The issue of government mandated minimum wages did not begin in
America. Great Britain, New Zealand, Australia, and France all had some
sort of minimum wage program before it began in the United States with the
Fair Labor Standards Act (FLSA) in 1938 (Nordlund, 1997, pp. xv, and 1).
While the FLSA was completely necessary legislation in its day, today, the
Federal Minimum Wage, which was a part of the FLSA, is nothing if not
controversial. Many experts believe the minimum wage is no longer
necessary and even adds to unemployment and poverty. The case against the
minimum wage is strong today, for many reasons. One economic expert notes,
These [minimum wage] programs are one element in the fabric of the
economy that affects the relationship between economic sectors and
individual economic participants but whose impacts are large or small,
depending on the character of the legislation, the state of the
economy, the level of enforcement, and a host of other variables
As the writer notes, minimum wage programs are simply one "element in the
fabric" of the nation's economy, but to keep the fabric whole, many believe
the minimum wage programs must be modified greatly, or erased altogether,
because when wages go up, workers lose jobs, and also lose employment
opportunities, as other experts note. "A 1998 study by Burkhauser, Couch,
and Wittenberg reaffirms earlier findings that raising the minimum wage
reduces teenage employment, with a 10 percent increase in the minimum wage
leading to employment losses of 1 to 3 percent" (Editors, 1999). Many
Americans believe increasing the minimum wage will increase the income of
America's lowest paid workers, but this is not always the case. Increasing
the minimum wage often causes employers to cut back positions to avoid
increased costs, so increasing the minimum wage can actually lead to
minimum wage earners l...