National History of Minimum Wage

(1)

Ever since the American industrial revolution, low wage earners have had to contend with the issue of minimum wage. Following suit with the English Industrial revolution, the mid to late 1800’s in American witnessed a rapid expansion of technology and urbanization. Technologies such as the steam engine, steel production and mechanized farming were spreading throughout the country, and vast industrial centers were able to flourish. This was in part due to the vast raw resources the United States possessed and also in part the constant supply of new immigrant labor. These new immigrants were largely from Europe, hoping to find a fresh start and new opportunities in America. The constant influx of raw materials and labor allowed for the rapid development of commercial manufacturing. No sooner had the new industries developed, than the captains of industry were exploiting workers.

The so called “robber barons” of the late 19^th and early 20^th centuries were known for their brilliance in accumulating wealth, but also for their lack of compassion toward their employees. The laissez-fair economics of the day allowed these powerful businessmen such as Andrew Carnegie and John D. Rockefeller to give minimal compensation toward their workers. There were no benefits, and barely enough money to support a family if only the man worked. This immigrant, working-class families were often forced to live in tenement conditions. Tenements were cheaply built housing structures that would often become extremely overcrowded. This was largely due to the fact that people were moving into the cities faster that the cities could develop effective infrastructure. The worker’s wage was usually only enough to barely keep a family in this sort of housing. (2) Deteriorating conditions for the immigrant workers eventually led to the Homestead and Pullman Strikes. These major strikes in the steel and railroad industry characterized the attempts of workers to improve their conditions. Most were put down with a combination of company and government support. It would take the Great Depression for legislation that would permanently secure workers rights.

The Depression was a very difficult time in American history, but it led to the FLSA or Federal Labor Standards Act which would begin a federal minimum wage. This among other laws curtailing the power of trusts and giving workers the right to unionize gave workers the opportunity for improved conditions. (3) The minimum wage however, would rarely increase and is always trying to keep up with the current “real” livable wage. The different states have deal with this problem differently, but some of the poorer states in the country such as Louisiana and Mississippi have not made state legislation surpassing or even meeting the federal minimum wage.

http://www.tenement.org/ (2)

http://oregonstate.edu/instruct/anth484/minwage.html (1)

http://www.dol.gov/esa/whd/flsa/ (3)