The minimum wage was created during the Great Depression. We need to raise it during the Pandemic Recession
Originally published at the PA Capital-Star on March 7, 2021 Opponents of raising the minimum wage seem to have an inexhaustible supply of concerns which they repeat no matter how often we present evidence that refutes them. The latest one is the claim that we cannot raise the minimum wage during the COVID-19 recession. Raising the minimum wage during a recession, they say, will stall our recovery. This might sound plausible for a second—or until one remembers that the minimum wage was created during the Great Depression by the Fair Labor Standards Act of 1938 (FLSA). After a slow recovery from the Great Depression, the economy went into reverse in 1937 and the beginning of 1938. The reason is clear. In 1936, President Franklin Roosevelt started to listen to orthodox economists worried about the budget deficit. Taxes were raised, government spending was cut and the U.S. government had a balanced budget in 1937. The Federal Reserve raised interest rats as well, hurting the economy. But the economy suffered. Unemployment, which was still high… Continue reading







