Living Wages Introduction Over the past decade, politicians have sought to reform the national poverty levels by lobbying for what is frequently referred to as a living wage. Living wages, on the most elementary level, are the absolute minimum a person must make per year or per hour to stay above the federal poverty level. While the number of people that receive living wages is still small, Wood (2002) suggests that this is a trend that is gaining momentum across the United States because it may help reduce employee turnover and increase worker productivity. Living wages became a hot topic in 1994 when Baltimore, Maryland officials adopted a policy that required all companies that received public funds or worked on government contracts to pay a wage that would sufficiently provide for the basic needs of the people they employed. Living wages differ among cities since it is calculated by the cost of living in that area. The cost of living is based on available childcare, healthcare, housing, food, and transportation costs. According to www.responsiblewealth.org, (2005) in 2000, the living wage amounted to $17,050 a year for a family of four, or $8.20 per hour for a full-time, year around worker. Most studies show that the economical benefits of living wages, such as worker productivity and reduced turnover, are increasing, and I must agree with Neumark (2003) who explains that living wages overall can reduce poverty, and living wage laws are effective, but there is an obvious tradeoff that occurs with wage increases, specifically employment reductions for individuals with little or no skills. Issues such as these will be discussed in greater detail in this paper. Reductions in Poverty Neumark (200... ... middle of paper ... ...g Wage Effects: New and Improved Evidence," Economic Development Quarterly 19, no. 1 (2005). http://www.sagepub.com. ---, "Detecting Effects of Living Wage Laws," Economic Development Quarterly 42, no. 4, (2003). Malanga, Steven. "How the "Living Wage" Sneaks Socialism into Cities," City Journal 13, no. 1 (2003). http://www.city-journal.org Responsible Wealth, " Living Wage: Frequently Asked Questions about he Living Wage," http://www.responsiblewealth.org/living_wage/quanda.html Stephens, Tom, "Living Up to the Living Wage," The National Lawyers Guild, Michigan House of Representative Committee Hearing, February 2003. http://www.sugarlaw.org/pubs/2003_Testimony_Living_Wage_Mich.pdf Wood, Daniel. " Living Wage' laws gain momentum across US," The Christian Science Monitor March 15, 2002
Poverty continues to grow in America. The average minimum wage in the United States is $7.35 an hour- far too low in today’s society. Key expenses, for example, gas and housing prices, have gone up significantly since the minimum wage was last changed in 2007 (Wagner 52). The laws creating the minimum wage were intended to improve the standard of living and decrease poverty. Raising minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Millions of hard-working Americans are below the poverty line and need an increase in pay. Minimum wage must be raised because it will diminish poverty and assist the working class to support their families.
Ramisch, Claudia. ?Living on Minimum Wage.? ENGL 1302H Class Presentation, Kentucky Wesleyan College, Owensboro, KY. 13 March 2006.
Poverty and low wages have been a problem ever since money became the only thing that people began to care about. In Nickel and Dimed: On (Not) Getting By in America by Barbara Ehrenreich, she presents the question, “How does anyone live on the wages available to the unskilled?” This question is what started her experiment of living like a low wage worker in America. Ehrenreich ends up going to Key West, Portland, and Minneapolis to see how low wage work was dealt with in different states. With this experiment she developed her main argument which was that people working at low wages can’t live life in comfort because of how little they make monthly and that the economic system is to blame.
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
Imagine working under poor conditions for over 40 hours a week to afford basic human necessities only to remain nothing more than a cog in a corporal machine seen unworthy of livable wages. While this may seem unrealistic, it proves as reality for many lower class Americans. Minimum wage has seen a drastic decline in relation to the inflation of living costs, an issue addressed in Lew Prince’s, “The American Dream Needs a Fair Minimum Wage”. In the article, Prince, a business owner, states, “... in 1979, the minimum wage was $2.90 -- that would be $9.50, adjusted for inflation in 2014 dollars”. Even with this information, many americans above the poverty level line argue against an increase in wages. Although opinions often
Should we have the minimum wage rise? Nowadays, many people argue that we should increase the minimum wage because we haven’t had an increase since 2009. People who are living on the minimum wage struggle a lot raising their families. (Webster) Minimum wage means the lowest daily or monthly remuneration that employers may legally pay to workers. On the other hand living wage means the minimum amount that a worker must earn to afford his/her basic necessities, without public or private assistance
The living wage movement is an economic reform movement that has become one of the most important public policy issues that has come up within the last 10 years. Although there is no single definition, it is often defined as an hourly salary that allows working families of four to have an income that is above the federal poverty line. This means that the livable wage laws often stipulate that hourly wages should be two to three times above the federal Mininum wage. However, unlike the Mininum wage, the living wage has so far only been enacted on the county and city level. Cities and counties enforce the living wage for companies that have contracts with their respective cities and counties, receive subsidies from their cities or counties, other economic benefits cities and counties provide to companies, and in some cases a livable wage is required for the tourist areas of the particular city. For cities and local governments, the livable wage is perceived as a measure to increase the welfare of the poor. However, like everything in life the livable wage creates its on costs that along with its benefits of increased wage to some low income earners.
