Anyone know how the US minimum wage was first calculated?

[intheflow]

I remember hearing one time that it was calculated based on food and clothing costs, but didn't take housing cost into consideration. Is that true?

[evlbstrd]

1. Here ya go.

http://www.dol.gov/esa/whd/flsa/

[Godai Kyoko]

2. nothing for the OP about the history

I don't believe they did any calculations about what people needed. They just put a floor at about 50% of the average wage. Usual wages were about 70 cents an hour or so in 1935 when the Fed minimum was brought in, so they established the minimum at half that, or 35 cents.

Even today the people pushing for higher minimums ask for a percentage of the average. I think they are pushing for 65% of the average wage. That would be just over $7.

[intheflow]

5. Thanks, but

that didn't give me any history or the minimum wage at all. I had already trolled the DOL sites looking for how the wage was originally calculated before I posted this question, but didn't find anything.

But I appreciate the attempt at help. Welcome to DU! :hi:

[happyslug]

3. The "Standard of Need" was calculated based on such costs

IT was first made permanent in 1967 and has been raised based on inflation ever since. The Standard of Need is used to determine who gets welfare benefits in each state. The Standard of Need" is basically the amount of Income you need to live decently.

History of the Aid to Dependent Families (AFDC) program and the "Standard of Need":
http://aspe.hhs.gov/hsp/AFDC/baseline/1history.pdf#search='Standard%20of%20Need%20First%20developed'

As to Minimum wage that was set up during the Great Depression:
http://www.dol.gov/esa/minwage/chart.htm
http://oregonstate.edu/instruct/anth484/minwage.html

I can NOT find any reason for 25 cents per hour for the first Minimum wage law except it was a low wage for the time period (The old phase "A Dollar a day" was the going workman's wages in the early 20th Century).

More on the "Standard of Need":
http://www.njcathconf.com/NewsReleases/Social%20Issues/March6_2002%20StandardOfNeed.htm
http://aspe.hhs.gov/search/hsp/AFDC/baseline/5benefits.pdf#search='Pennsylvania%20Standard%20of%20Need'
http://aspe.hhs.gov/poverty/05poverty.shtml

[intheflow]

6. Thank you. This is helpful but

I don't see any direct correlation made between aids levels set for AFDC and the calculation used to determine the minimum wage. But the concept of the "Standard of Need" demonstrates how out of touch with economic reality lawmkers really are.

Still, this is fascinating and gives me some ideas of where else I can look. :hi:

[happyslug]

7. To my knowledge there has NEVER been a connection between the two.

The Right Wing keep on saying that Minimum wage laws are bad because it low income people from working in that such low income people can not offer their labor at rates less than the minimum wage. This is Right wing dogma and every time it is proposed to raise the Minimum wage the Right wing bring out their "Studies" that show how minimum wage hurts minorities by keeping wages to high. I do NOT subscribe to this dogma (especially as to low income people where "complete and total" knowledge of one's earning capacity is generally unknown). There is some truth to this fact for higher income people (i.e. making way more than Minimum wage) but only where people have knowledge of what they can earn (i.e. where information exist and is findable by workers of what their work is worth on the market).

Anyway, given the right wing Dogma as to Minimum wage, to my knowledge it has NEVER been correlated with what a person needs to survive. IT is floor Labor has been pushing for since the Great Depression and that Corporate America has fought tooth and nail every time. The last time Minimum wage was increased the Democrats so embarrassed the GOP over the lack of an increase (and it promised to be a factor in several races) that the GOP leadership permitted an increase to pass the house and senate (To be signed by President Clinton). Labor is trying to do the same again this year. I do not see it succeeding till early 2006 (Again do to the GOP fear of losing seats over the issue in the 2006 congressional elections).

[intheflow]

8. I have a background in labor history.

Took an undergrad course, and did an independent study in labor issues in my masters program, and organized ministers to preach on labor issues in conjunction with AFL-CIO. The reason I asked about the connection between minimum wage and housing costs is that I think I remember having heard that, but have lost the class notes. Was just hoping someone else would have heard of the connection.

[evlbstrd]

4. Hell, ya can't have everybody well off!