The definition of minimum wage is “a sum of money which represents the minimum amount per hour that workers must receive according to law” (minimum wage). The minimum wage, like other laws, is used to keep the economy in balance. Minimum wage laws were invented in Australia and New Zealand with the aim of ensuring a minimum standard of living for unskilled workers. (Linda Gorman) The minimum wage sets a price for the services offered. Many different principles can be used to explain the minimum wage and explore its different aspects. Including what the minimum wage does for our economy and its current state.2. History of the Minimum WageAccording to Gregory Mankiw's Principles of Macroeconomics, "The U.S. Congress first established a minimum wage with the Fair Labor Standards Act of 1938" (Mankiw 4-119). The minimum wage is used to set a wage limit that employers must pay their employees. Over the years, the minimum wage has increased as productivity has increased. The minimum wage has constantly fluctuated and changed several times. Congress created the minimum wage with the Fair Labor Standards Act of 1938. The first minimum wage was only 25 centers per hour. Throughout history, the minimum wage has increased little by little, increasing by a few cents each time. The last time the United States changed the minimum wage was in 2007, which was a huge jump from $5.15 an hour to $7.25 an hour. This $2.10 jump represents a significant increase. Over the years, it is obvious that the minimum wage is constantly evolving. “. Its average purchasing power was $6.60 an hour in 2013 dollars. But it varied from a low of $3.09 an hour in late 1948 to a high of 8.67 dollars per hour in 1968 (Sherk, J. (June 25, 2013). There is currently a debate to raise the...... middle of article ......Works Cited • What is -what is the minimum wage: its history and its effects on the economy The Heritage Foundation Retrieved April 20, 2014 from http://www.heritage.org/research/testimony/ 2013/06/what-is-the-. minimum-wage-its-history-and-effects-on-the-economy• U.S. Department of Labor – Wage and Hour Division (WHD) – Minimum Wage (nd) - Wage and Hour Division (WHD) -. Minimum Wage Retrieved April 20, 2014 from http://www.dol.gov/whd/minwage/chart.htm• Minimum Wage (nd) from http://www.merriam-webster.com/dictionary/minimum Wage• Linda Gorman. “Minimum Wages.” The Concise Encyclopedia of Economics 2008. Retrieved April 24, 2014 from the World Wide Web. : http://www.econlib.org/library/Enc/MinimumWages.html• Mankiw, NG (1998). Fort Worth, TX: Dryden Press.