The minimum wage is important because it raises wages and reduces poverty. Proponents assert that it is needed to protect workers from exploitative employment practices. Opponents of the minimum wage claim that it is an unnecessary government intrusion into the relationship between employer and employee.Continue Reading
The precursor to the minimum wage was passed by King James I of England in 1604. The Act Fixing a Minimum Wage established a minimum wage for textile workers. Prior to passage of the Act, there was an established maximum wage but no formal minimum.
The federal minimum wage was established by the Fair Labor Standards Act of 1938. The wage was set artificially high to render low-wage factory jobs in the South obsolete. Subsequent amendments to the Act increased its scope to cover retail and other sectors of the economy and to mitigate unintended consequence to Puerto Rico, the U.S. Virgin Islands and other territories.
As of 2014, the federal minimum wage is $7.25 per hour, but there is pressure on Congress to increase it to more than $10 per hour. Advocates for increasing the minimum wage assert that an increase is necessary to improve the wages of a large number of working women and because, after adjusting for inflation, the minimum wage for tipped employees is at its lowest level since 1966.Learn more about Economics
A third-world country is an underdeveloped nation with widespread poverty. Most third-world countries are located in Asia, Africa or Latin America. However, the meaning of the term "Third World" has changed since its origin.Full Answer >
Third world countries are underdeveloped nations where poverty is rampant. Third world countries also referred to nations that never sided with the policies of the United States or the former Soviet Union during the Cold War.Full Answer >
The wealth or poverty of nations depends primarily on intrinsic factors: geography, climate and availability or lack of resources. Having a geographic location proximate to large, thriving population centers plays a large role in boosting national economy. Certain natural resources, like rich, fertile soil and abundance of water, support farming and agriculture, which is a lucrative income for many countries.Full Answer >
For 2015, the federal poverty guideline for a household of four people is $24,250 in the contiguous 48 states and the District of Columbia. A household of eight has a poverty guideline of $40,890.Full Answer >