[QUOTE=Voyager]
Here is a table of median household income by state, 2001 - 2003. (Hasn’t changed much since then.) For the US as a whole it is $43,527, and by state it ranges from $55K in New Jersey to $31K in West Virginia. Do you really think a living wage need be greater than the median income in the highest income state, and 50% greater than the US as a whole? Even a $20K individual living wage would put it at median, and I doubt very much that much is even necessary.
[/QUOTE]
Are you claiming that you can have all that stuff (healthcare, personal transport, housing, good food, saving AND send kids to college) on $20k a year with two earners (i.e. a total family income of $40k)? Realizing that the healthcare is going to be part of that salary? Not to mention all that other stuff? Seriously?
Ok…fair enough then. Lets work with the $20k figure for individual income then. According to Google, the current minimum wage in the US (average) is $5.15/hr. That works out to roughly, what? $824/month? $9888.00 per year? So, you basically are saying that for a ‘living wage’ we would essentially double that salary…right?
Lets just use McDonalds as an example since its always kicked around in these threads. According to this site, McDonalds has 447,000 employees world wide. Lets make some assumptions…lets assume that 200k of those currently make around minimum wage…about $10k a year appearently. You are proposing to essentially double their salaries to around $20k a year to provide them all with cars, houses, health care, savings and educations for their little ones (and all on a mere $20k! Isn’t America great?
). That would be (roughly) 200,000 employees getting a $10,000 anual salary raise (and we won’t even get into what we do with all the OTHER folks who ARE making $20k atm and who would probably want a bit of a bump as well so they were making more than checkout clerks, fry cooks and such)…that works out to roughly $2,000,000,000…around 2 billion dollars IOW. Who absorbs that cost? Is McDonalds expected to just right off a 2 billion dollar loss? Would that loss come out of our taxes? Would the magic money fairy simply give them the money because they are helping folks out? Or would, most likely, McDonalds simply pass that on to us, the consumers, in the form of higher costs for our happy meals?
And this is only one company (albiet a big one)…the same thing would play out to a greater or lesser degree across the board. If they have to pay their employees more than their labor is currently worth, then they need to make that labor worth more…but raising the prices for goods and services to their customers. And none of this gets into who pays for the health care (would probably be split between employee and employer as usual in the US…so thats MORE money from both sides), or what we do with all the folks who are making more than minimum wage now…do they all get a bump? I mean, if I’m making $21k at McDonalds as a shift manager or something, I’m going to want a bump about the same so that my salary isn’t the same as the fry cooks and such who work for me…right? Wouldn’t that be reasonable?
What you guys are proposing would have a ripple effect in the economy…and the irony is, if you got your wish and everyone in the US made $20k or better as a minimum, the prices of goods would rise such that those folks would essentially be in the same (or worse) boat as they are now.
-XT