After 75 Years, the Working Poor Still Struggle for a Fair Wage

NYT

At the height of the Great Depression, industry convinced President Franklin Roosevelt and Congress to enact a law allowing companies to collude to drive up prices. To balance out this giveaway to big business, the law gave workers something that they had long been fighting for: the first federal minimum wage.

This week marks the 75th anniversary of the National Industrial Recovery Act — which Roosevelt signed June 16, 1933, at the end of his famous first 100 days — and of the federal minimum wage. It was a grudging, almost accidental win, and the road since then has been rocky. Advocates for low-income workers have had a hard time keeping the minimum wage at a reasonable level and passing other laws necessary to fulfill the original goal: ensuring that people who work hard can achieve a reasonable standard of living.

When progressives set out to establish a national minimum wage, they faced stiff opposition. Industry insisted that government should not interfere with its relations with its employees. Organized labor was also opposed. (“If you give them something for nothing,” one labor leader objected, “they won’t join the union.”) The pro-business Supreme Court presented the biggest obstacle, ruling that minimum wages were unconstitutional.

The Depression provided an opening. Progressives injected minimum-wage and maximum-hours provisions into the NIRA. These provisions were technically voluntary, but if companies wanted the government to approve the minimum prices and production limits they desperately wanted, they had to agree to minimum wages. Most industries adopted a minimum hourly wage of at least 40 cents.

The Supreme Court declared the NIRA unconstitutional, but the idea of a federal minimum wage had taken hold. In 1938, Congress passed the Fair Labor Standards Act — which a more progressive Supreme Court upheld — creating a mandatory federal minimum wage.

The new law was enormously effective: within a year, it brought millions of low-paid workers up to a wage of 30 cents an hour. It also had major weaknesses, notably that it was not indexed to inflation. Congress has to raise it, which leaves low-income workers at the mercy of politics...................