Liberal & Conservative Views of Minimum Wage

Minimum Wage Theory from the Perspective of Modern Liberalism

The minimum wage was first put into effect in the United States in 1938 during Franklin Roosevelt's administration and during the Great Depression. The 1930s were a period marked by liberalism (collectively called the New Deal), and a commitment by government to help raise individuals and families out of poverty. At the time the minimum wage was introduced, it set the price (wage) at 25 cents per hour for most workers. It should be noted, however, that the beginning of the twentieth century saw not only the imposition of a minimum wage, but also the elimination of child labor, imposition of the 40-hour work week, and numerous safety regulations put into force. At that time, business was generally perce

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onsumers. There may be hidden costs, such as the proximity of the vendor to the customer, or the time between the time an order is placed and the time it is delivered, but the price in dollars can be used to compare manufactured goods from one vendor to those from another. The costs associated with the labor market are not so easily discernible. There is, for example, a wage that is paid to workers which can be expressed in dollars. That wage is, however, only one component of labor costs. In addition, there are insurance costs and medical benefits, other fringe benefits, additional overhead (larger office space, more furniture, extra equipment), and payroll taxes which are rarely revealed to individual workers. Also, each worker has a specific skill set which is likely to be different from any other worker, even in the same job category. Some skills, such as typing speed or the ability to operate certain equipment, can be quantified and labor suppliers and labor consumers can base their decisions on those job classifications. Other skill sets, such as native intelligence or ability to get along with others, cannot be quantified (Ginzberg, 1976). From the supplier's (worker's) standpoint, there are other considerations be
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Approximate Word count = 3183
Approximate Pages = 13 (250 words per page)

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