Monday, June 6, 2016

Wage Inequality: A wage you can

The current Federal minimum wage is $7.25 an hour, there are several states that have a state set minimum wage that is higher than what the current (7/2009) federal minimum wage, and it hasn't changed since july of 2009. The Federal Government says that is a wage that people can live off of. I say that it is a wage that some people can survive on, however calling it a livable wage is laughable. Lets look at some basic math to see how much a month a person will be taking home from a 40 hour work week.

So a person making $7.25 an hour at 40 hours a week will get $290 before taxes. Now estimate that about $45 is taken out for income taxes and that person now has $245 roughly for take home for just one week of pay. if they were getting paid every 2 weeks the estimated amount would be $490 for the take home, and if they were only getting paid once a month it would be $980 for the month. So we have seen what the the average check for someone making the current Federal Minimum Wage. Now lets take a look at the average cost of living for a single person with one child.

This is what KayCircle.com states as the average cost of living as of January 17th of 2010:

"The average cost of living in 2010 for a family of 3 is 2830 per month or $33960 per year. This includes the cost of food, housing, gas, utilities, and cars. The average cost of living may go up or down at any time due to changes in the economy and other factors such as inflation."

Now having already stated that at $7.25 an hour for the full month the estimated take home would be about $980 for the month. So when you take into account the cost of child care which Urban.org estimates to be about $286 or about 9% of earnings, and the cost of Rent, Food and Utilities*. $980 a month doesn't go that far or cover that much.

Now Some some States have decided to have their own minimum wage that is higher then the Federal minimum wage. For example the State of Washington's minimum wage, as reported on laborlawcenter.com, is $8.55 an hour that is $1.30 more then the current federal minimum wage. The District of Columbia's current minimum wage is $8.00 an hour 75 cents more then the current federal mandated wage.

It is The belief of The SkyPilot Project that the minimum livable wage should be 12 to 15 dollars an hour. It is a belief of The SkyPilot Project that 90 to 95 percent of those earning the minimum wage are Working Adults, not teens trying to earn a little extra cash. Which is why The SkyPilot Project believes that the minimum wage should set at a more livable wage, or even have a split minimum wage, with the cut off being 18 years old.

What are you thoughts? Do you think the minimum wage is just fine? or do you think it should be higher? Leave your thoughts in the comments and begin the Conversation, or you could leave your thoughts on the Facebook Fan Page!

*The SkyPilot Project defines Utilities as Cable, Phone (Landline or Wireless), Power, Heat, and Internet service. The SkyPilot Project defines both Cable and Internet service as a utility because they have become so ingrained as a must have service, which in this digital age has become true. You have to have Internet access to look for good paying work, to apply for work, or even to apply for state and federal assistance in most states. To Get even the most basic channels on TV, you have to have cable, because the analog broadcasting towers are no longer active as of June 2009. I Include both the traditional phone service and Cell (Wireless) phone service as a utility because there are more wireless phones being used as a main line then the traditional phone service. So Wireless phones have also become a utility bill.