How do people survive on minimum wage?

[Texanmike]

Funny you should mention the minimum wage rate in the late 60s when it was at it's peak in purchasing power, it's been in decline ever since.

Again... does the problem with a 30 year old parent of 3 earning minimum wage sit with the government, business, or the person earning it?? Do you think minimum wage is meant for comfortable living??

Yeah, nobody wakes up one day and says "I think I'm going to become a career cashier at McDonald's"... At least, I hope they don't.

Actually, contrary to popular belief working at McDonald's is not a bad career move. It all depends on how motivated you are. If you go into McDonald's and get in the manager in training program you can move up and out of a store in less than 8 years. I've got a friend that did it. Now (after like 15 years with McD's) has a bachelor's degree but was able to move out of the store without a degree. Once she moved out of the store she was making close to $80k/year. The thing is you have to be motivated. She did think "I want a career at McDonald's" and she had one. I really hope that nobody thinks "Man, I can make fries for the rest of my life..."

Mike

 

[tjvh]

Yes, it eliminates sweat shop jobs. It eliminates lots of jobs. It is a job eliminator par excellence.

Are you of the opinion that jobs like that are a beneficial presence in a developed country?

Somebody's got to flip the burgers.

That doesn't mean they need to be subsidized for flipping them. Flipping burgers is what responsible young people do when they are going to school to make something better of themselves. It isn't a career option, unless of course if you are irresponsible.

 

[occupied]

No. It's to share housing and utilities, buy food they can afford and take the bus. If you make people comfortable in minimum wage jobs, they have no incentive to move beyond minimum wage.
Minimum wage in 1967 was $1.25. Bet your ass, I did what I had to to earn more. In the mean time, my desire for porterhouse and imported beer suffered, but I never went hungry.

Funny you should mention the minimum wage rate in the late 60s when it was at it's peak in purchasing power, it's been in decline ever since.

And a new Chevy cost 2 grand. What exactly makes a car cost 10 times that today?
Primarily labor costs including lifetime benefits and extraordinary pension plans. Big Labor has screwed itself.
Your purchasing power would be just fine, probably in better shape, if corporations were receiving productivity for their labor dollar.

Are labor costs the only driver of inflation? Why should wages continue to stagnate and there be any truth to your statement?

 

[buckeye45_73]

Funny you should mention the minimum wage rate in the late 60s when it was at it's peak in purchasing power, it's been in decline ever since.

And a new Chevy cost 2 grand. What exactly makes a car cost 10 times that today?
Primarily labor costs including lifetime benefits and extraordinary pension plans. Big Labor has screwed itself.
Your purchasing power would be just fine, probably in better shape, if corporations were receiving productivity for their labor dollar.

Are labor costs the only driver of inflation? Why should wages continue to stagnate and there be any truth to your statement?

They are by far the biggest. I would say regulation is pretty high as well. For example to build a car, labor is number one, what about materials, well what drives up the cost of those? Labor costs and regulations. Some regulations are ok, most suck and are for nutty environmental wahoos

 

[Texanmike]

Funny you should mention the minimum wage rate in the late 60s when it was at it's peak in purchasing power, it's been in decline ever since.

And a new Chevy cost 2 grand. What exactly makes a car cost 10 times that today?
Primarily labor costs including lifetime benefits and extraordinary pension plans. Big Labor has screwed itself.
Your purchasing power would be just fine, probably in better shape, if corporations were receiving productivity for their labor dollar.

Are labor costs the only driver of inflation? Why should wages continue to stagnate and there be any truth to your statement?

So what you're saying is that we need infinite inflation in order to drive minimum wage up? Are you suggesting mandatory wage increases based on the cost of living index? What should minimum wage be? I've asked several times and never get an answer.

Mike

 

[flacaltenn]

If only they worked two jobs and got roommates and denied themselves modern conveniences, they could save the thousands of dollars needed to pay for higher education and buy an additional 6 hours per day with which to attend class and study! Then with hat degree, they would bar guaranteed a job that paid them enough to raise a family! It is the American dream. It builds character. Everyone should try it.

It is all so simple.

GED == virtually free...

Community College 2yr Assoc degree == $36/credithour == $120/class + used books.

 

[JoeNormal]

They don't, they can't, I've been saying that for years, more than 75% of those working for minimum wage are adults and minimum wage currently has the lowest spending power in history. In the richest country in the world, the poorest worker should make a living wage.

What is a 'living wage'? Given that if a business increases what it pays its workers, it generally has to increase the price to its customers... therefore the cost of living goes up, which means the 'living wage' is no longer a 'living wage' which means it needs to be increased... which leads to increased prices to customers, which leads to an increase in the cost of living, which leads to an increase in the 'living wage', which leads to.... I think you get where I'm going with this. There is no simple answer... and people really should recognize that and stop expecting simple answers.

