The Movement for Higher Wages: From Poverty to a Living Wage
American workers banded together to demand higher wages beginning with the Boston ship carpenters in 1675. With the founding of the American Federation of Labor (AFL) in 1886, the labor movement promoted the idea of a general “living wage” which would enable all workers, including workers not a part of a union, to support a family, participate in public life, and maintain an “American standard of living” higher than the 19th century European urban working class.
In the depths of the 1930s depression, both unemployed and union workers mobilized to successfully support the passage of the Fair Labor Standards Act, which established the first national minimum wage at $0.25/hour (equivalent to $4.31/hour in 2017 dollars). From this point on, the labor movement applied pressure to local, state, and federal governments to raise the minimum wage as high as possible.
During the post-World War II economic boom, the labor movement successfully pushed the federal minimum wage to $1.60/hour in 1968 (equivalent to $11.20 in 2017 dollars). Due to difficult economic conditions in the following decades, organized labor was unable to sustain the momentum to increase the minimum wage and it declined to the 2017 equivalent of $7.25/hour.
Today, the labor movement supports the Fight for $15 organization uniting a broad range of community groups and unions to renew the struggle to make the minimum wage truly a living wage.
AFL-CIO poster illustrating the impact higher wages have across society, 1950s-1960s. AFL-CIO Posters, Broadsides, and Art Collection.
FAQs
With the founding of the American Federation of Labor (AFL) in 1886, the labor movement promoted the idea of a general “living wage” which would enable all workers, including workers not a part of a union, to support a family, participate in public life, and maintain an “American standard of living” higher than the 19 ...
What is the history of living wages? ›
The concept of a living wage, though it was not defined as such, can be traced back to the works of ancient Greek philosophers such as Plato and Aristotle. Both argued for an income that considers needs, particularly those that ensure the communal good.
Was minimum wage ever supposed to be a living wage? ›
Though often considered the baseline of livable wages, it is important to note that even when it was first created, it did not represent a true living wage. In 1938, the federal minimum wage was set at 25 cents per hour and rose periodically over the following 71 years.
What percentage of Americans make a living wage? ›
Nearly half of Americans (44 percent) are not paid a living wage for their labor, which can be defined as the income necessary for a person or family to not only meet their basic needs, such as food and shelter, but also provide stability and financial independence needed for a good quality of life.
Who created the real living wage? ›
It was started by Citizens UK - the national home of community organising, in 2001.
Is $25 an hour a livable wage? ›
An analysis of the living wage (as calculated in December 2022 and reflecting a compensation being offered to an individual in 2023), compiling geographically specific expenditure data for food, childcare, health care, housing, transportation, and other necessities, finds that: The living wage in the United States is ...
Is $17 an hour a livable wage? ›
California. California's living wage is $19.41, or $40,371 a year for an individual. A family of four requires $27.42, or $101,378 a year.
What president started the minimum wage? ›
The first federal minimum wage was instituted in the National Industrial Recovery Act of 1933, signed into law by President Franklin D. Roosevelt, but later found to be unconstitutional. In 1938, the Fair Labor Standards Act established it at 25¢ an hour ($5.41 in 2023).
Why doesn t america raise the minimum wage? ›
Opponents of raising the minimum wage believe that higher wages could lead to inflation, make companies less competitive, and result in job losses.
What is a living wage in the US for a single person? ›
To live “comfortably” as a single person in 99 of the largest U.S. metro areas, you'll need a median income of $93,933, according to a recent SmartAsset analysis.
In 2023, the federal poverty level definition of low income for a single-person household is $14,580 annually. Each additional person in the household adds $5,140 to the total. For example, the poverty guideline is $30,000 per year for a family of four.
Is $15 an hour a livable wage? ›
But here's the thing: Neither is $15 a livable wage for the vast majority of Americans. Although corporations and politicians continue to use $15 an hour as their go-to target for decent pay, we desperately need to raise the bar.
What is the average salary to live comfortably in us? ›
Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
What is the history of the livable wage? ›
With the founding of the American Federation of Labor (AFL) in 1886, the labor movement promoted the idea of a general “living wage” which would enable all workers, including workers not a part of a union, to support a family, participate in public life, and maintain an “American standard of living” higher than the 19 ...
Why was living wage created? ›
The consensus is that a living wage provides individuals with enough income to support themselves without falling below the federal poverty line (FPL). In essence, it gives workers and their families the means to maintain a decent standard of living so they can afford: Housing. Healthcare.
What are real wages history? ›
Real wages are wages adjusted for inflation, or, equivalently, wages in terms of the amount of goods and services that can be bought. This term is used in contrast to nominal wages or unadjusted wages.
What is the history of the family wage? ›
A family wage – a basic wage, with a supplement by family size, was adopted by the dominant trade union in the British Mandate of Palestine (now the state of Israel), Histadrut, in 1923, and remained policy for a decade, but implementation was limited.
What is the significance of the living wage? ›
According to the International Labour Organization (ILO), a living wage should be enough to cover the costs of all essentials, such as food, health, education, housing, and other necessary goods and services, in accordance with national circ*mstances.
Who created the living wage calculator? ›
The Living Wage Calculator was originally developed as an alternative to federal poverty standards in 2003 by Dr. Amy K. Glasmeier — professor of Economic Geography and Regional Planning at MIT's Department of Urban Studies and Planning (DUSP) — and Dr. Tracey Farrigan, a graduate student at the time.