Great Intentions, Unfortunate Application

If Adam Smith were to be alive today, he would approve of the United States federal minimum wage, the smallest hourly wage a person can obtain when employed. Although at the same time, Adam Smith would be disappointed with the current rate and stigma attached to minimum wage. When Franklin D. Roosevelt presented this idea to the American public and Congress, his main objective was to establishing a living wage so that the average American could survive by working one steady job. Smith would defiantly agree with Franklin D. Roosevelt’s plan because Smith believes a person should do one job full-heartedly and with integrity. Smith also looks to each person to have a special talent per-say and proceed with only that talent. He even states, “Each individual becomes more expert in his own peculiar branch, more work is done upon the whole” (28). Of course, at this time, Americans were suffering the effects of the Great Depression, so job stability and money was a primary concern. Therefore, the public was thrilled about this idea and urged the bill to be past, the public support reached over 80 percent. Today, we no longer have a “living wage”, the minimum wage simply pays a person the bare minimum. As Adam Smith said “his wages must at least be sufficient to maintain him” (32). Unfortunately, a person cannot support himself or herself on six dollars and fifty-five cents an hour that is mandated from the federal government. Not only did Adam Smith believe one should be able to support himself with his job but to support his family as well. He states “ labourers must earn at least double their own maintenance, in order that one with another they may be enabled to bring up two children; the labour of the wife” (33). Unfortunately, in today’s economy a single minimum wage job will not support one individual let alone four. Most who primarily live off a minimum wage job are facing poverty. On one hand, I do believe that Adam Smith would support the concept, theory, and initial intent of minimum wage. On the other hand, I do not believe he would be happy with the current minimum wage rates. Information found on :http://www.jstor.org/stable/2747359?seq=11 and http://www.dol.gov/esa/minwage/america.htm.