A Historical Analysis of the Bush Minimum Wage Ruling and Its Consequences

UncategorizedBy Apr 28, 2023

The Fair Minimum Wage Act of 2007, which included the Bush Minimum Wage Ruling, increased the minimum wage in the US from $5.15 to $7.25 over a two-year period, marking the first increase in over a decade. Pressure from advocacy groups, workers, and labor unions, in the face of growing income inequality, led to the ruling. Positive implications included millions of low-wage workers earning a more livable income, boosted consumer spending, and increased job growth, although there were some negative consequences. Businesses argued that increased wages would lead to higher prices and job loss, and enforcing the policy across state lines was challenging.


Minimum wage has always been a contentious issue in America and around the world. The quest for adequate pay and treatment of workers goes as far back as the 1800s, where labor unions fought for fair wages and equal work rights for all. While there have been numerous policies put in place to address this issue, the Bush administration’s Minimum Wage Ruling stands out as one of the most significant in modern times. In this article, we will analyze the historical significance of this ruling and its consequences.

Historical Analysis

The Bush Minimum Wage Ruling was a part of the Fair Minimum Wage Act of 2007, which aimed to raise the minimum wage across the country. This act was the first time the minimum wage had been raised in over a decade since the previous increase in 1997. This ruling increased the wage from $5.15 to $7.25 over a two-year period. This legislation also included some tax incentives for small businesses.

One of the most significant factors that led to this ruling was the growing income inequality in the country. The income gap was at an all-time high, with the top 1% of Americans earning almost triple the income of the bottom 50%. The minimum wage had not kept up with inflation, and many workers were struggling to make ends meet. Advocacy groups, workers, and labor unions had been advocating for a raise in the minimum wage for years, and this led to the rise of political pressure.

The implications of this ruling were far-reaching. The increase in the minimum wage meant that millions of low-wage workers would earn a more livable income. They would have more purchasing power to pay for basic necessities, and this would also help boost the economy. The rule was also expected to have a positive impact on job growth since workers would have more money, which could lead to increased consumer spending.

However, the ruling also had some negative consequences. Some businesses were concerned about the impact it would have on their profits. They argued that the increase in wages would lead to higher prices, which would cause consumers to spend less. Thus, businesses would be forced to reduce their workforce, decrease hours, or even go out of business.

There was also a concern about the difficulty in enforcing the policy across state lines since states have different minimum wage laws. This could lead to workers in some states being disadvantaged compared to workers in other states.


Q: What was the minimum wage before the 2007 ruling?

A: The minimum wage was $5.15 per hour before the 2007 ruling.

Q: How was the new minimum wage implemented?

A: The new minimum wage was implemented over a two-year period. It was increased gradually from $5.15 to $7.25.

Q: Did the minimum wage cause job loss?

A: There is no evidence to suggest that the minimum wage increase caused job loss. Some businesses claimed that they may have to lay off workers or close down, but this was not the case in most places.


The Bush Minimum Wage Ruling was a significant legislation in addressing income inequality in America. The ruling had far-reaching implications, from raising the income of millions of low-wage workers to creating jobs and boosting the economy. However, the ruling also had some negative consequences, including concerns about enforcement and the impact on businesses. Despite the challenges, the ruling had a positive impact on the lives of millions of people and is a landmark achievement in addressing the issue of fair wages.