U.S. Code § 216(b) and 29 U.S. Code § 216(c) governs civil damages and civil remedies. Damages for employees for violations can be significant. The FLSA affords a private right of action for employees to recover unpaid minimum wages. In fact, an employee may bring a claim on the employee's own behalf and on behalf of any "similarly situated" employees. The FLSA has both civil and criminal components. FLSA provides for criminal penalties and fines. Furthermore, an individual can be held personally liable for civil damages, if she effectively controls an employer and/or serve as an alter ego of it. The civil remedies can include all unpaid compensation, liquidated damages, reinstatement, and attorneys' fees.

Further Reading

For more on minimum wage, see this University of Pennsylvania Law Review article, this Denver Law Review article, and this Harvard Law Review article.

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Minimum wage laws establish a base level of pay that employers are required to pay certain covered employees. The current federal minimum wage is $7.25 per hour. In addition to a federal minimum wage, some states also have their own minimum wages, codified either in a state statute or in the state's constitution.

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Minimum wage is the lowest wage permitted by law or by a special agreement.

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Minimum wage is present and active in every state in the U.S.

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The 2012 Wilson review noted: A 2004 “review of more than 20 minimum wage studies looking at price effects found that a 10 percent increase in the U.S. minimum wage raises food prices by up to 4 percent.”

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Minimum wage was created in 1938.

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To stop minimum wage from rising, we as a country need to reach out to local and state representatives who have the capability of making a difference.

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"At one extreme, an increase in the minimum wage could put a small group of workers out of work indefinitely so that they never benefited from higher wages. At the other extreme, a large group of workers might shuffle regularly in and out of employment, experiencing short spells of joblessness but receiving higher wages during the weeks they were employed."

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How Increasing the Federal Minimum Wage Could Affect Employment and Family Income | Congressional Budget Office

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This interactive tool, updated in August 2022, allows users to explore how various policies to increase the federal minimum wage would affect earnings, employment, family income, and poverty.

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It was created following the initiation of President Roosevelt by the U.S. congress. It was put into affect with the Fair Labor Standards Act.

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Minimum wages have been defined as " the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract ".

This definition refers to the binding nature of minimum wages, regardless of the method of fixing them. Minimum wages can be set by statute, decision of a competent authority, a wage board, a wage council, or by industrial or labour courts or tribunals. Minimum wages can also be set by giving the force of law to provisions of collective agreements.

The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection. Minimum wages can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women, by promoting the right to equal remuneration for work of equal value.

Minimum wage systems should not be seen or used in isolation, but should be designed in a way to supplement and reinforce other social and employment policies. Several types of measures can be used to tackle income and labour market inequality, including pro-employment policies, social transfers, and creating an enabling environment for sustainable enterprises.

The purpose of a minimum wage, which sets a floor, should also be distinguished from collective bargaining, which can be used to set wages above an existing floor. Figure 1 shows a hypothetical wage distribution with a "minimum wage zone" and a "collective bargaining zone" which can be used to establish minimum standards and to set wages above an existing floor.

Figure 2 illustrates that the effectiveness of minimum wages depends on many factors, including the extent to which they afford protection to all workers in an employment relationship, including women, and youth and migrant workers, regardless of their contractual arrangements, as well as all industries and occupations in the economy (coverage); whether they are set and adjusted at an adequate level that covers the needs of workers and their families, while taking into account economic factors (level); and whether employers comply with minimum wage regulations (compliance).

Figure 1. The distribution of wages (hypothetical wage distribution of a population of 56 wage-earners)

Figure 2. Main dimensions of effective minimum wages
1 ILO: General Survey concerning the Minimum Wage Fixing Convention, 1970 (No. 131), and the Minimum Wage Fixing Recommendation, 1970 (No. 135), Committee of Experts on the Application of Conventions and Recommendations, 2014.
2 ILO: Advances and Challenges in Labour Protection. Conditions of Work and Equality Department Policy Brief.

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Minimum wages have been defined as " the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract ". This definition refers to the binding nature of minimum wages, regardless of the method of fixing them.

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If the minimum wage is increased inflation will also increase and that means that the price of little things like gas, and groceries will go up.  Imagine not even making enough money to afford to drive your car or buy food for your family.

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Another projected problem resulting from an increased minimum wage is that of potential job losses. By 2027, the CBO (Congressional Budget Office)  estimated that up to 1.6 million jobs would be lost. By 2032, this would increase to 1.9 million lost jobs

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The minimum wage is the lowest hourly rate that an employer can pay an employee according to law. Many states have minimum wages in place. But the federal minimum wage hasn't increased since 2009, despite many attempts to do so. The discussion around increasing the minimum wage brings both pros and cons.

As of January 2024, Washington had the highest state minimum wage rate at $16.28 per hour. Washington, D.C. has the highest rate overall at $17.00 an hour.

There's also a federal minimum wage at $7.25 an hour. Employers must pay minimum wage employees whichever rate is higher, so if the federal rate is higher than the state rate, an employee gets the federal minimum wage. The same is true if the state rate is higher.

Minimum wage laws have been in effect in the United States since 1938 when the first federal rate was set at $0.25 per hour.Amendments were made to the Fair Labor Standards Act (FLSA) since then, increasing the base rate of pay for many hourly workers according to inflation.

