Indexation of the minimum wage was considered some years prior to enactment of the Fair Labor Standards Act (FLSA) in 1938. It continues to be an issue of discussion and, in some cases at the state level, has been introduced as a part of the general minimum wage structure. This report provides an evolutionary history of minimum wage indexation and of the federal legislative interest in the concept. In 1937, Congress decided that certain low-wage workers should be protected by a federal minimum wage law, and set in motion initiatives that would evolve into the Fair Labor Standards Act of 1938. As amended through the years, the FLSA has become the primary federal statute dealing with wage rates for low-wage workers. As the law now stands, the general minimum wage is $5.85 per hour—to increase, in steps, to $7.25 per hour by July 2009. The federal minimum is fixed by statute and altered whenever there is sufficient support to do so in Congress. The result has been a fluctuation in the real (or inflation-adjusted) value of the minimum wage. It reached its highest level in 1968, and has since, intermittently, been allowed to decline in value. To reach the 1968 level in real terms, the current minimum would need to be slightly in excess of $9.50 per hour. In order to eliminate fluctuations in its real value, some have suggested that the federal minimum should be pegged to an outside economic variable: for example, to a component of the cost-of-living index or to some other relatively neutral series. The concept of a minimum wage, initially, was to provide workers with a minimum income. But how minimal? What might be included within a minimal standard? To whom should not less than the minimum be paid? And by whom? Men, it was assumed, would need at least the minimum wage to support themselves and their families. But what about women, especially those with an employed spouse? And young persons: youth workers? Are certain types of work, by definition, minimum wage work —deserving payment at the minimum wage or below? Early in the past century, some proposed a living, family, saving wage : that is, to allow for safe and healthful living, for procreation, and for setting aside a little for one's old age. Still, there were problems with definitions. How safe and how healthful? How much procreation: one child, two, or perhaps five or six? Setting aside a little for one's old age may be appropriate, but how much? John A. Ryan, an early proponent of a minimum wage, argued in a 1906 study that a "laborer's right to a Living Wage is the specific form of his generic right to ... sufficient of the earth's products to afford him a decent livelihood." This right, Father Ryan suggested "... is as valid as his right to life: the difference is merely in degree of importance." Later, Ryan asked rhetorically: "Well, what is a decent livelihood?" With other scholars of the period, Ryan was willing to suggest at least a modest framework by way of answer—if the concept remained vague and, perhaps, arguable. It involved "... something more than the necessaries which will enable a worker to function effectively as an instrument of production...." And, further: ... that amount of goods which will enable a human being to live as a human being rather than as an animal, even a well fed animal. It supposes that he shall have food, clothing and shelter sufficient to maintain him and his family in health, and that they shall have the means of some recreation.... It means the requisites of a religious and moral life; ... It means also some opportunities for intellectual development, some reading matter, and at least an elementary education for the children. In general, therefore, it comprises an elementary degree of physical, mental, moral, religious, social and recreational welfare. But then, Ryan added, when the concept is presented in terms of money, men "...naturally differ considerably one from the other, and yet whenever the thing has been systematically undertaken men have been able to come to an agreement." Other scholars seemed equally sure. "[D]ifferences of opinion" may develop "over the concrete question of how much in any given case this wage must be," observed economist Henry R. Seager in 1918, but "the principle that a wage sufficient to maintain the wage earner and his family in full economic efficiency will be denied by no one." Seager declared: "The living wage is thus an indeterminate but highly important basic standard which all wage adjustment boards should have in mind...." In 1890, the Consumers' League of the City of New York was established and quickly blossomed into the National Consumers' League. Its general purpose was social uplift. Through the next several years, League representatives began a systematic exploration of the plight of low-wage workers, attempting to connect an inadequate wage with malnutrition and vice. Gradually, attention came to focus upon the minimum wage. In 1911, Massachusetts became the first state to move for adoption of a minimum rate; the campaign then spread to Oregon, Wisconsin, Minnesota, California, and other states. The experiment was new to the United States, though it had been tried elsewhere. After considerable discussion, a wage board approach was taken. Speaking generally (because there were differences among the states and, in some states, other processes were utilized), the board would examine an industry and if it found that a significant body of workers was being paid less than what was considered minimal, a new standard might be adopted. In one case (Massachusetts), the penalty was moral suasion: publicity concerning the failure to pay a minimum wage. The purpose of the boards was to increase the general standard and, then, to maintain the value of the minimum wage at a constant level or, at least, at a level in keeping with the cost-of-living. As one advocate stated: "None of the American boards ever arrived at the intelligent arrangements achieved by some of the British trade boards of 'pegging the rate' at a given period by providing for its automatic increase and decrease with variation in the cost-of-living index number." Nonetheless, the cost-of-living connection was a very real presence throughout. During the early years of the minimum wage movement, there was always the threat that a statute would be declared unconstitutional. In the spring of 1937, the Supreme Court ruled in favor of a Washington state labor standards statute, triggering a new round of minimum wage initiatives. Given the new spirit of the Court, wage/hour legislation was promptly adopted by the Senate. In the House, various versions of the measure moved slowly and, only in the summer of 1938, notwithstanding the continuing Depression, was the Fair Labor Standards Act adopted and sent on to the White House (P.L. 75-718). In the beginning, the FLSA adopted both a fixed rate basis of calculation and the wage board approach. For covered workers (relatively few in number, mostly industrial workers), the basic rate was 25 cents an hour, to rise in steps to 40 cents an hour seven years from the date of enactment. At the same time, in order to reach a "universal minimum wage of 40 cents an hour" as rapidly "as is economically feasible without substantially curtailing employment," the Administrator of the new wage/hour board "shall from time to time convene" an industry committee for each industry where an increase would seem to be justified. During 1937 and 1938 when the future FLSA was under consideration by the Congress, tensions arose that kept the bill from being enacted in its initial form. Speaking generally, a compromise was developed that allowed the several parties to claim victory in the negotiations. The northern states would have preferred a higher wage (40 cents an hour); the south agreed to settle for 25 cents an hour—leading up to 40 cents some years later. Representative Mary Norton (D-NJ), then chair of the Committee on Labor, argued that "a bill of this kind is very necessary if we are going to help the underpaid workers of our country, reduce the relief rolls, and spread employment." In the wake of World War II, given escalating costs of living, it seemed to some an appropriate time for expansion of coverage under the act. But in precisely what manner (and under what mechanism) remained unclear. Mary Norton, who had moved on to another assignment, returned to testify at the FLSA hearings. Like other witnesses, Norton cited the difficulties of surviving with a wage, in 1947, of 40 cents an hour. Ovie C. Fisher (D-TX) asked if she were opposed to inflation. "Definitely," she replied, but then: "... I do not think 65 cents an hour will ever bring about inflation, with the present cost of living in this country." Samuel McConnell, Jr. (R-PA), chair of the Subcommittee, then turned to Ms. Norton with a series of questions concerning motivation. "Frankly," Mrs. Norton stated, "... the 65-cent minimum that I have selected does not meet with what I think is necessary. I simply set that figure because I felt that the Congress might consider that rather then a 75-cent minimum ...." Chairman McConnell queried: "What would be the factors, in your mind, that would determine a minimum-wage rate." Norton replied: "... first of all, the high cost of living." The dialogue continued: Mr. McCONNELL. What kind of a cost of living? Would you consider the cost of living for the entire country, or the cost of living in a certain section? Mrs. NORTON. It is the cost of living for those people who are unorganized and have no other method of having their wages raised. McConnell continued to press for specifics. "You are definite, then, in your opinion, that the minimum wage is to be based on the cost of living, and you will stand by that?"