Minimum Wage Set To Rise To $7.25 an Hour: Still Too Little
Posted: Friday, July 10, 2009
by Asher Ricard
On July 24, minimum wage earners in some states could receive a raise. The federal minimum wage is set to increase from $6.55 to the new rate of $7.25.
Seven states already have laws mandating $7.25 minimum pay, while 14 states and Washington, D.C., exceed the new minimum. Employers are required to pay whichever is the highest: Federal or state.
Add to that, employers are laying off left and right. Will this economy ever succeed? It is a catch 22. The minimum wage is raised. Employers are forced to lay off more to afford the new rates. Employees can't live on that rate anyhow so they are forced to turn to credit or the government.
The government continues to run out of money and go farther in debt. The families can not make the credit payments so they end up in worse trouble. Does any of this seem like a solution?
According to CNN, in June, the U.S. job market shed 467,000 jobs, compared to a loss of 322,000 jobs the month before. Altogether, the U.S. economy has lost nearly 3.4 million jobs in the first half of 2009, which is more than the 3.1 million lost during all of 2008.
At $7.25 an hour, a full-time worker earns $15,080. At the nationwide work week average of 33 hours, the worker would earn $12,441.
Honestly, how can even a family of four live on this income? Day care is expensive. When both my husband and I worked and we had two kids in day care, we paid over 1100 a month in childcare.
If we were on this income, we would have no money left for bills. How do families who earn minimum wage make it? They are considered above the poverty line so typically they can not receive help from the government.
I do not know the solution, but my heart just aches for all these families. Yea, they get a raise! But who knows now if they don't end up laid off because business can not afford the increase.
It just seems like a no win situation for everyone involved. Any thoughts?
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Top-level comments on this article: (4 total)Asher,One question that is seldom included in minimum wage discussions is... "what is the work worth?" Training, education, mentoring and the like will help workers to develop skills that are worth more than minimum wage. Forcing businesses to pay $7.25 for work that may be worth less won't help in the long run. Thanks for tackling a tough topic. Steve
Asher, a very good article and I'll address my comments to professed Christians who should consider this more so then secular society. Now just what work is worthless? Evidently the dishwasher, bus boy, waitress mentality is that certain work should be treated as, well I'll use the term, slave work. Yet when those who have sit down to eat they want "service" and quick. Jump when I want more butter or bread, make sure my utensils are clean. $7.25 and hour really. That is a slaves wage and after taxes a pittance. As for school really. Costs and jobs are a major issue today and may "educated" are working those busboy, car hop, low wage jobs. Today one should consider themselves lucky they have a great paying job for tomorrow they just might know what that $7.25 is really worth, education or not. Good job.
When a household lives beyond its financial means, economic realities will surface, and affect both those responsible, and innocent others.Any nation that lives beyond its natural economy, will also suffer economic realities.
Earning an education or being self employed is the only two ways to avoid working for minimum wage. For those of us who have done that are now forced to pay more for basic work. Minimum wage was never intended to become sole provider family income.
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