Less Would be Illegal

There is an ongoing debate in Washington and around the country about the minimum wage. A push is on to raise the minimum wage from $7.25 per hour to $10.10 per hour. The economics of it are not as simple as one would assume. Is it time for a change? Maybe these graphics will help you put the issue into perspective.

The graphic at the top telling girls this will be them if they don't study is somewhat misleading. The fact of the matter is given the current job market even study and hard work in school may not be enough. Please note that deadbeat Ken is sold separately. They appear to be trying to feed the fires of a single unwed mother who has no skills and works a minimum wage job while she scams the system for welfare money. There are a couple of problems with this. McDonalds workers are not this pretty. Second what is it with that smile? Fast food workers are not that happy.

We have all heard the stories from our parents and grandparents about the good old days when they worked for .35 cents per hour. A hamburger, coke and a movie were less than a dollar. Not each but for all three. We would complain then that the $1.75 per hour wage was not enough and listen with eyes rolling as they told us how tough it was back then. Walking a mile to school in the snow with bad shoes, up hill going there and coming home. We could all point out how tough we had it at some point. The minimum wage should allow you to purchase the basic things in life. Food, clothing and a place to live. Cars, cell phones and computers are nice but life can go on without them and cable television. So how long do you have to work a minimum wage to have a place to live?

The thing to keep in mind when looking at this graphic is that we still haven't addressed the other two basics in life which are food and clothing. Maybe Hawaii is not paradise since the number of hours you would have to work per week for a fair market apartment is 175. It is a little tough to do when there are only 168 hours in a week. Clearly, most people making minimum wage don't pay fair market rent. They are being subsidized in some manner by tax dollars. Before everyone gets all high an mighty about they aren't getting any break on their housing keep this in mind. If you pay mortgage interest and file with itemized deductions you are being subsidized though lower taxes. The other issue is that large corporations are making huge profits while the taxpayers subsidize the food and housing of their employees.

The problem with the above graphic is that it appears to over state the amount of food money would buy in 1998 and under state the amount it would buy in 2013. There should not however be any disagreement that $20.00 does not go as far at the grocery store now as it did 15 years ago.

Doesn't that seem wrong? Who are these people working for minimum wage?

It isn't who we think, is it? Maybe it's time for the minimum wage to change. Just look at the facts and decide where you want to stand in the debate.