Discuss how the new minimum come about

The new minimum wage in the United States, which was increased to $7.25 per hour in 2009, was the result of a long and complex process involving various stakeholders, including lawmakers, labor unions, and business organizations. Here's a brief overview of how it came about:

Background: The federal minimum wage was first established in 1938 as part of the Fair Labor Standards Act (FLSA), which aimed to protect workers from exploitation and ensure a fair standard of living. The initial minimum wage was set at $0.25 per hour, which was equivalent to about $4.25 in today's dollars.

Post-WWII era: Following World War II, the minimum wage was increased several times to keep pace with inflation and to reflect the growing economy. By the 1960s, the minimum wage had reached $1.60 per hour, which was equivalent to about $12.50 in today's dollars.

Stagnation and decline: However, in the 1970s and 1980s, the minimum wage began to stagnate and even decline in real terms. This was due to a combination of factors, including inflation, economic downturns, and changes in the labor market. By the 1990s, the minimum wage had fallen to $4.75 per hour, which was equivalent to about $7.50 in today's dollars.

Advocacy and legislation: In the early 2000s, labor unions, advocacy groups, and some lawmakers began pushing for an increase in the minimum wage. They argued that the wage had not kept pace with inflation and that many workers were struggling to make ends meet. In 2005, the House of Representatives passed a bill to increase the minimum wage to $7.25 per hour, but it stalled in the Senate.

2007-2008 economic crisis: The global financial crisis of 2007-2008 led to a significant increase in unemployment and a decline in wages. This created a sense of urgency among lawmakers and the public to address the issue of low wages. In 2007, the House of Representatives passed another bill to increase the minimum wage to $7.25 per hour, and this time it was signed into law by President George W. Bush.

Effective date: The new minimum wage of $7.25 per hour took effect on July 24, 2009. The increase was phased in over a period of several months, with the first increase to $6.55 per hour taking effect on July 24, 2008, and the final increase to $7.25 per hour taking effect on July 24, 2009.

Impact: The increase in the minimum wage has had a significant impact on low-wage workers, particularly those in industries such as retail, food service, and hospitality. While some argue that the increase has led to job losses and reduced hours, others argue that it has helped to reduce poverty and improve the overall standard of living for low-wage workers.

Overall, the new minimum wage of $7.25 per hour was the result of a long and complex process involving various stakeholders and a combination of economic, political, and social factors.