Despite the minimum wage remaining relatively low over the last years, there were still around 910,000 thousand workers in the U.S. In comparison, the total number of workers paid the federal minimum wage in 2021 was 181,000. In 1979, nearly four million workers were earning hourly rates at the federal minimum. The number of wage and salary workers in the United States being paid the federal minimum has decreased significantly in the last fifty years, due in part to individual states accommodating the demand for higher hourly pay. consumers struggling to make ends meet in 2022. The rising cost of living has had major implications across the country, with more than one third of U.S. dollars, which is three times greater than what it was in 2000. In the United States, the monthly average rent in 2021 was estimated to be 1,800 U.S. As of 2022, the hourly wage required to afford a two-bedroom apartment was considerably more than the average minimum wage of every U.S. states, making it increasingly difficult for people to sustain themselves, as well as afford housing. 2022 saw a cost-of-living crisis sweep across U.S. Despite monthly wages climbing, they continued to lag behind inflation, leaving many Americans vulnerable to rising costs. surpassed the country’s monthly wage growth, reaching a 40 year high in June 2022 of 9.1 percent. Despite the city’s minimum wage being more than double the federal rate in 2023, full-time workers earning minimum wage would have made around 30,000 U.S. For example, the minimum annual income required for an individual to attain a comfortable life in New York City, New York was 105,742 U.S. Such disparities are particularly present within major U.S. It has been estimated that, if the minimum wage were to have grown with productivity, it would have reached 22.88 U.S. While the wage itself has not fallen, it no longer provides the same support it once did. Many in support of a higher rate have cited its important role in poverty reduction and economic growth, as well as arguing that, as it stands, the hourly rate is insufficient for individuals to support themselves. The issue of minimum wage has grown controversial in the U.S., with the subject of increasing federal minimum wage sparking ongoing political debates. The intended purpose of minimum wage was to provide a basic standard of living for workers, as well as to prevent the exploitation of low-wage workers. In order to prevent continuous exploitation, Roosevelt created a national minimum wage. Roosevelt passed this legislation as a part of the New Deal, which was created as a response to the Great Depression. The Fair Labor Standard Act of 1938 put forth national minimum wages and a maximum number of hours workers can be required to work. During this period, there was substantial growth in mass production, and as a result of the many Americans who left farms and small towns to work in factories, workers created unions in order to lobby for better working conditions. The federal minimum wage in the United States was first introduced at the end of the 19th century as a result of industrialization, as more factories had been created in order to produce more goods. Exceptions to the minimum wage are sometimes made to small businesses, allowing states to have two different minimum wage rates. Georgia and Wyoming had the lowest minimum wages that year, with both state minimum wages at 5.15 U.S. 13 states remain situated at the prevailing federal minimum. As of 2023, the District of Columbia had the highest minimum wage in the country, at 16.50 U.S. Although the federal rate has remained unchanged since 2010, many states have implemented their own minimum wage laws. To offer a global perspective, the United States minimum wage ranks seventeenth when compared to the national minimum wage of 38 OECD countries. dollars per hour which, when adjusted for inflation, is approximately 40 percent lower than what it was in 1970. In the United States, the federal minimum wage is 7.25 U.S. Minimum wage is the lowest hourly rate that employers are legally required to pay their employees.

Minimum wage small vs big business