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Minimum Wage USA

Minimum Wage USA

What is the Minimum Wage in this country?

USA Wage Minimum

Federally mandated minimum wage was recently increased, and will increase again soon. From the Department of Labor website:

https://www.dol.gov/dol/topic/wages/index.htm

However, states are allowed to set their own standards, and even different counties and cities within states have different minimum wage rates based upon their living costs. For instance, the minimum wage in California is currently $7.50 per hour, but will increase to $8.00 per hour on January 1, 2008. San Francisco's minimum wage is $9.50. In addition, certain occupations are required to be paid at a certain level, for instance, computer programmers are something like $30.00 to $35.00 per hour.

Then there's the phenomenon of "prevailing wage" that government agencies use when contractors bid for jobs, including H1-b visa workers. Workers have to be paid this "prevailing wage" rate that is above and beyond anything realistic in the "normal" workplace.




Edited: FarSeer on 7th Oct, 2007 - 8:54pm

Minimum Wage USA History & Civil Business Politics

Minimum wage, maximum fun!

If you earn the minimum wage, today is a day you've been waiting for, for a very long time. You can leave all your worries behind because you just banked a 70 cent raise! Booyah baby! Pay no attention to the fact that because the economy stinks and your employer will likely can you -- making your new wage $0 -- you can now enjoy the good life! Ref. Source 5

USA Wage Minimum

I have a feeling that this boost is going to do nothing to help the economy and will cause prices all over to rise as the local merchants strive to still make a good profit and still be able to afford the new wages to their employees. I have a feeling the US dollar will drop and people will buy less.

USA Wage Minimum

What is worse than rising prices is the fact that every time the minimum wage has been raised, there has been a huge loss of minimum wage jobs. These are mainly entry-level type jobs for teens and new workers, so the rise in the minimum wage damages most those people it is purported to help.

And, yes, I think it is very bad for the economy.

Minimum Wage USA

Now that is a pretty good sized raise! The cost of this raise is going to be passed on to all of us buying fast food, shopping at a convenience store, going to a movie, shopping at WalMart, etc... It really doesnt surprise me at all, but I would have thought they might have waited a month or two after proposing a surtax (or shall we say a paycut) from the rich of America to pay for the health care before they give a raise to those making minimum. We really do seem to be trying to see how far we can push the confidence of the dollar on the world market.

Rather off topic, but... I had a conversation with a co-worker after one of the last minimum wage increases. We were talking politics and I said that we should all enjoy are most recent paycut and the co-worker asked what I meant. I informed them that the minimum wage had just be raised. They said...so. Since they were an engineer, I was kind of surprised by the response. So I said...well we are going to pay more for fast food, movies, convenience store prices, etc... Then they said "people have a right to make a living at whatever job they do". I couldn't help but ask, "so a person flipping burgers at McDonald's should be able to support their family?" They said "absolutely". "So what kind of life should they be able to have off that salary?", I asked. "Food and a place to live" was the reply. "How about cable tv and insurance? Do they get cable and a phone? What about a Sony Playstation?" They said "TV is normal, but maybe not cable...although everyone has it. Plus, they need a phone for work. Everyone should have insurance." "How many kids should be supported off that salary?" They said "I think the national average is 2." "That is a pretty decent life for flipping burgers", I said. "So I am assuming you believe that all burger flippers are equal and since they are doing the same job should get the same pay...right?" They agreed that all burger flippers should make the same salary. They I asked "So, when the burger flippers 2 kids are 16 and can work. If they flip burgers too, they should make the same amount right? Enough to support 2 children each and pay rent, electricity, phone, insurance and food." "ummmm, well they are doing the same job". "I have 3 questions for you...how much do you think a Happy Meal will cost in this world, why did you decide to be an engineer and why doesnt the father just play golf daily after his kids reach 16 years of age, since all their earnings belong to the parents until 18? I mean, dont you think that you are going to want a raise soon after that because your status in that world is not a whole lot different from a burger flipper at McDonalds? Once you get your raise and the rest of us that arent minimum wage get our raises...wont it be time to raise minimum wage again? Sorry, more than 3 qestions." They proceeded to explain to me that they wouldnt need a raise. I did find it a bit ironic that they drive a Lexus, wore designer clothing and went on vacation frequently. I think they believe I am the second coming of Rush Limbaugh.

Edited: Vincenzo on 27th Jul, 2009 - 2:39am

Minimum Wage USA

Minimum wage in my area is already $8/hr, so this raise won't affect most people here. I think it's something like $9 or $10 in the San Francisco area.

Let me just show you (as your accountant) what minimum wage at $7.50 an hour is in real cash:

Average work day = 8 hours
Average work week = 40 hours
Pay at $7.50 x 40 hours = $300

Okay, but let's not forget taxes - Social security and Medicare come right off the top @ 7.65% = $300 x .0765 = $22.95 = Net pay $277.05.

Married with 2 kids:
Federal income taxes = 1.00
State income taxes and disability = 9.58

$277.05 - 10.58 = $266.47 take home pay.

$266.47 x 52 weeks = $13,856.44

Rent in my area for a 2-bedroom apartment is around $750/month.
$750 x 12 = $9,000

... Leaving $4,856.44 per year for food, utilities, car insurance and gasoline and repairs, clothing, school supplies, child care, etc.

- Cheapest car insurance I've seen is $25/mo = $300/ year
- Gasoline @ $50 (variable, of course) = $600/year
- Utilities (gas, water, electric, trash, cable) $75 (very conservative, mine is 3 times that but apartment dwellers may not have to pay for water or trash) = $900/year
- Food, conservative estimate is $300/month for 4 people = $3,600/year
(more if they go fast food, less if they cook for themselves)
- Child care is easily $50 a WEEK for ONE child (50x2x52) = $5,200/year

300+600+900+3600+5200 = $10,600

Even taking off the child care if only one person works = $5,400 we're already well beyond the budget. This is why many families have both parents working - they can't afford not to. This is also why many immigrant families will live together to share expenses so that they can at least have someone at home to watch the kids.

If I'm wrong about the numbers, give me the "head's up" and we can recalculate. But these are realistic for Inland Southern California.

Minimum Wage USA Politics Business Civil & History

I agree with the numbers. However, minimum wage jobs are not meant for families to live on. They are meant to be entry level jobs, or part time jobs. They are meant to be places for high school students to learn how to work.

The thing is, by setting a minimum wage, the government attempts to circumvent the market, which always causes problems. As I stated before, every time a minimum wage is implemented and/or raised, it has resulted in slower economic growth, and huge growth in unemployment and businesses have to cut labor.

Now, by your numbers, it appears that a single person under the age of 65 who is earning a minimum wage is above the poverty threshold. However, if there is one other person in the family they are below the poverty threshold.

So, what level should the minimum wage be? At what level does it provide a livable wage? $10.00 per hour? $15.00? $20.00? And when the minimum wage gets to $15.00 per hour, will it actually BE a livable wage? Or will prices have risen so much to counterbalance the increased labor rates that it will still be a poverty level wage?

One of my favorite websites is the Mises Institute. It is devoted to Austrian Economics (as opposed to Keynesian) and libertarian thought. I just read a great little article about the hidden costs of minimum wages.

There is more, and it is very interesting.

Source.