Minimum wage = living wage

I wish I got raises in this %

Published on August 3, 2007 By KarmaGirl In Current Events

Being that I manage HR where I work, I get to see all the "news" about minimum wages (both in the state and federal). Our State's minimum wage has always freaked me out at how high it has gotten, but the current changes in FEDERAL minimum wage has me down right fearful.

Why? Because it is now becoming a living wage. Either companies will quit hiring non-skilled workers (where will they work?) or they will start using their non-us factories more.

If you don't know the amounts, don't worry, I'm about to give you the stats.

In 1997, the Federal (don't confuse this with your States, which you may not even have, or it may be higher) the minimum wage was set at $5.15. As of July 24th of this year, it was raised to $5.85. No big deal- that's only a bit over 13% over the course of 10 year. Now, this is where I start to worry- the *second* step will raise the minimum wage to $6.55 on July 24, 2008 (12% over ONE year) and the Third step will raise the minimum wage to $7.25 on July 24, 2009 (10% more).

Now, I don't know about you, but I doubt that I will see raises like that during that time. However, you can bet that cost of living will rise since it will cost business more to employ unskilled workers.

I always looked at minimum wage as the wage that you paid people that were doing completely unskilled jobs (bagging groceries, stocking shelves, collecting carts, making photocopies, packing boxes, etc.) ~$5.50 an hour seems like a good pay for that type of labor. But $7.25???? That's not minimum, that is "living".

When I started the job that I have now, I started out answering phones, taking orders, doing data entry, shipping orders and managing the office. I made $7.00 an hour, and I had a lot of responsibility.

What is $7.00 per hour, anyway? It is $14,560 per year. After tax, that is $11,503, which is $958 per month. Can you live on it? You bet....

This is what my living cost me back then (1995) per month:
apartment: $410
car payment: $120
Insurances: $110 (car and renters)
food: $175
phone: $30
Gas: $40
Misc.: $25
Total: $910 - $48 to spare- that's what I got for being over minimum wage!

Yep, it was tight, but it covered my NEEDS (something that a lot of Americans seem to have a hard time separating from "wants").

So, what about $7.25 an hour 12 years later?
That's $15,080 per year. After taxes: $11,914 (per month: $993)
Same Apartment: $470 (checked on their rates to have the actual number)
car payment: $120
Insurances: $115 (car and renters)
food: $175
phone: $30 (except now it would be mobile!)
Gas: $55
Misc.: $25
Total: $990 - only $3.00 left over- but needs are still paid for...no skills required.

Now, before somebody says "but,that can only support one person!" I shall say- it's meant to. If you have a couple- both of you will have to work, and will be better off (rent won't be higher, as an example). Have a kid? Alternate shifts. Sure, it isn't ideal, but it will pay the bills.

So, we no longer have a real minimum wage- we actually have a living wage. One that many will find "good enough" and never strive to do better. Does this help our country in any way? I don't think so. I think it will hurt it in many ways, especially if this trend continues.

Comments (Page 3)

Gideon MacLeish

on Aug 04, 2007

Man, I paid freakin' 6 bucks for a gallon of milk the other day. ON POST.

Yeah, it's up to 4 here.

There are some individual items that have gone up rather sharply. It's hard, for instance, to find potatoes for less than $3 for a 10 lb bag. And for the aforementioned milk, it's now up to about 3 bucks for POWDERED milk (which is still better than 4 for fresh). And, unlike you, we can't just give up dairy products if we choose to. See, I have 5 Wisconsonites to worry about and it's somehow coded in them that they MUST have dairy...no other products using calcium will do. If they don't have dairy...well, the Wisconsonites in the family are all female and one is in the early stages of puberty so, well, you figure it out!

danielost

on Aug 04, 2007

It's hard, for instance, to find potatoes for less than $3 for a 10 lb bag.

grow your own.

Gideon MacLeish

on Aug 04, 2007

daniel,

OK, I realize you think all Americans live in the potato belt, but our sandbox will not allow potatoes to develop a root structure. We've tried. We need to spend a lot of money improving the soil before we can grow potatoes.

I'm always a fan of encouraging people to self sufficiency; you should know that by now. But sometimes there are limitations, as in this case.

danielost

on Aug 04, 2007

I'm always a fan of encouraging people to self sufficiency; you should know that by now. But sometimes there are limitations, as in this case.

was only trying to help

i don't know anyones conditions but my own.

