Posts Tagged ‘Minimum Wage Workers’

Minimum wage workers and apartment rent

May 29, 2015

RentNotAffordable

 A survey by the National Low Income Housing Coalition shows that if you work full-time for minimum wage, 40 hours a week and 52 weeks a year, and set aside 30 percent of your income for housing, you can’t afford to rent a moderately priced standard one-room apartment in any state in the USA.  And that goes for states with minimum wages higher than the federal minimum wage.

That doesn’t mean that minimum wage workers have to be homeless.  But they do have to work more than 40 hours a week, or devote more than 30 percent of their incomes to apartment rent, or settle for cheap substandard quarters, or all three.  Most Americans are struggling these days, but some of us are struggling harder than others.

LINKS

Out of Reach 2015: Low Wages and High Rents Lock Renters Out by the National Low Income Housing Coalition.

In No State Can A Minimum Wage Worker Afford a One-Bedroom Apartment by Tyler Durden for Zero Hedge.

In These 21 Countries, a 40-Hour Work Week Still Keeps Families in Poverty by Flavia Krause-Jackson for Bloomberg News.

Why the minimum wage should be $15 an hour

April 15, 2015

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The key economic problem for the USA is that American wages are too low.

American consumer demand is the engine that has driven not only the U.S. economy, but much of the world economy, for the past 60 years.

If people don’t have enough money to buy things, there is no economic incentive to make things.

If there is no economic incentive to make things, the world’s wealth does not increase relative to the population.

If there is no economic incentive to make things, rich people and institutions invest in debt, which in the long run makes the problem worse.

If there is no economic incentive to make things, unemployment increases.

There is an economic theory that says that the way to cure unemployment is to allow wages.

It is true that, in a generally prosperous economy, an individual employer might hire more workers if they were available at a lower wage.  But that wouldn’t work for the economy as a whole because workers are customers.  Without mass prosperity, economic activity is devoted to serving the desires of a tiny economic elite.

One way to wage raises is to raise the minimum wage.  This is good for all working people, not just those earning minimum wage or slightly above.  It pushes up the general wage level and increases the market for goods and services.

And aside from all these other considerations, do we really want to live in a rich nation in which millions of hard-working people are poor?

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Can fast food afford a $15 minimum wage?

April 15, 2015

Answer to the question: Yes.

An individual fast food restaurant manager might not be able to pay $15 an hour minimum wage and still compete with other restaurants paying $7.25 an hour.  But there would be no competitive disadvantage if there was a floor under all wages.

Can a $10 minimum wage end working poverty?

April 15, 2015

Answer to the question: No.

Wall Street bonuses vs. U.S. minimum wages

March 17, 2015

income-inequality-2.0A study by the Institute for Policy Studies indicates that the total amount of bonuses—not salary, but just bonuses—paid to 168,000 employees of Wall Street financial firms in 2014 was more than double the total income of 1 million Americans who worked full time at minimum wage.

The $28.5 billion paid in bonuses would be more than enough to raise wages of tens of millions of American workers to $15 an hour, the IPI said.

The function of Wall Street investment banks is to find worthwhile companies and provide them with the capital they need to thrive and grow.  Doing this job well would be important, but most Wall Street activity is devoted to repackaging existing investments and selling them.   A recent study says that only a quarter of Wall Street revenue comes from investment in the real economy.

So arguably the 1 million minimum-wage workers create more value than the wealthy Wall Streeters.  At least they don’t create speculative bubbles that crash the economy.

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