Early last year, the Oprah show featured families living on minimum wage, who were barely able to support themselves. The special report talked to people with full time jobs, and found that they were unable to save, and were barely able to get by. The report was compelling, and showed the disparity in income in the United States. Working hard, and not earning enough to support a home, is a reality for close to 30 million Americans.
The federal minimum wage, currently $5.85/hr, is set to increase over the next two years to $6.55/hr next year (2008), and to $7.25/hr by 2009.
Let's take a look at this in monthy income terms. Today, in 2007-a person working full time (40 hours/week), at minimum wage will make $936/month before taxes. In 2008, the minimum wage full time worker will earn $1,048.00 per month. In 2009, $1,160.00 per month. Some states actually pay slightly more per hour, but considering the current fedreal guidelines, it is easy to see how ever increasing housing prices can easily force people into a tough financial situation.
Yesterday's post pointed out how some homeowners may find themselves homeless within a month of being behind on a mortgage. Tenants may find themselves evicted within 30-60 days as well. Considering reports that 70% of America's working class are one paycheck away from being homeless, there should be concern for the effects of a minimum wage increase that still won't afford most workers housing security.
» Minimum Wage Goes Up.... So What from OfficeStuffer
So what. Honestly, how much of a difference will it make. It's still not a living wage. There's been a hearty amount of whining going on by business owners about the wage increase. Not quite as much in my state... [Read More]
Tracked on: July 25, 2007 7:28 PM | Permalink to Trackback