Gideon MacLeish

on Aug 04, 2007

Yeah, you're right, danielost. I was a bit snippy. It's a good idea, it just doesn't work HERE!

danielost

on Aug 04, 2007

you could use some large planters

then all you would need is soil for the planters

i know expensive

Gideon MacLeish

on Aug 04, 2007

you could use some large planters

then all you would need is soil for the planters

i know expensive

Yeah, and spuds tend to SPREAD! LOL!

We're looking at some lots in town that we may use for gardening.

ParaTed2k

on Aug 04, 2007

OK, I realize you think all Americans live in the potato belt, but our sandbox will not allow potatoes to develop a root structure. We've tried. We need to spend a lot of money improving the soil before we can grow potatoes.

I kind of have to laugh here Gid. I've lived in the famed "Idaho Potato" country. It's all desert, many of the potato farms are "dry farms" and the only other thing that grows around there is sagebrush. ;~D

Not laughing at you though, if you say you've tried, I do believe you, just had to laugh since Idaho potatoes ARE grown in a "sandbox". :~D

Gideon MacLeish

on Aug 04, 2007

Not laughing at you though, if you say you've tried, I do believe you, just had to laugh since Idaho potatoes ARE grown in a "sandbox". :~D

not as bad as this...lol! Two years ago, we tried to grow potatoes, and despite all of our best efforts, all we came up with was little tubers slightly larger than pearl onions. It was a disaster!

See, we're also on a hill, high above the water table. Perhaps that and the mineral content of the soil are the variables?

SanChonino

on Aug 04, 2007

you could use some large planters

then all you would need is soil for the planters

i know expensive

Yeah, and spuds tend to SPREAD! LOL!

Seriously, Gid, you can easily grow potatoes in a big 50-gallon pot. I've done it; and it's cheaper than you'd think - you just have to know the right procedure. When they spread, you just make 'em spread UP instead of OUT.

I know what it's like to have really crappy soil, but e-mail me if you want some advice as to how to do some really effective (and not too expensive) container planting. It's easier than you'd think, and you can get a crapload of potatoes that way . . .

Gideon MacLeish

on Aug 04, 2007

When they spread, you just make 'em spread UP instead of OUT

I've tried the "making em spread up". It didn't work. I'm interested, of course, but it was a monumental failure for us.

Texas Wahine

on Aug 04, 2007

And, unlike you, we can't just give up dairy products if we choose to.

Heh, ain't nobody around here giving up dairy. That's crazy talk.

And LOL at everyone telling you about growing stuff. Haha. If they only knew.

CharlesCS

on Aug 04, 2007

I've had my fair share of low-income jobs. My first job was in KFC at 18. My parents made good money back then so I never really had to work at a young age. I did do summer school jobs that yielded enough to buy some nice sneakers for the next school year. I started out at $5.25 in KFC, I needed only to help around the house. It was only me and my mom and we lived in a $500 apartment in Jersey City, New Jersey. I eventually got raises about every six months and within a year became a Supervisor and got a $1 raise. As you can see within a year I was already above minimum wage.

In my years I've had only 1 minimum wage job, KFC. These have been my other jobs:

teller at Barnet Bank at age 21 - $10/h
Utility locator at 22 - $12/h
Warehouse clerk at 24 - $13/h
Office clerk in same job as above at 28 - $15/h (lost job afetr fight with brother, he was President of the company. Not my fault)
Chemical storage room clerk at 29 - $10/h in Puerto Rico
cook/sandwhich maker/ cashier at uncles diner at 30 - $80 a week
Mailroom clerk temp at 30 - $11 back in the US
Mailroom clerk permanent at 31 - $12

And now I just got promoted to the accoundting dept, I start on Monday. $13 for starters. All this with only a highschool diploma. No college.

Still it has been hard, most of this time I worked alone. My wife stayed home with the kids until recently when she started working at $9/h. We have been a family for the past 9 years so it's been hard but it's mostly my fault for not managing my money better and for not allowing my wife to work because of the kids. But things are improving and now my boss is working on helping me go to school to get a degrre in computers so that I can continue to move up in the company. This is for those who keep saying that there are no good jobs out there and that if people made an effort they might actually do it.

For fark's sake, I bought my first car for $800.00.

