Lexis

One of the posts at the Daily Kos caught my eye tonight.

NATIONAL JOURNAL: White House Staff Salary List (07/11/2006)

First off, why do those with the title of "assistant to the president" get a cost of living raise but not those at the lower end of the scale who one imagines would find it harder to absorb higher living costs in their far smaller salaries?

Secondly, why does somebody whose job title has not changed get a $16,000 raise in ONE year?

Thirdly and most importantly, how does one stretch $5.15 an hour into a workable situation? I once watched an episode of 30 days that showed just how hard that was without kids or long term financial commitments (insurance, pensions, a nest egg).

Although the article about White House salaries got me thinking about it, the more I toss it round in my head, it seems strange that while employees at a certain (i.e. high) position are deemed to require raises, those stretching a tiny minimum wage are deemed not to need one.

I know that there's been people in the past trying to get it raised (Sen. Kennedy) and those that object to Senators raising their own wages (Sen. Feingold, I think) but what do you guys think?

Should the minimum wage be raised? How hard is it to live on such limited means? If you think it shouldn't be raised (becuase it puts a strain on business, for example), what can be done to help people at the bottom end of the job market?

mh67511

I think the minimum wage should be increased, but I think it should rise each year, say $.05 or so each year. The problem I have with this whole wait 10 years and raise it is that the raise is so drastic.

I will post later with the specific info on the proposals, I have to find it. But I do know that one was to raise it to $7.25. $7.25 an hour is too high if you ask me. There is no reason a 16-year-old kid living at home needs to be making $7.25 an hour. I *just* worked my up at to $7 an hour at a job -- why shouldn't anyone else have to work up to that?? I'm sick of all the poor work ethics I see these days. In the two years I have been here I have seen counless people come and go because they get tired of the low pay but had they just stuck it out they too might have moved up. Actually they wouldn't have because most gave about 50% effort and never tried or cared. And they wonder why they are going places...

The key to the minimum wage is just that -- it is the minimum. There is ALWAYS going to be a bottom, always. You raise it to $7.25 and the new bottom is $7.25.

Living on minimum wage is tough and face it, you cannot afford cable or cell phone or new clothes or gourmet food or going out to eat or a lot of things you might want. Shelter, basic food, basic clothing, health care, and basic utilities (which does NOT include cable or internet) are really the main needs. In certain parts of the country you might need transportation (although if you have ANY access to public transportation that should be your first choice). You're probably going to have to work more than 40 hours a week. You're probably not going to be able to afford to support a child, so you better be using a condom. You are going to have make a lot of hard choices.

I do think that the entitlement mentality is out of control these days. I'm not ragging on poor people either because I AM a low-income earner, but I am disgusted by the attitude of many of the people I work with. They expect so much, but don't want to put in the time or effort! And when their employer doesn't pay what they think they should be making, they expect the government to support their lifestyle.

Additionally, Americans seem to have a horrible time distinguishing wants vs. needs, probably why our savings rate is horrendous and consumer debt is out of control.

I know a lady at work who is very poor and you name it shes on it: food stamps, public housing, SSI, utility assistance, etc. We were talking the other day and she proudly proclaimed that she had just paid off her "big screen" from Rent-a-Center. I like her, but really now that's ridiculous (and frankly should NOT be allowed by the government, but that's a whole other topic...)

My advice:
1. Don't drop out of high school.
2. Work hard at everything you do.
3. Try to further yourself by going to college or taking classes, trade school, etc. You need SKILLS to earn more. You don't have to go to college to make a decent living, but you DO need to have skills.
4. Don't have a child until you can financially support one.
5. Learn to distinguish wants from needs and ALWAYS satisfy your true needs before wants. This means that the electric bill comes BEFORE the cable bill.
6. Stay out of the credit trap. Do NOT buy things you can't afford!
7. Learn to live a frugal life.
8. Always try to save money. You never know what life will bring and it goods to have a safety net. Even if it is just $5 a week it is better than nothing.

Lexis

You made some great points! I think the thing about minimum wage is that although there is always going to be a diffirence in the income people are earning, the minimum should be sufficient to allow people to manage their basic needs.

In the UK we operate on a scale system:

HM Revenue & Customs: National Minimum Wage

Maybe something like that would be good for the US (with the point you were making about 18 year olds still at home not needing the same minimum as a 32 year old on their own).

