How do people survive on minimum wage?

[JoeNormal]

So what would you do with someone who is making... $10/hr? They are making above minimum wage right now (which means that they have 1/3 more buying power than the purchasing power of someone making minimum wage). Is their standard of living of no concern? Even the guy making $12/hr.. he had 60% more purchasing power than the very bottom of the totem pole... now he makes a mere 20% more than that. He's worked his way up a little bit and crawled out of the bare minimum. He's right back where he started though.

Mike

No, this gets back to what I said originally. Raising the minimum wage would have negligible effect on prices. This issue comes up occasionally, the biggest fury was when there was a debate about raising the wage of produce workers to the point where Americans would do those jobs. I think they calculated that doubling the wage of these workers would add about 2 cents to the price of a head of lettuce.

Maybe there'd be some resentment from the guys who are making $10/hour already. I've found myself in these positions before but somehow got over it.

Do you really think that a person who is making $10/hr now is going to work for $10/hr if that is the minimum wage? Are you not at all concerned about that person? Is the only person you're worried about the guy making minimum wage?

And by the way, eventually prices will catch up with the cost of labor. It might take a little while but if you walk into Mc Donald's and everyone is suddenly making $10/hr I guarantee you that your burger will cost more.

Shift managers make $11/hr (or did a few months ago). Are you telling me that a guy who walks in and applies for a job is going to make 90% of what a sift manager makes? Of course not. You're going to have to give shift managers a raise too. Who's going to put up with the responsibilities of being a shift manager if it is only an extra dollar an hour?

Or lets go back to Jiffy Lube. The first day technician makes about $8/hr right now. As you get certifications and approvals you get pay incentives to do other things that a Jiffy Lube offers. What is the incentive to learn those extras if you have bumped up minimum wage? Either Jiffy Lube has to pay you more or they will suffer a decline in service.

Mike

Mike

If these guys are currently making $10 or $11 per hour, where else are they going to go? The movers and shakers in our economy don't give a shit about them. That shift manager jobs is a carrot to dangle in front of them at best. Even at squalor plus $2, the desire to go further is still there.

 

[occupied]

In a place where government trumps freedom.... in a place where we should never be

That does not even make sense. Trickle down theory suggests that a rising tide raises all boats but it seems in this case that only the yachts are even still afloat and griping about all the capsized vessels in their path. I love a good metaphor.

It only makes no sense to a person who is unconcerned with freedom

Because I achieve more and create (for example) a restaurant that booms and earns me $4MIL a year to my direct pocket, I should then be forced pay a dishwasher something commensurate with what I earn because I am a success?? Sorry Charlie.. A dishwasher does not get bumped from $7 an hour to $70 an hour because I went from $400k a year to $4MIL a year

Don't be ridiculous, I am only remarking that the working class regularly and defenselessly absorb loss in a big way but are too often denied a share in the growth they helped create. Take these two together and our work force is steadily headed downhill economically with debt the only stopgap measure available. Stop this bottom-to-middle wage slide and then talk of removing the bottom.

 

[High_Gravity]

---(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

You could survive but you would either have to have a few room mates in a cheap apartment, still stay with your parents or get a rent subsidized apartment, live on minimum wage ain't fun. I made minimum wage when I worked in McDonalds back in High School and it was fun because all that money was mine, I still lived at home and didn't have to pay bills, rent, car note etc. I always wondered how the adults I worked with survived on that salary.

 

[grunt11b]

That does not even make sense. Trickle down theory suggests that a rising tide raises all boats but it seems in this case that only the yachts are even still afloat and griping about all the capsized vessels in their path. I love a good metaphor.

Reagan created 20,000,000 jobs with his policies of lower taxation and more economic freedom for businesses to grow. Trickle down works, if the government gets the hell out of the way and allows it, which you will never see this administration doing.

Although Obama claimed to be a friend of Reagan...

Somehow I dont feel Reagan would have felt the same about Obama.

 

[DiamondDave]

That does not even make sense. Trickle down theory suggests that a rising tide raises all boats but it seems in this case that only the yachts are even still afloat and griping about all the capsized vessels in their path. I love a good metaphor.

