In 1933, Roosevelt enacted the National Industrial Recovery Act (NRA). The act suspended anti-trust laws so industries could enforce fair-trade resulting in less competition and higher wages. In the beginning of the NRA, Roosevelt promulgated a President’s Re-employment Agreement. Employers signed more than 2.3 million agreements, covering 16.3 million employees. Employers agreed to a 35-40 hour workweek, with a minimum wage of $12 to $15 per week. In turn, businesses who signed the agreement displayed a blue eagle over the motto “We do our part.” Therefore, Patriotic Americans would buy only from “Blue Eagle”. As a result, the economy would recover from the “Great Depression”. Unfortunately, May 27, 1935, the Supreme Court disarmed the NRA. The nine justices agreed that the act was unconstitutional delegation of government power to private interests. However, On June 23, 1938, President Franklin D. Roosevelt signed the Fair Labor Standard Act, to become effective on October 24, 1938. As a result, workers would earn a minimum wage of 25 cents per hour, and the maximum workweek of 44 hours. However, this act has changed several times in the past to make adjustments for inflation. Once again, Americans are suffering; the economy is in a recession, President Barack Obama has called for an increase in the minimum wage. Obama stated, “This single step would raise the incomes of millions of working families; it could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets.”
In 1938, America was in a great depression, as a result, Roosevelt’s plan to increase minimum wage helped pull America out of the depression. Raising the minimum wage once again, will help pull Americans out of poverty. Ultimately, giving consumers spending money. In turn giving the boost that our economy and local businesses need in order to grow. A prosperous minimum wage is a key building block of sustainable economic recovery.
Raising the federal minimum wage from its current level of $7.25 per hour to $14.25 per hour would give workers the money needed to survive. Therefore, minimum wage workers that work 40 hours per week, have gross income of $13,920 per year. If the hourly rate would, increase to $14.25 per hour minimum wage workers would see a $13,440 increase in gross income. In other words, the more money workers have, the more they will spend. It is important to realize, that when given more money the struggle for necessities, such as heat, food, shelter, transportation and childcare will decline. As well as, provide them with a better quality of life, with less stress.
Minimum wage workers with families can barely make ends meet. In addition, to a minimum wage, it is likely that they also receive assistance through government-funded programs, such as, food stamps, medical assistance, energy programs, child care...