Massachusetts becomes the first state of the United States to set a minimum wage.
A minimum wage is the lowest remuneration that employers can legally pay their employeesthe price floor below which employees may not sell their labor. Most countries had introduced minimum wage legislation by the end of the 20th century. Because minimum wages increase the cost of labor, companies often try to avoid minimum wage laws by using gig workers, by moving labor to locations with lower or nonexistent minimum wages, or by automating job functions.The movement for minimum wages was first motivated as a way to stop the exploitation of workers in sweatshops, by employers who were thought to have unfair bargaining power over them. Over time, minimum wages came to be seen as a way to help lower-income families. Modern national laws enforcing compulsory union membership which prescribed minimum wages for their members were first passed in New Zealand and Australia in the 1890s. Although minimum wage laws are now in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage.
Supply and demand models suggest that there may be employment losses from minimum wages. However, minimum wages can increase the efficiency of the labor market in monopsony scenarios, where individual employers have a degree of wage-setting power over the market as a whole. Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, reduces inequality, and boosts morale. In contrast, opponents of the minimum wage say it increases poverty and unemployment because some low-wage workers "will be unable to find work...[and] will be pushed into the ranks of the unemployed".
Massachusetts ( (listen), ), officially the Commonwealth of Massachusetts, is the most populous state in the New England region of the United States. It borders on the Atlantic Ocean and Gulf of Maine to the east, Connecticut to the southwest and Rhode Island to the southeast, New Hampshire to the northeast, Vermont to the northwest, and New York to the west. The capital of Massachusetts is Boston, which is also the most populous city in New England. It is home to the Greater Boston metropolitan area, a region influential upon American history, academia, and industry. Originally dependent on agriculture, fishing and trade, Massachusetts was transformed into a manufacturing center during the Industrial Revolution. During the 20th century, Massachusetts's economy shifted from manufacturing to services. Modern Massachusetts is a global leader in biotechnology, engineering, higher education, finance, and maritime trade.Massachusetts was a site of early English colonization: the Plymouth Colony was founded in 1620 by the Pilgrims of the Mayflower, and in 1630 the Massachusetts Bay Colony, taking its name from the indigenous Massachusett people, established settlements in Boston and Salem. In 1692, the town of Salem and surrounding areas experienced one of America's most infamous cases of mass hysteria, the Salem witch trials. In 1777, General Henry Knox founded the Springfield Armory, which, during the Industrial Revolution, catalyzed numerous important technological advances, including interchangeable parts. In 1786, Shays' Rebellion, a populist revolt led by disaffected American Revolutionary War veterans, influenced the United States Constitutional Convention. In the 18th century, the Protestant First Great Awakening, which swept Britain and the Thirteen Colonies, originated from the pulpit of Northampton preacher Jonathan Edwards. In the late 18th century, Boston became known as the "Cradle of Liberty" for the agitation there that later led to the American Revolution.
The entire Commonwealth of Massachusetts has played a powerful scientific, commercial, and cultural role in the history of the United States. Before the American Civil War, Massachusetts was a center for the abolitionist, temperance, and transcendentalist movements. In the late 19th century, the sports of basketball and volleyball were invented in the western Massachusetts cities of Springfield and Holyoke, respectively. In 2004, Massachusetts became the first U.S. state to legally recognize same-sex marriage as a result of the Massachusetts Supreme Judicial Court's decision in Goodridge v. Department of Public Health. Many prominent American political dynasties have hailed from the state, including the Adams and Kennedy families. Harvard University in Cambridge is the oldest institution of higher learning in the United States, with the largest financial endowment of any university, and Harvard Law School has educated a contemporaneous majority of Justices of the Supreme Court of the United States. Kendall Square in Cambridge has been called "the most innovative square mile on the planet", in reference to the high concentration of entrepreneurial start-ups and quality of innovation which have emerged in the vicinity of the square since 2010. Both Harvard and MIT, also in Cambridge, are perennially ranked as either the most or among the most highly regarded academic institutions in the world. Massachusetts residents have been described by the World Population Review as having the highest average IQ of all U.S. states, exceeding 104, and the state's public-school students place among the top tier in the world in academic performance. The state has been ranked as one of the top states in the United States for citizens to live in, as well as one of the most expensive.