keep a family of three out of poverty. Unfortunately, the federal minimum wage requires that employers pay only $3.35 per hour. This means the for 5 percent of all U.S. workers who earn the minimum wage or less is at the poverty level. Approximately another 5 percent, who earn slightly more than the minimum wage, are not much better off. One rationale for the minimum-wage law, first established in 1938, was that a minimum wage prevented wages from falling so low that workers could not provide for their own subsistence; the minimum wage was to supply a ballast for our social principles, as well as for the earnings of workers. Since 1938, working full-time at the minimum wage yielded a subsistence income(sometimes more) for a family of three. In 1987, how ever, wage is just 78 percent of the poverty wage. This is the lowest percentage of the poverty wage that has existed in the United States since 1950-12 years before the War was declared! The minimum does not just establish absolute standards. It also establishes the position of workers relative to one another, in that it in fluences the size of the gap between the lowest paid worker in society and the typical manufacturing worker. In 1950, minimum-wage earned approximately half of what manufacturing workers earned. In 1987, the minimum wage is 34 percent of the average manufacturing wage. Thus, the wage ratio between the lowest paid worker and the factory worker went from 1:2 in 1950 to only 13 in 1987 Taken from the testimony of Teresa Ghilarducci before the Pennsylvania House of Representatives, August 26-27, 1987 Why Do Governments Control Prices? Do you recall your first lemonade stand? You probably sold your lem onade for about 25 cents per cup. If you were successful and earned enough money to enjoy luxuries like skateboards and extended video arcade visits, it is quite likely that your"friends" decided to get in on the act. Just when you thought the goose would never stop laying golden eggs for you, little Jimmy, the seven-year-old entrepreneur from across the street, opened his own stand and offered the drink for only 20 cents. Others followed, each offering their lemonade at a