Key Takeaways

Understanding the Minimum Wage

As noted above, the term minimum wage refers to the legally established lowest amount that employers are required to pay their employees for their work. It serves as a baseline wage that is intended to ensure that workers receive fair compensation for their labor, covering basic living expenses and preventing the exploitation of low-wage workers.

The primary purpose of minimum wage is to provide workers with a level of income that allows them to meet their essential needs. It acts as a safeguard against extremely low wages and helps reduce poverty and income inequality within a society. By setting a minimum wage, governments aim to promote decent working conditions and provide a degree of economic security for workers.

National and sub-national government entities analyze several factors when considering whether to raise or maintain the current level of minimum wage. As the general increase in prices over time, inflation can erode purchasing power. Economic conditions such as the state of the economy may call for adjusted labor market dynamics. Social equity considerations may call for more livable wages. Regardless of the consideration, there are various reasons to support and detract from raising the minimum wage.

Pros of Raising the Minimum Wage

The primary argument advanced in favor of raising the minimum wage is that higher earnings would improve the overall standard of living for minimum wage workers by providing them with a more appropriate income level to handle the cost of living increases.

A 2022 study by the Congressional Budget Office analyzed the macroeconomic impact of the standard minimum wage reaching $15 per hour in 2027. The data reported that 10.9 million workers would be directly affected, while an additional 9.2 million workers would potentially be affected. The total directly or potentially affected workers by 2032 would surpass 23 million.

While some proponents of raising the minimum wage estimate that a much larger number of individuals and families will move out of poverty if they earn more money, a related potential benefit is a projected reduction in the need for federal and state government expenditures on financial aid for poor and low-income individuals.

Meanwhile, an intangible benefit that could translate into tangible benefits for both companies and employees is improved employee morale resulting from higher wages. Business owners frequently note the challenge of providing sufficient encouragement to spur workers to put maximum effort into their job duties, and that this is particularly problematic with low-wage workers who feel that their job efforts aren't keeping them out of poverty.

Increasing employee morale could easily translate into more tangible benefits, such as increased employee retention and reduced hiring and training costs. Employees who are more inclined to stay with a company longer could benefit from greater advancement and an overall reduction in job-related relocation expenses.

A boost to economic growth is another potential advantage of increasing the minimum wage, as consumer spending typically increases along with wages. A higher minimum wage would put more discretionary dollars in the pockets of millions of workers; money that would then flow to retailers and other businesses.

Cons of Raising Minimum Wage

Among the disadvantages of increasing the minimum wage is the probable consequence of businesses increasing prices, thus fueling inflation.

Opponents argue that raising the minimum wage would likely result in wages and salaries increasing across the board, thereby substantially increasing operating expenses for companies that would then increase the prices of products and services to cover their increased labor costs.

Increased prices mean a general increase in the cost of living that could essentially negate any advantage gained by workers having more dollars in their pockets.

Another projected problem resulting from an increased minimum wage is that of potential job losses. Many economists and business executives who point out that labor is a major cost of doing business argue that businesses will be forced to cut jobs to maintain profitability.

The same 2022 study mentioned above by the Congressional Budget Office also analyzed how higher wages may result in the elimination of roles. By 2027, the CBO estimated that up to 1.6 million jobs would be lost. By 2032, this would increase to 1.9 million lost jobs.

One potentially negative impact that is less readily apparent is the possibility that a higher minimum wage would result in increased labor market competition for minimum wage jobs.

The net outcome of an increased minimum wage might be a large number of overqualified workers taking minimum wage positions that would ordinarily go to young or otherwise inexperienced workers. This could impede younger, less experienced entrants to the job market from obtaining work and gaining experience to move their careers forward.

How Does Minimum Wage Affect the Economy?

The impact of minimum wage on the economy is a complex issue. Supporters argue that increasing minimum wage can stimulate consumer spending and boost the overall economy by putting more money in the hands of low-wage workers. Critics, on the other hand, warn that higher labor costs might lead to job cuts, automation, and increased prices for goods and services.

Is Minimum Wage the Same for All Workers?

No, minimum wage laws often take into account different categories of workers. For example, there might be different minimum wage rates for adult workers, minors, or workers in specific industries. Tipped employees, like servers in restaurants, may also have a lower minimum wage due to the expectation of receiving tips.

Does Inflation Impact Minimum Wage?

Yes, inflation can erode the purchasing power of minimum wage over time. To address this, some governments index minimum wage to inflation rates. This means that the minimum wage is adjusted periodically to ensure that its real value remains relatively constant.

How Does Minimum Wage Affect Small Businesses?

The impact of minimum wage increases on small businesses can vary. Some small businesses might struggle to absorb the additional labor costs, potentially leading to layoffs or reduced hours. Others might adapt by increasing prices or finding operational efficiencies to mitigate the impact.

Do All Countries Have Minimum Wage Laws?

While minimum wage laws are prevalent in many countries, not all nations have implemented such legislation. The presence and level of minimum wage often depend on a country's economic structure, labor policies, and social priorities.

The Bottom Line

Raising the federal minimum wage to $15 an hour is a policy goal for many lawmakers. Increasing the minimum wage is expected to lift individuals out of poverty and improve work ethic, however, it also comes with many possible negative implications, such as inflation and a loss of jobs.

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What Are the Pros and Cons of Raising the Minimum Wage?

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With the debate on wages continuing in Congress and in the public arena, here are some of the major pros and cons of raising the minimum wage.