It only makes no sense to a person who is unconcerned with freedom

Because I achieve more and create (for example) a restaurant that booms and earns me $4MIL a year to my direct pocket, I should then be forced pay a dishwasher something commensurate with what I earn because I am a success?? Sorry Charlie.. A dishwasher does not get bumped from $7 an hour to $70 an hour because I went from $400k a year to $4MIL a year

Don't be ridiculous, I am only remarking that the working class regularly and defenselessly absorb loss in a big way but are too often denied a share in the growth they helped create. Take these two together and our work force is steadily headed downhill economically with debt the only stopgap measure available. Stop this bottom-to-middle wage slide and then talk of removing the bottom.

How does a dishwasher or janitor or cashier 'help to create'?

Now if I CHOOSE with my FREEDOM to boost the employees who have given supreme effort with a salary increase, bonus, or share of the profits... that is one thing... to state that even the lowest level of employee must or should increase in earnings because the top of the business is increasing theirs, is ridiculous

 

[Charles_Main]

Minimum wage workers tend to be young. Although workers under age 25 represented only about one-fifth of hourly-paid workers, they made up about half of those paid the Federal minimum wage or less. Among employed teenagers paid by the hour, about 23 percent earned the minimum wage or less, compared with about 3 percent of workers age 25 and over. (See table 1 and table 7.)

Characteristics of Minimum Wage Workers: 2011

Exactly, Because Minimum Wage Jobs are suppose to be Entry Level.

Yet Obama keep touting 4.5 Million Jobs Created, when a Huge Chunk of them are Minimum Wage Jobs.

The Devil is in the Details, as usual.

 

[JoeNormal]

It only makes no sense to a person who is unconcerned with freedom

Because I achieve more and create (for example) a restaurant that booms and earns me $4MIL a year to my direct pocket, I should then be forced pay a dishwasher something commensurate with what I earn because I am a success?? Sorry Charlie.. A dishwasher does not get bumped from $7 an hour to $70 an hour because I went from $400k a year to $4MIL a year

Don't be ridiculous, I am only remarking that the working class regularly and defenselessly absorb loss in a big way but are too often denied a share in the growth they helped create. Take these two together and our work force is steadily headed downhill economically with debt the only stopgap measure available. Stop this bottom-to-middle wage slide and then talk of removing the bottom.

How does a dishwasher or janitor or cashier 'help to create'?

Now if I CHOOSE with my FREEDOM to boost the employees who have given supreme effort with a salary increase, bonus, or share of the profits... that is one thing... to state that even the lowest level of employee must or should increase in earnings because the top of the business is increasing theirs, is ridiculous

Companies will do whatever they can to lower costs and increase profits. Automation is popular yet somehow, you still need those pesky human beings to do a lot of what needs to be done. I think if it takes a human being to do a certain job, that job should pay enough to allow him to survive.

 

[Paulie]

Minimum Wage is one of those populist issues (like flag burning) that the demagogues whip out at election time to stir up the dimwits. I've always assumed they know it will do more harm than good but just don't care. It scores votes for the win.

I don't know about that, minimum wage is a real issue. Government forcing a business to pay a certain amount of money? That's an issue that ought to be dealt with. It's much different from your average wedge issue of abortion or gay marriage.

 

[Againsheila]

The "minimum wage" is too low, I wonder wtf they base it on. The bosses who insist on limiting minimum wage have no "maximum wage," they know that keeping the minimum wage as low as possible makes them richer.

Yep. and there are idiots who support them, making it that much harder on the working people in this country.

My job went to India and I was making only slightly more than minimum. I offered to follow my job, I could live a heck of a lot better in India on $4.00 an hour than I could here on $8.50 an hour. I was told those jobs were for their citizens, our government couldn't care less about our citizens. They even let illegals in to keep our unemployment high and our wages low, just so we don't get any ideas of over stepping ourselves.

And then we have the idiots praising the illegals who have wrecked our economy and sent most of their money home. Many of whom have already returned home now they they wrecked our economy where they can live like kings on the money the stole from us.

Meanwhile, the reps are happy because they've kept labor cheap, the dems are happy because they got illegal votes and the people lose everything. No country can long survive when the majority of it's wealth lies in the hands of a few.

