Final answer:
In 2009, the U.S. federal minimum wage was $7.25 per hour. If a state sets a higher minimum wage, that higher wage is the enforceable rate. This reflects efforts towards a living wage, considering the insufficiency of the federal minimum to meet basic living standards.
Step-by-step explanation:
In 2009, the U.S. federal minimum wage was established at $7.25 per hour. However, a notable aspect of wage regulation is that when a state mandates a higher minimum wage, employers within that state are obligated to comply with the higher rate, effectively superseding the lower federal minimum wage. This reflects a commitment to addressing the living wage concept, which advocates for a wage level sufficient to maintain a standard of living considered normal and reasonable.
The notion of a living wage gained prominence due to concerns that the federal minimum wage might not adequately cover the basic needs of workers, particularly in households relying on a single income. In cases where a family consists of two adults and two young children, and the sole breadwinner earns the minimum wage, the resulting annual income often falls below the federal poverty line for a family of four. This stark reality underscores the gap between the federally mandated minimum wage and the actual cost of living.
The living wage concept is rooted in the belief that compensation should not merely meet bare survival needs but should also enable individuals and families to lead a decent life. Advocates argue that a living wage contributes to reducing poverty, improving the overall quality of life, and fostering economic stability. By allowing states to set minimum wages that reflect the local cost of living, the system recognizes and responds to the diverse economic conditions across different regions of the country.
In summary, the principle of mandating a higher state minimum wage when it exceeds the federal standard aligns with the broader goal of addressing the living wage issue. It acknowledges the economic realities faced by workers and their families, seeking to bridge the gap between the minimum wage and the actual costs associated with maintaining a reasonable standard of living.