The Fair Labor Standards Act of 1938 was created to protect the rights of American workers and minimize poverty rates. However, a full-time worker earning the current minimum wage of $7.25 earns $15,080, setting the worker below the federally mandated poverty line for a family of two.
Earning more money also means spending more - minimum-wage workers would be able to pump more money into the economy and demand more goods and services from businesses. These businesses would in turn hire more workers to meet this demand, effectively reducing unemployment.
If the minimum wage was indexed for inflation, it would be $10.38. As inflation decreases the value of the dollar and the cost of living increases, the current minimum wage can no longer support the American lower class.