Despite the differences between me and my conservative friends, there is one point on which we invariably agree: No one who works full time should have to rely on government assistance. In other words, if you work 40 hours a week you are a contributing member of society and should not have to rely on the government for financial assistance to survive. This seems logical. However, despite agreeing on this important point, my right-leaning friends often lose sight of reality and believe that if someone works 40 hours a week, he/she will be able to live independently, just so long as that person can muster the strength to live within his/her means. It’s simply a matter of hard work and self-discipline. Reality check.
The current federal minimum wage is $7.25 per hour. (Fortunately I had to look this up. The last time I earned minimum wage, it was $4.75 an hour.) If a person works 40 hours a week, he/she will gross $1,257 a month, or $15,080 annually. Let’s apply this to a specific situation. I consulted the website, paycheckcity.com, to find out how much a single person living in Texas would take home if he/she worked 40 hours a week at a minimum-wage job. The website calculated that this individual would take home $1,085 per month after paying federal taxes ($75.06), Social Security ($77.91), and Medicare ($18.22). (Granted, much of the federal taxes collected from low-wage earners are paid back every April, but people earning minimum wage don’t get to touch this money until the end of the year. And keep in mind that this payout during tax season only applies to the money they paid in income taxes, not the money they put into Social Security and Medicare.) Fortunately for Texans, there is no state income tax. Forty-three states implement state income taxes, meaning minimum-wage earners actually fare better in Texas than many other states.
Let’s say our hypothetical low-wage worker lives in Dallas, TX. In Dallas, an average one-bedroom apartment not located downtown (downtown is too expensive) is about $750 a month. If our minimum wage worker pays $750 a month in rent and spends $10 a day on food, he/she has $35 left over for other monthly expenses. Let’s say this is just enough to cover a very basic cell phone plan. Oops. Looks like our low-income worker forgot to budget for utilities (gas, water, electricity, garbage), transportation, clothing, TV, Internet, childcare, diapers, tithing, toiletries, household cleaning supplies, stamps, pets, and the occasional pizza. Owning a car and buying gas and auto insurance are clearly not an option. Forget about hobbies and recreational activities like traveling, buying books, going to the movies, or buying gifts. And tuition for school? Forget about it. Savings for retirement? Ha! Emergency fund? What’s that?
The highest minimum wage in the country lies in the liberal bastion of Washington State—where the minimum wage sits at a whopping $9.19 an hour. The average cost of a one-bedroom apartment in a suburb of Seattle is approximately $1,000 a month. Allotting $10 a day for food and running the same calculations, we have $45 left over before considering any other monthly expenses. This is virtually identical to the bleak situation in Dallas.
If Americans wants to make it on minimum wage, they have no choice but to depend on others. First of all, living alone is not an option. Minimum-wage workers have to live with their parents or share a dwelling with multiple roommates. Even then, they will likely have to rely on food stamps to eat three squares a day. They will have to rely on Medicaid or other government-provided healthcare programs. Given that monthly childcare expenses can easily exceed $1,000, it makes no sense for parents to ever work a minimum wage job, unless someone agrees to watch their children for free. This point illustrates the glaring hypocrisy demonstrated by conservatives who emphasize the importance of mothers staying home while simultaneously demanding that parents work and not rely on government assistance.
McDonald’s came under fire this year over a proposed budget they created for their minimum-wage employees. The most striking detail of the budget was that it required full-time employees to find a second full-time job—not a part-time job mind you, another full time job. McDonald’s freely admits that working 40 hours a week for their business is not enough to put a roof over their employees’ heads. For their employees to make ends meet, they must work 80 hours a week. Even then, the employees have great difficulty. For example, no money in the McDonald’s budget is allotted for paying the heating bill, while other expenditures are greatly underpriced. For example, the amount set aside for health insurance is a ridiculously low $20 a month.
Given all of these facts, why are we not all demanding a higher minimum wage? Because of minimum-wage myths that refuse to die.
One common myth is that most minimum-wage workers are teenagers. This fuels the argument that the minimum wage does not need to be increased because the people earning it are kids living at home. Furthermore, minimum-wage jobs are more about teaching teens responsibility, and the money only goes towards buying Playstations and makeup anyway. In actuality, 80% of Americans who earn minimum wage are over the age of 20. Twenty-five percent of minimum-wage workers have children. The fact that we have so many middle-aged and older Americans working these jobs runs counter to other conservative myth that minimum-wage jobs are simply short-term stepping stones for young workers who are on their way to more lucrative careers.
The other popular meme we hear is that raising the minimum wage will hurt the economy because businesses will cut jobs, which will result in higher unemployment. This is a hotly-debated point, but it shouldn’t be. This is an easy issue to research for the reason that the minimum wage has increased many times over the last 50 years, and we have a mountain of data each time it goes up. The jury is in on this issue. There is no correlation between minimum wage increases and unemployment. In fact, when the minimum wage stagnated during the Reagan years, we saw unemployment rise, directly contrary to the conservative meme. A 2011 study looked at businesses in Georgia and Alabama, following the minimum wage increases that resulted from 2007 to 2009. Of those business owners, only 4% said that laying people off was a “very important” strategy to make up for lost wages. Turns out business owners are much more creative and savvy than conservatives give them credit for. Business managers revealed multiple other strategies to make up for the loss in wages. In the states where the minimum wage exceeds the federal minimum wage, we have actually seen a slight decrease in unemployment, further negating the belief that raising the minimum wage will raise unemployment.
No one has a crystal ball, and no one can say with absolute certainty what the impact will be of raising the minimum wage; but don’t we owe it to our fellow Americans living in poverty to give it a shot? Keeping millions of Americans in a state of perpetual poverty because it might result in the price of a burger going up by ten cents seems as silly as it does heartless? Surely we can do better than that.
The minimum wage doesn’t just need to go up. It needs to skyrocket. It needs to double, at least. If the federal minimum wage doubled to $14.25, minimum-wage employees would gross $30,000 a year, hardly an exorbitant income. Conservatives love to tell us how welfare is a gravy train for people, and it only incentivizes laziness. But rather than make the welfare system more miserable through mandated drug testing and slashed benefits, we should be working to make full-time employment a path out of poverty. Both sides of the political aisle would love to see our unemployment rate plummet along with the number of people on the welfare rolls. There’s certainly a strong argument to be made that this could happen if people realized they can finally survive on a minimum-wage income.
– Nathan