Jackinthebox
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- Nov 30, 2014
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On this page, we will itemize a sample budget for a single person in order to analyze what a fair standard would be for a minimum-wage worker. It is our position that a person working eight hours a day, five days a week, at any job, should be able to support themselves to a minimum basic standard of living. This practical wage is necessary in order to elevate the class of working poor to contributing members of society. Working for anything less than what is needed to subsist on independently, is nothing short of slavery.
All figures are based on national averages, for a Federal standard.
RENT ------------------------------$1000
BASIC UTILITIES --------------$200
ADVANCED UTILITIES ------$150
FOOD ------------------------------$300
NON-FOOD GROCERY -----$50
CLOTHING -----------------------$75
TRANSPORTATION ----------$500
HEALTHCARE -----------------$350
MISCELLANEOUS -----------$400
------------------------------------------------------
Average Basic Monthly Expenses $3,025
A full-time job at 40 hours per week is 173.2 hours per month calculating 4.33 weeks in each month. To find a reasonable minimum wage, we divide the average basic monthly expenses figure, by the number of hours worked. For the average American worker to support themselves without government assistance or by borrowing beyond their means, that worker must earn...
$17.47 per hour
Of course, that figure must be after all taxes and contributions are taken, or that anyone earning that amount must be exempt from all such garnishments and liability. A person who cannot even afford to pay their own way, cannot afford to pay taxes. Forcing them to pay taxes that will jeopardize their basic standard of living, is unsound economics and in the long run will only force other taxpayers to subsidize those workers, in turn jeopardizing their own living standard, in a perpetual cycle that we see happening today as more workers descend into deep poverty.
If $17.47 per hour seems unreasonable to you, or just downright impossible, consider a few more facts. There was a time when a grocery clerk, or a department store salesperson could actually support themselves on what they earned. That is not so today.
Using data by the U.S. BLS, the average productivity per American worker has increased 400% since 1950. One way to look at that is that it should only take one-quarter the work hours, or 11 hours per week, to afford the same standard of living as a worker in 1950 (or our standard of living should be 4 times higher). Is that the case? Obviously not. Someone is profiting, it’s just not the average American worker. -Source
Based on consumption growth since 1968, the minimum wage today would have to be $25.05 to represent the same share of the country's total consumption. Based on national income growth, the minimum wage should be $22.08. Based on personal income growth, it should be $21.16. -Source
After adjusting for inflation, minimum wage workers today are paid about 26 percent less than they were in 1974.
At the top 1 percent of the American income distribution, average incomes rose 194 percent between 1974 and 2011. Had U.S. minimum wages risen at the same pace as U.S. maximum wages, the minimum wage would now be $26.96 an hour. -Source
Here is a detailed description of how we arrived at our sample budget figures:
Read more: Analyzing a Practical Minimum Wage Minimum Wage Workers Union of America
All figures are based on national averages, for a Federal standard.
RENT ------------------------------$1000
BASIC UTILITIES --------------$200
ADVANCED UTILITIES ------$150
FOOD ------------------------------$300
NON-FOOD GROCERY -----$50
CLOTHING -----------------------$75
TRANSPORTATION ----------$500
HEALTHCARE -----------------$350
MISCELLANEOUS -----------$400
------------------------------------------------------
Average Basic Monthly Expenses $3,025
A full-time job at 40 hours per week is 173.2 hours per month calculating 4.33 weeks in each month. To find a reasonable minimum wage, we divide the average basic monthly expenses figure, by the number of hours worked. For the average American worker to support themselves without government assistance or by borrowing beyond their means, that worker must earn...
$17.47 per hour
Of course, that figure must be after all taxes and contributions are taken, or that anyone earning that amount must be exempt from all such garnishments and liability. A person who cannot even afford to pay their own way, cannot afford to pay taxes. Forcing them to pay taxes that will jeopardize their basic standard of living, is unsound economics and in the long run will only force other taxpayers to subsidize those workers, in turn jeopardizing their own living standard, in a perpetual cycle that we see happening today as more workers descend into deep poverty.
If $17.47 per hour seems unreasonable to you, or just downright impossible, consider a few more facts. There was a time when a grocery clerk, or a department store salesperson could actually support themselves on what they earned. That is not so today.
Using data by the U.S. BLS, the average productivity per American worker has increased 400% since 1950. One way to look at that is that it should only take one-quarter the work hours, or 11 hours per week, to afford the same standard of living as a worker in 1950 (or our standard of living should be 4 times higher). Is that the case? Obviously not. Someone is profiting, it’s just not the average American worker. -Source
Based on consumption growth since 1968, the minimum wage today would have to be $25.05 to represent the same share of the country's total consumption. Based on national income growth, the minimum wage should be $22.08. Based on personal income growth, it should be $21.16. -Source
After adjusting for inflation, minimum wage workers today are paid about 26 percent less than they were in 1974.
At the top 1 percent of the American income distribution, average incomes rose 194 percent between 1974 and 2011. Had U.S. minimum wages risen at the same pace as U.S. maximum wages, the minimum wage would now be $26.96 an hour. -Source
Here is a detailed description of how we arrived at our sample budget figures:
Read more: Analyzing a Practical Minimum Wage Minimum Wage Workers Union of America