Minimum wage and what it does. Is it everything that it is said to be? Lets put a pencil to it. So lets establish the boundries. 1. The federal limit is $7.25, but each state can modify that number. In Michigan it is $7.40. For this Observation I will use the Michigan minimum wage, because it's home. What is the minimum wage? 2. For this observation we will use a 40 hour week, every week. Then we will deduct the payroll taxes. Gross wages for the week are $296.00 and after taxes we will bring home $230.31. For a four week month we will take home $921.24. Yearly gross pay is $15,392. Yearly take home pay is $11,976.12. Yearly figures are based on 52 weeks a year. Free Online Paycheck Calculator for Calculating Net Take Home Pay 3. For this observation we are only focusing on the basics. - We will use rent, as a minimum wage earner is not likely to own a home. For this particular observation we will use Wayne county Michigan. We will rent a one bedroom appartment. For the month this expense is $610.00 per month. Everything included but the telephone, tv, and internet. Average Apartment Rent Reference. Compare reviews & ratings. (go to page 310) - Phone is the next expense. we have to include this because you cannot maintain a job without a phone. There are cell phones and land lines, for this observation we will use the land line as it is cheaper. Charter communications offers land line for $29.99 a month. Charter Deals - Charter Cable TV Internet Phone Package Deals 4. Transportation to and from work is the next issue. the average travel time in Michigan is 23.9 minutes. United States and States - R0801. Mean Travel Time to Work - Now how do we get there, for this observation we will use a bus as owning a car is impossible to maintain on a minimum wage job. The monthly bus ticket will cost $47.00 a month. Detroit Department of Transportation Fares | City of Detroit | www.detroitmi.gov 5. Clothing is an estimated figure and will differ from person to person, and clothing does not fit into a monthly budget. We will add this later. 6. Food is also an estimated figure and will differ from person to person. We will look at this later. Estimate of $75.00 7. Personal hygene expenses can be done by month and will also differ from person to person. We will look at this later. Estimate $75.00 (toilet paper,toothpaste, soap, shampoo, dish soap, deodorant, and possibly other expenses). Lets total it up now: Monthly take home $921.24 minus the rent - $610.00 minus the Phone - $29.99 minus the bus fare - $47.00 total left $234.25 Minus food, and personal hygene per month - $150.00 (probably alot more) total left $ 84.25 Expenses not included : Medical insurance, and Renters insurance If the government cuts assistance a person making minimum wage will have to live like this. Where do they save money? How hard will it be to cover the basics? Minimum wage is a poverty wage and there are some who wish to see the minimum wage done away with. The point of all of this is...is that the American dream is non existant when you reach this low on the ladder. When you are unemployed and a minimum wage job is offered, is it really a help? of coarse it is, it's a job. In reality though looking at the job in question did it really help? The rallying cry of where are the jobs, and create more jobs is not going to fix our problem. We need to rally to the cry of "Where are the careers?" where are the jobs that allow the worker to have a living wage and raise their families? Minimum wage does not allow for that. The question is how realistic is minimum wage in providing the solution to those who don't have a job. Once they get their minimum wage job, is it considered a successful fix?