$7.25 is not enough..

With how Smith talks about wages in “Of the Wages of Labour” he would be supportive of the minimum wage law, but he would not think minimum wage would be enough. Smith stated, “But though in disputes with their workmen, masters must generally have the advantage, there is, however, a certain rate below which it seems impossible to reduce, for any considerable time, the ordinary wages even of the lowest species of labour,” (32). Smith believed that labor is worth a certain amount of money, and the masters should not take advantage of their workers just because they need work. If there was no law, the masters would always underpay their workers just because they know the workers will work for any wage because they need the money.

However, I do believe Smith would think that the minimum wage should be higher. Smith stated, “A man must always live by his work, and his wages must at least be sufficient to maintain him. They must even upon most occasions be somewhat more; otherwise it would be impossible for him to bring up a family, and the race of such workmen could not last beyond the first generation,” (32-3). A person working for minimum wage would not bring in enough money to support himself let alone a family. In the world today, a person working 40 hours a week for minimum wage would make a mere $15, 080 a year, that is not even with taxes taken out. Smith would not be happy with that amount of money because it would be impossible for him to raise a family. Overall, Smith would be happy there is a minimum wage law, but he would believe the wage should be higher.