What you've described here is known as a positive feedback loop in science and engineering. However, given that only a small percentage of our economy revolves around minimum wage, the effects on price would be minimal.

 

[flacaltenn]

What is "personal responsibility" to a low wage earner? The decision to pay the electric bill rather than buy food or pay the car insurance?

No, it would be making the sacrifice and exercising the self discipline required to improve their position. There's no magic involved. It's just not that complicated.

A low wage is not a death sentence. It is a temporary condition that most of us have experienced. We just chose to do something about it, rather than waiting for someone else to do it FOR us.

.

Again. Arrogance and bullshit.

A low wage USED to be temporary. Things have changed.

They certainly have.. There are no shovel or consumer item factories anymore for high school drop-outs. No lower wage factory jobs. Not even the services have many openings for unskilled, uneducated workers..

That is gonna be the norm... We better start talking to our kids and focus our attention on ACTING like the world's leader in technology and innovation.. Because America no longer exists on her own...

 

[occupied]

And a new Chevy cost 2 grand. What exactly makes a car cost 10 times that today?
Primarily labor costs including lifetime benefits and extraordinary pension plans. Big Labor has screwed itself.
Your purchasing power would be just fine, probably in better shape, if corporations were receiving productivity for their labor dollar.

Are labor costs the only driver of inflation? Why should wages continue to stagnate and there be any truth to your statement?

So what you're saying is that we need infinite inflation in order to drive minimum wage up? Are you suggesting mandatory wage increases based on the cost of living index? What should minimum wage be? I've asked several times and never get an answer.

Mike

All I was saying in that particular statement was that if labor was the main driving factor behind inflation then wages would have kept pace with inflation rather than stagnating.

 

[Skull Pilot]

---(They don't they just exist after 3 years they become zombies)----

Article> One of my clients recently reported getting a job at a fast-food restaurant. Since she's been unemployed and desperately looking for work for nearly a year, I was thrilled for her. She was very excited that she'll be making $7.50 an hour -– a whole quarter more than minimum wage.



After she left my office, I got out a calculator. I've never worked for minimum wage, so I didn't know exactly how much -- or how little -- money that is.



Assuming 80 hours per pay period, my client will be bringing home around $462 every two weeks. That's with no health insurance or retirement contributions.



If I brought home $924 a month, would I even be able to survive? I decided to find out.

read more How do people survive on minimum wage?- MSN Money

Work 2 jobs.

 

[M14 Shooter]

A large proportion of those makig minimum wage are kids living at home or students or both. Another large portion are those working a 2nd job.

 

[Texanmike]

They don't, they can't, I've been saying that for years, more than 75% of those working for minimum wage are adults and minimum wage currently has the lowest spending power in history. In the richest country in the world, the poorest worker should make a living wage.

What is a 'living wage'? Given that if a business increases what it pays its workers, it generally has to increase the price to its customers... therefore the cost of living goes up, which means the 'living wage' is no longer a 'living wage' which means it needs to be increased... which leads to increased prices to customers, which leads to an increase in the cost of living, which leads to an increase in the 'living wage', which leads to.... I think you get where I'm going with this. There is no simple answer... and people really should recognize that and stop expecting simple answers.

What you've described here is known as a positive feedback loop in science and engineering. However, given that only a small percentage of our economy revolves around minimum wage, the effects on price would be minimal.

OK. I'll try asking you. What should minimum wage be?

Mike

 

[flacaltenn]

Funny you should mention the minimum wage rate in the late 60s when it was at it's peak in purchasing power, it's been in decline ever since.

And a new Chevy cost 2 grand. What exactly makes a car cost 10 times that today?
Primarily labor costs including lifetime benefits and extraordinary pension plans. Big Labor has screwed itself.
Your purchasing power would be just fine, probably in better shape, if corporations were receiving productivity for their labor dollar.

Are labor costs the only driver of inflation? Why should wages continue to stagnate and there be any truth to your statement?

America is trying to survive on Service jobs.. The deal with Service businesses is that they are 10 times more capital intensive.. To double the jobs in a FACTORY business. You build ONE NEW factory.. To double the jobs in a service business, you need perhaps 50 new franchises. With all the real estate, compliance, furnishings to go with them..

Service expansion is wasteful of capital and resources.. Services ONLY have a local market. They must replicate by market area. FACTORIES serve the world from one location... ALL OF THIS expensive service expansion DRIVES WAGES DOWN....

It's NOT as simple as you blaming inflation.. Other more important factors are at play...

These diffs are soooo clear and yet the new econ books haven't been written. And NO WHERE is this important diff being discussed in the MSM or politics..