TheAngel

Raising the minimum wage is not economically feasible. If you raise the price being paid to workers than companies are going to raise prices of consumer goods so they can make a larger profit, so you were paying $1.50 for a product, now you're paying $1.75 so even though you're making more, you're spending more. Also, minimum wage jos, no matter how high the wage is, is not meant to be the primary breadwinner for a household. Teachers have a hard time making it when they get $30,000 a year.
I've worked in a minimum wage job before as a college student, which is who these jobs are working for, kids that don't have all the needs of supporting a family, having insurance (since kids have insurence from their parents until they're 24 as long as they're in school on many plans). There are numerous places around me, Fed Ex, UPS, labor jobs, that pay $10.00 but people aren't willing to work that hard for the money. They want to stand around all day and get paid huge amounts of money.
If you are working in a minimum wage job it's because you chose to quit school or you chose to do so. Nothing was forcing you to go to K-mart and work there for the rest of your life. Also, a huge number of jobs don't start you at minimum wage. I was making $6.45 an hour with no experience when I started working when I was 18.
These jobs are made for high school and college kids and elderly workers that chose to work by choice. Raising the minimum wage won't help, rasing the common sense of the US population might.

mh67511

Ok I found the information on the proposed increase. <ost Senators voted to increase the minimum wage. I think just a handful voted against both proposals. They differ on how much the increase should be and when.

The Democrat backed proposal was to raise it to $5.85, then $6.55 a year later, and $7.25 a year later. This would have started 60 days after the Defense bill goes into place.

The Republican backed proposal was to raise it to $5.70, then $6.25 a year and a half later. This would have started 6 months after the Defense bill goes into place.

clone

How about......

Getting a job that doesn't pay 5.15 an hour.

Maybe this is harsh but you gotta be pretty f'ing stupid (HS/college summer jobs don't count) to have a min wage job.... or a job that pays less than 8/hr anyway.

elisheva

Not everyone is in a position to get a job with better than minimum wage. It has nothing to do with being stupid.

Students aren't the only ones making minimum wage. You seem to acknowledge that later in your post, though. Also, while yes "don't have a kid 'til you can support the child" is the ideal, life is messier than that.

I think y'all are over-focusing on minimum wage for STUDENT jobs, and not thinking about the countless low-income adults who really do support themselves/their families on minimum wage.

Mio

Min wage here is $7.25, but I make almost double that.. I happened to score an awesome job. Min wage doesn't pay bills, it doesn't do ****. You can work 40 hours which is full time and not make enough to pay rent.

How in heck am I going to be able to afford living on my own? Absolutely no way. I'll starve just because I'm paying bills and rent.

elisheva

Mrs George Eads, you have a wonderful wonderful signature. I was just watching that ep of Are You Being Served? a few weeks ago.

To make it slightly on-topic: $7.25? I seem to remember you're in Canada - where in Canada are you? In Quebec it's been raised from 7.60 to 7.75.

*Ledi*

I think it's the same in Ontario. Either $7.45 or $7.75. Not sure.

thescoobygang

I did a quick check. It's $7.75 in Ontario. We have been raising the rate in small increments in recent years:

1995- $6.85
2004- $7.15
2005- $7.45
2006- $7.75
2007- to be $8.00

Sad but true. As soon as you start making more everything costs more. Instead of getting ahead you end up breaking even. I had a 3% raise twice in the past 2 years but that was virtually eaten up by the new Health premium and the rise in transporation costs.

A rise in minimum wage is probably needed in the US but I don't know how much it will really help people with the cost of living jumping all over the place.

SnarkySheep

$7.25 an hour is too high if you ask me. There is no reason a 16-year-old kid living at home needs to be making $7.25 an hour

How do you know that said kid doesn't NEED that job, in order to significantly supplement his single mother's income or something? While it's true that many teens simply get jobs for something to do during the summer, or to earn a little extra spending money, there are also many others whose parents depend on them to help out with the household income.

Secondly, it's no one's concern who comes from what sort of circumstances. In an ideal world, those who needed the money more would GET more...but it's not exactly as though an employer can say, "Okay, you're still underage and living at home; you'll do the same job as the single 25-yr-old mother supporting a household, but we'll pay you less"? Imagine the trouble that would start...

Of course minimum wage is never enough. Here in CT it's $7.40, and that's peanuts. On the other hand, after earning a BA and half a Masters, I have yet to see $12/hr. That's why I keep struggling to better myself, and find better jobs, as impossible as it may seem. People with minimum wage jobs also need to do that. No one says it'll be EASY or QUICK - as many people today are accustomed - but it CAN happen.

Jen Jaree

I think she lives in Winnipeg Manitoba. I live in British Columbia it's $8 an hour here but we have a student wage in some jobs where you get $6 an hour untill you have worked 500 hours.

Full-Time work at minimum wage. If you live in a small town you may be able to get by because rent is way cheaper there.I live in a town with a 20,000 population, I make more than the minimum wage and I think I could get buy if I didn't. If you live in Vancouver you wouldn't be able to afford a cardboard box in the Downtown Eastside.

- Jen -

Here in Australia, the minimum wage is about $12.30 hr, which is about $9.25 and hour $US. Thats for an adult. However, for younger people working, it actually starts lower, and goes up every year for example

16 year old- $6.37 hr
17 year old- $7.65 hr
18, 19, 20 years old etc

And if you're 21 and over its the same minimum wage...

Thats for full time/part time employees, if you are a casual employee, the minimum wage is higher, about $1-$2 an hour more..

*Ledi*

I find it sad that the minimum wage is so much lower in the States compared to other first world nations.