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the minimum wage was pushed by three factions each had their distinct purpose although there was quite a bit of overlap among them the first faction consisted of progressives who believed that a minimum wage would raise the living standards of the poorest americans this group was the most economically naive
Return to top. Minimum wage laws set legal minimums for the hourly wages paid to certain groups of workers. In the United States, amendments to the Fair Labor Standards Act have increased the federal minimum wage from $.25 per hour in 1938 to $5.15 in 1997.Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers.aising the minimum wage increases both the probability that a poor family will escape poverty through higher wages and the probability that another nonpoor family will become poor as minimum wage increases price it out of the labor market.