 

[The Rabbi]

Don't be ridiculous, I am only remarking that the working class regularly and defenselessly absorb loss in a big way but are too often denied a share in the growth they helped create. Take these two together and our work force is steadily headed downhill economically with debt the only stopgap measure available. Stop this bottom-to-middle wage slide and then talk of removing the bottom.

How does a dishwasher or janitor or cashier 'help to create'?

Now if I CHOOSE with my FREEDOM to boost the employees who have given supreme effort with a salary increase, bonus, or share of the profits... that is one thing... to state that even the lowest level of employee must or should increase in earnings because the top of the business is increasing theirs, is ridiculous

Companies will do whatever they can to lower costs and increase profits. Automation is popular yet somehow, you still need those pesky human beings to do a lot of what needs to be done. I think if it takes a human being to do a certain job, that job should pay enough to allow him to survive.

Really? Why do you think that? I think people who sit around and post here ought to get a milliondollars a year. I think I ought to be declared King of the U.S and have people bow down to me when I walk.
It's stupid.
People get paid what they are worth. Employers compete for employees as much as employees compete for jobs. Why does anyone want to short circuit that arrangement?

 

[Againsheila]

Minimum Wage is one of those populist issues (like flag burning) that the demagogues whip out at election time to stir up the dimwits. I've always assumed they know it will do more harm than good but just don't care. It scores votes for the win.

I don't know about that, minimum wage is a real issue. Government forcing a business to pay a certain amount of money? That's an issue that ought to be dealt with. It's much different from your average wedge issue of abortion or gay marriage.

Really? Guess we ought to get rid of unions, reinstate child labor and get rid of the 5 day work week as well? Oh and forget OSHA, who cares if the workers are killed on the job, they are a dime a dozen.

 

[Texanmike]

No, this gets back to what I said originally. Raising the minimum wage would have negligible effect on prices. This issue comes up occasionally, the biggest fury was when there was a debate about raising the wage of produce workers to the point where Americans would do those jobs. I think they calculated that doubling the wage of these workers would add about 2 cents to the price of a head of lettuce.

Maybe there'd be some resentment from the guys who are making $10/hour already. I've found myself in these positions before but somehow got over it.

Do you really think that a person who is making $10/hr now is going to work for $10/hr if that is the minimum wage? Are you not at all concerned about that person? Is the only person you're worried about the guy making minimum wage?

And by the way, eventually prices will catch up with the cost of labor. It might take a little while but if you walk into Mc Donald's and everyone is suddenly making $10/hr I guarantee you that your burger will cost more.

Shift managers make $11/hr (or did a few months ago). Are you telling me that a guy who walks in and applies for a job is going to make 90% of what a sift manager makes? Of course not. You're going to have to give shift managers a raise too. Who's going to put up with the responsibilities of being a shift manager if it is only an extra dollar an hour?

Or lets go back to Jiffy Lube. The first day technician makes about $8/hr right now. As you get certifications and approvals you get pay incentives to do other things that a Jiffy Lube offers. What is the incentive to learn those extras if you have bumped up minimum wage? Either Jiffy Lube has to pay you more or they will suffer a decline in service.

Mike

Mike

If these guys are currently making $10 or $11 per hour, where else are they going to go? The movers and shakers in our economy don't give a shit about them. That shift manager jobs is a carrot to dangle in front of them at best. Even at squalor plus $2, the desire to go further is still there.

You are assuming it is worth it to the worker to make $11/hr. The point is that nobody will ever move up to shift manager or learn extra skills if they won't get a raise. Companies will have to raise the wage of people making $11/hr or once they get promoted noone will be there to fill their positions. Alternatively maybe the companies will just never promote them. That would be a good solution.

Mike

 

[Texanmike]

Minimum Wage is one of those populist issues (like flag burning) that the demagogues whip out at election time to stir up the dimwits. I've always assumed they know it will do more harm than good but just don't care. It scores votes for the win.

I don't know about that, minimum wage is a real issue. Government forcing a business to pay a certain amount of money? That's an issue that ought to be dealt with. It's much different from your average wedge issue of abortion or gay marriage.

Really? Guess we ought to get rid of unions, reinstate child labor and get rid of the 5 day work week as well? Oh and forget OSHA, who cares if the workers are killed on the job, they are a dime a dozen.

Yes. You are exactly right.

