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Half of the lowest-paid workers in the country will get a raise in 2021. Exactly 25 of the 50 US states, plus Washington, DC, voted to raise their minimum wages in the last election. Many states have already instituted a minimum wage above the federal minimum, but 20 of them still use the national standard of $ 7.25 an hour as the lowest wage allowed by law.
The minimum wage emerged in 1938 as part of the Fair Labor Standards Act, which revolutionized the workplace, spawned the middle class, and remains the foundation of American labor law. The minimum wage has always been controversial and political – who should get it, who shouldn’t, how much it should be – and, in practice, the way it’s administered doesn’t make much sense: it’s a rate fixed that doesn’t account for regional differences in the cost of living, even though $ 7.25 goes much further in Buffalo, New York, for example, than a few hours south of New York City. It also doesn’t adjust for inflation over time, so it can only rise through protracted political negotiations that leave low-paid workers little relief. A dozen presidents have raised the minimum wage 22 times.
Related: Why pennies still exist and other anecdotes about money
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