Living in a nice home, a good neighborhood, and having nice cars is what most people think of as part of the American Dream. How are you supposed to get there though? Unless you're going to win the lottery you’re going to have to work in some form. Achieving the American Dream while earning minimum wage may take a person longer but it is still attainable. Through higher education or hard work individuals can achieve a higher standard of living.
A federal minimum wage was first set in 1938. The first minimum wage was just 25 cents an hour in 1938. Can you imagine surviving off of 25 cents an hour? Now just over 70 years later the federal minimum wage is now 7.25. The question at hand is the federal minimum wage enough to meet the minimum requirement for a good, happy and healthy life? Some states and cities say no. While a select few states and cities have mirrored the federal minimum wage of 7.25, some states have placed their state or city/county minimum wage marginally higher than the federal minimum wage. So why would some states prefer to have a higher level than required by the federal minimum wage when some state have decided to match or even go below the federal minimum wage level. The answer to this question lies within each state city and county and how they perceive the cost of living in the presiding area. Minimum wage needs a makeover in America despite some of the negative effects that may come along with it. This paper will explore the reasons behind federal and state minimum wages and why some of them differ among states counties and cities across America.
The minimum wage today has a lot of issues; some people say it is not enough to live comfortably. Many agree that there needs to be an increase in minimum wages and by doing that it can help with our issues of poverty. Statistics show that a worker who is full time and earning minimum wage makes only $15,080 a year, which is under the federal poverty line for a family of two. (Gitis, 2013) The problem with that is $15,080 is not a sufficient amount that a person can live and grow on. “A family of two can consist of a mother and son or daughter, father and son or ...
Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
A while ago I was told by my parents that I got a call from (my now boss), Donald Makepeace, asking if I was still interested in a job. We played phone tag for the longest tag, but finally I was hired at the local Dairy Queen. My parents originally said that I was supposed to contribute some money to help pay for insurance, gas ,and ect. After, seeing how much money I brought back week after week, they ignored that request. The truth of the matter is, it’s hard to live on a minimum wage job. In fact, many individuals must have at least two jobs to keep the bills meet. So, President Obama is trying to get Congress to pass an increase in the minimum wage. However, Congress refuses to raise the minimum wage. I agree with Congress, that we should not raise the minimum wage because these jobs are mainly for high school students and more people wouldn’t be able to hire people.
The low income workers who receive public assistance will seem to make more in wages but will lose money from what public assistance they were also collecting causing them to request working less hours to maintain what they would have received from public assistance. A worker with children who is paid $7.25 an hour will have a higher income than if they were paid a higher wage, but because at the higher wage they will lose the public assistance such as food stamps, welfare, and other benefits because of making the higher wages. This is causing people to request to work less hours so they can receive their public assistance benefits. Who seems to gain the most from a living wage requirement is the public employee who is in a union as their involvement with the union is a form of protection in the job market. The living wage laws can and will have negative effects as they can in certain job markets reduce employment opportunities for the low skilled workers or the workers without a higher education. Some employers will be forced to eliminate some job opportunities because they will not be able to produce enough profit to be able to or justify to having to pay the higher wage. The hardest hit will be the mom & pop or non-chain stores as they do not have the backing or income to support
On the 1st of April 1999, the National Minimum Wage (NMW) was introduced in the UK at a rate of £3.60 per hour for workers aged 21 and older, and at a rate of £3.00 for workers aged 18-21. Since then, it has grown steadily to reach a rate of £6.31 per hour today. The NMW is “the minimum pay per hour that almost all workers are entitled to by law” (www.gov.uk). In 1999, 1.9 million people were paid less than £3.60, sometimes even below the Living Wage due to the dismantling of unions by the Thatcher government. The idea of a minimum wage then came up, supported by the Labour Party, in order to reduce the increasing poverty and to prevent low wages workers from being exploited by their employers. The Conservative Party, supported by employers, was strongly opposed to this project, arguing that a minimum wage will damage the economy and create poverty due to higher unemployment levels. So, how does the NMW really affect poverty and employment in the UK?
The national living wage was introduced by the government as a new rate per hour voluntary set by employers, applicable to individuals aged 25 and older, which is calculated according to the basic cost of living in the UK and is updated annually. (Gov.uk, 2016) The minimum wage rate per hour in the UK is at 6.70 pounds p/h for those aged 21-24 while individuals over the age of 25 get paid around 7.20 pounds p/h, while the living wage is set at 8.25 pounds p/h across the UK with the rate in London being at 9.40 pounds p/h due to the higher cost of living. (National Living Wage, 2016) What is certain is that the introduction of the living wage is bound to affect the economy of the UK in one way other. It might as well have an impact on other