Mike

 

[The T]

Don't be ridiculous, I am only remarking that the working class regularly and defenselessly absorb loss in a big way but are too often denied a share in the growth they helped create. Take these two together and our work force is steadily headed downhill economically with debt the only stopgap measure available. Stop this bottom-to-middle wage slide and then talk of removing the bottom.

How does a dishwasher or janitor or cashier 'help to create'?

Now if I CHOOSE with my FREEDOM to boost the employees who have given supreme effort with a salary increase, bonus, or share of the profits... that is one thing... to state that even the lowest level of employee must or should increase in earnings because the top of the business is increasing theirs, is ridiculous

Companies will do whatever they can to lower costs and increase profits. Automation is popular yet somehow, you still need those pesky human beings to do a lot of what needs to be done. I think if it takes a human being to do a certain job, that job should pay enough to allow him to survive.

But YET NO ONE forces that person to TAKE the job unless economic circumstances are so DIRE for that individual they have NO CHOICE...

 

[High_Gravity]

The "minimum wage" is too low, I wonder wtf they base it on. The bosses who insist on limiting minimum wage have no "maximum wage," they know that keeping the minimum wage as low as possible makes them richer.

Yep. and there are idiots who support them, making it that much harder on the working people in this country.

My job went to India and I was making only slightly more than minimum. I offered to follow my job, I could live a heck of a lot better in India on $4.00 an hour than I could here on $8.50 an hour. I was told those jobs were for their citizens, our government couldn't care less about our citizens. They even let illegals in to keep our unemployment high and our wages low, just so we don't get any ideas of over stepping ourselves.

And then we have the idiots praising the illegals who have wrecked our economy and sent most of their money home. Many of whom have already returned home now they they wrecked our economy where they can live like kings on the money the stole from us.

Meanwhile, the reps are happy because they've kept labor cheap, the dems are happy because they got illegal votes and the people lose everything. No country can long survive when the majority of it's wealth lies in the hands of a few.

You offered to follow your job to India? thats some real dedication, I would never follow my job to India no matter how much I liked it.

 

[signelect]

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.

I agree but the problem is that the people who make a lot of money don't want to buy a burger made by people make $10/hr. It is a shame that we hire illegals who as a group work for low wages because we want our yard mowed as cheap as possible because we are too lazy to do it our self. I am living on SS, totally my fualt for not saving but I am not complaining. I haven't bought a new car in 40 years, they are a waste of mony and the union wage that were negotiated and approved by the car companies but their wages and benefits at over $75/hr, at least that is what I have understand. I can't afford on of your cars.

 

[Skull Pilot]

Anyone who works for minimum wage his whole life is too stupid to pay more.

 

[dblack]

Minimum Wage is one of those populist issues (like flag burning) that the demagogues whip out at election time to stir up the dimwits. I've always assumed they know it will do more harm than good but just don't care. It scores votes for the win.

I don't know about that, minimum wage is a real issue. Government forcing a business to pay a certain amount of money? That's an issue that ought to be dealt with. It's much different from your average wedge issue of abortion or gay marriage.

That's a fair point. My observation was that I think even most of the leaders who promote it know it will do more harm than good. But they also know that most voters, who don't think about economic policy critically, will think it's a good thing regardless.

 

[High_Gravity]

Anyone who works for minimum wage his whole life is too stupid to pay more.

Actually some people just don't have the intellect or the skillset to make more, as long as they are honest hard working citizens I have no problem with them.

 

[KevinWestern]

---(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

Tough questions, but as someone mentioned earlier when you set/raise the minimum wage there will be unintended negative consequences that occur. Say you raise the minimum wage by $2 bucks and some of these companies need to cut 8,000 workers in order to stay above water; are we better off then?

It's a shame that everyone in America can't make $20+/hr, but unfortunately that's just the way it is and capitalism is the best system we've got.

I like to try to avoid heavy government interference at all costs because gov't solutions are usually bulky, one-size-fits-all, and create more problems than they solve. However if you want to improve things (in my opinion), you need to start with the basics...

Instill in your children:

-A Strong Education
-Sound Morals and Ethics

If you we can do this, our business leaders will make smart decisions, and will aim for prosperity and fairness for all vs just exuberant wealth for a few at the peril of everyone else.