Why Minimum Wage Matters
The federal minimum wage represents more than just a number on a paycheck; it is a fundamental pillar of economic security designed to ensure that full-time work provides a dignified quality of life. Understanding its history and current limitations is essential for creating a future where every worker can thrive.
Why the Minimum Wage Was Created
The federal minimum wage was created through the Fair Labor Standards Act of 1938 during the New Deal era. Its primary purpose was to establish a basic wage floor, reduce exploitation, and support fair labor standards. At a time of low wages and unsafe working conditions, it helped ensure that full-time work provided a minimum level of economic security. The original federal minimum wage was set at just $0.25 per hour.
How the Federal Wage Floor Has Changed Over Time
1938: The Fair Labor Standards Act establishes the federal minimum wage at $0.25 per hour.
Congress periodically raises the federal wage floor through amendments to the Act to account for economic shifts.
2007–2009: The federal minimum wage rises in three scheduled steps from $5.15 to $7.25 per hour.
2009: The federal minimum wage reaches $7.25 per hour.
Today: The federal minimum wage remains at $7.25, despite substantial increases in living costs.
Authority: U.S. Department of Labor, Federal Minimum Wage History.
Why Today’s Wage Is Insufficient for Many Workers
The federal minimum wage is a national floor, not a complete measure of what workers need to survive. Low wages can contribute to persistent difficulty paying for essentials like housing, food, transportation, and health care. For many workers, full-time employment at $7.25 is associated with an inability to cover child care, education, or emergencies, often leading to growing debt and financial instability.
How Living Costs Differ by City
Federal Floor
$7.25
City Estimate
Varies locally
Louisiana Goal
$25.00
$25 per hour is our proposed Louisiana wage floor, reflecting the specific housing and transportation costs of our community. A living-wage estimate for workers in other U.S. cities may differ significantly. Local wage floors should be calculated based on specific regional data for rent, food, health care, and child care rather than universal standards.
What Research Shows
Spending and Local Economies
Evidence suggests a correlation between increased minimum wages and boosted local spending. When lower-income workers earn more, they typically spend those earnings immediately on basic goods, supporting local businesses. While these findings show a strong association, researchers note that local economic conditions also play a significant role.
Mental Health and Financial Strain
Studies have identified correlational links between wage increases and improved mental health outcomes. Financial strain is a documented stressor; reducing this strain through higher wages is associated with decreased reports of anxiety and financial despair. Research in this area continues to explore the complex relationship between income floors and long-term wellness.
Our Baton Rouge Proposal
My Turn To Speak advocates for a living wage that reflects local costs and economic realities. Specifically, we propose a $25 per hour wage floor for Baton Rouge. We believe other cities should develop their own unique proposals using transparent local cost data for housing and survival, rather than applying a single national standard that may not fit regional needs.
How You Can Help
Sources
Fair Labor Standards Act of 1938
U.S. Department of Labor: Wage History
Living Wage Calculator Results
Consumer Spending & Economic Research Report
Public Health & Financial Stability Study
Last updated: June 2026