Hah, I got you beat. I got my first car at around 19 or 20, a $600 Mazda 626. I had no door lock, no radio, the front bumber stuck out the right side about 8 or 9 inches. I put commercial insurance on it claiming it to be used to deliver products from a catalog my mom bought and sold stuff from, Fingerhut I believe it was. $79 a month, not bad. From here I have been stuck around the same range of vehicles.

1987 Pontiac Sunbird stationwagon - $700 (broke the first day I got it)
1993 Toyota Corolla - $7000 (best car I've had so far, eventually fell apart)
1984 Toyota Camery stationwagon - $2000 in Puerto Rico
1992 Ford Escort - $4000, still paying the load on this one
1992 Ford Explorer - $1500 here in the US (current vehicle)
1994 Ford Explorer - $2500 for my wife

I bought the Ford Explorers cause of the space. They really arent that bad on fuel. I do plan on getting rid of mine for something smaller. Maybe a scooter or a motorcycle. My job is close so it's all good. Eventually phase out my wifes truck for something a bit more relaible like a minivan. A newer one. Her truck had more problems that I was aware of. Hell mine is in better conditions in a way. Just about every one of these cars reached or passed the 100,000 mile marker.

In the end, it's not that hard and that bad if you manage you money correctly (this from one who has not done it right yet but can calculate it and it makes sense to me)

These days, the prospect of the american dream is reduced to living in a particular state in middle-america, and eating rice & beans.

I'm sorry, what is wrong with rice and beans? Is it really every Americans dream to eat steak and fillet mignon every day? Does every American have to eat this good and have the best the world have to offer? Is it trully our goal to make sure there is a big screen TV, an xbox, the latest computer, internet, cable, an SUV with an unlimited gas card, well you get the point, in every house in the US? If anything the prospect of the American Dream is to make more money while doing less work. It's sad to see a person who has worked hard for many years to make more money only to have a new employee come close to or match their wage on the first day of work.

I guess I'm just an optimist,

Nothing wrong with that, doesn't mean that makes us pessimist.

if paying more money to people who need it more than I do costs me some of my wealth, however indirectly, so be it.

I wonder if you are so willing to give more with the belief it will help the less fortunate, are you paying more in taxes that you have to? Are you giving more money to the Gov't than you have to pay in taxes? I'm always curious to know if people with this kind of belief actually tell their employers to take more taxes out and do they give a lot to charity.

But I guess most people aren't like that, they want only one thing...more money for themselves.

Interesting, I guess you can say I am one of those people. I want more money, especially the one I work hard for. I want more of my hard earned money to go towards the benefit of my family, not those who refuse to work and chose to live off of people like me thru Gov't programs. I know not all people are like this but many are, I should know my aunt and many friends of the family are like this. I work hard to make to earn my paycheck, so that I can get better pay raises and promotions so that I can get more money. I'm not looking to live like Donald Trump or Bill Gates, I just want enough to give me a decent life with all the wants I can get, so long as I've earned it. And help my mom since she is not well and has a hard time finding jobs with only a 6th grade education.

I'm all for helping those who need a push, but I'm also for making sure that those who need the push are doing it to better themselves and not leach off the system for the rest of their lives. There's an old saying in Puerto Rico who ask Godto help them with their financial problems, roughly translated "help yourself and God will help you".

JeremyG

on Aug 04, 2007

Everyone keeps dodging my points by talking about "I like rice & beans" or "we have t compete in the global market". The REAL fact is that the lack of a minimum wage that is sufficient for a person to support themselves is a sign of how much America is NOT as strong as it used to be.....not the place everyone wants to move to....not the place that is looked to as an example of freedom and opportunity.

When speaking of global economy, those factors will guarantee the weakening of America in the long term, much more so than a short-term problem like factory workers.

A country who has the strongest military and is the shining example of supporting and protecting their people, is revered by all. A country with a strongest military and allows for an ongoing "class-divide" is sure to sink into being hated.

danielost

on Aug 04, 2007

for an ongoing "class-divide" is sure to sink into being hated.

this is really about greed. those who don't have want everything the do haves have. but they don't want to work for it. i asked gene for 300,000 knowing, 1. that he wouldn't give it to me. despite all of his talk about taking from the rich and giving to the poor. and 2. i wouldn't have accepted it anyways because i don't really care about money.

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