 

[Katzndogz]

Once mimimum wage got to be high enough so that people were expected to survive on it for their lifetimes, raise their families on it, retire as a minimum wage worker, there was no reason to hire teens who act like teenagers until they are incentivized to move on. It's one of the reasons teens can't get a job today. If you HAVE to pay $7.00 an hour to someone, would you hire a teenager who was looking for their first job or an adult with a few years of work experience.

How has this been solved? Really look at the solutions that have been schemed up. Teens "volunteer" they become interns and work for free so that they can establish some kind of work history. In some industries it is almost impossile to get a job without several years of unpaid labor. A teen ager can't get a job flipping burgers for minimum wage, those are held by adults with children at home. But they can work for free IF they win the work for no pay lottery. So can retirees! Jobs that paid at one time now look for unpaid volunteers so that people can be "busy" in retirement years.

 

[The T]

What is a 'living wage'? Given that if a business increases what it pays its workers, it generally has to increase the price to its customers... therefore the cost of living goes up, which means the 'living wage' is no longer a 'living wage' which means it needs to be increased... which leads to increased prices to customers, which leads to an increase in the cost of living, which leads to an increase in the 'living wage', which leads to.... I think you get where I'm going with this. There is no simple answer... and people really should recognize that and stop expecting simple answers.

What you've described here is known as a positive feedback loop in science and engineering. However, given that only a small percentage of our economy revolves around minimum wage, the effects on price would be minimal.

OK. I'll try asking you. What should minimum wage be?

Mike

$100.00 an hour sounds about right...(as long as the MARKET can sustain it)

 

[Texanmike]

Are labor costs the only driver of inflation? Why should wages continue to stagnate and there be any truth to your statement?

So what you're saying is that we need infinite inflation in order to drive minimum wage up? Are you suggesting mandatory wage increases based on the cost of living index? What should minimum wage be? I've asked several times and never get an answer.

Mike

All I was saying in that particular statement was that if labor was the main driving factor behind inflation then wages would have kept pace with inflation rather than stagnating.

There is a lot to go into figuring out what drives inflation, of course. But don't assume that wages haven't kept up with inflation. If a service were necessary but would not demand a wage commiserate with minimum wage then the fact that it has not risen does not mean that wages haven't risen.

Also you can't look at one year or even 2 or 3 and determine that because wages haven't risen at the same rate as inflation that labor costs aren't a driving factor in inflation. We have done some things in the last 5 years to throw the cause/effect out of wack; namely printing money like it is going out of style.

BTW. I keep asking this question and nobody ever responds to me. What should minimum wage be?

Mike

 

[FJO]

How??

Free-loading on food stamps.

 

[Katzndogz]

If we had a minimum wage of $10.00 an hour you would just have fewer people working to make $10.00 an hour.

You would also have many more part time workers.

 

[grunt11b]

---(They don't they just exist after 3 years they become zombies)----

Article> One of my clients recently reported getting a job at a fast-food restaurant. Since she's been unemployed and desperately looking for work for nearly a year, I was thrilled for her. She was very excited that she'll be making $7.50 an hour -– a whole quarter more than minimum wage.



After she left my office, I got out a calculator. I've never worked for minimum wage, so I didn't know exactly how much -- or how little -- money that is.



Assuming 80 hours per pay period, my client will be bringing home around $462 every two weeks. That's with no health insurance or retirement contributions.



If I brought home $924 a month, would I even be able to survive? I decided to find out.

read more How do people survive on minimum wage?- MSN Money

They get more than minimum wage, people making that qualify for food stamps,social services, free medical care "Co-pay free with a state card along with medicaid" and a multitude of other services. Total yearly compensation has them actually in the bracket of someone making about $35,000, which is why I dont feel one damn bit sorry for them.

 

[occupied]

Once mimimum wage got to be high enough so that people were expected to survive on it for their lifetimes, raise their families on it, retire as a minimum wage worker, there was no reason to hire teens who act like teenagers until they are incentivized to move on. It's one of the reasons teens can't get a job today. If you HAVE to pay $7.00 an hour to someone, would you hire a teenager who was looking for their first job or an adult with a few years of work experience.

How has this been solved? Really look at the solutions that have been schemed up. Teens "volunteer" they become interns and work for free so that they can establish some kind of work history. In some industries it is almost impossile to get a job without several years of unpaid labor. A teen ager can't get a job flipping burgers for minimum wage, those are held by adults with children at home. But they can work for free IF they win the work for no pay lottery. So can retirees! Jobs that paid at one time now look for unpaid volunteers so that people can be "busy" in retirement years.

The job market has never sucked more in my lifetime than it does right now. The ladder to success is choked with people camped out in their position trying to hold on to what little they have. A glut of motivated, desperate workers is the perfect time to reverse any wins labor may have had in the last 50 years and train a new generation to settle for less than their parents had.