Final answer:
The current federal minimum wage for non-tipped workers remains at $7.25 per hour since 2010, with the concept meant to ensure that full-time workers can maintain a basic standard of living. Despite state-level changes and an executive order raising wages for federal contractors, the federal base rate has not increased.
Step-by-step explanation:
The current federal minimum wage for non-tipped workers has been steady at $7.25 per hour since 2010. Despite various states and localities setting higher minimum wages, this federal standard has not changed. The concept of minimum wage acts as a price floor, intended to ensure that full-time workers can afford a basic standard of living.
Although adjustments to the federal minimum wage are not frequent, certain actions have been taken to increase wages for some groups of workers. For instance, under President Biden's executive order in April 2021, the minimum wage for federal contractors was increased to $15 per hour.
It is important to note that this wage can be considered low when taking into account the cost of living and inflation over time. The $7.25 rate translates to an annual income for a full-time worker that is just above the Federal poverty line, yet purchasing power has decreased as the cost of living continues to rise.