“Minimum Wage War”
Does anyone really understand how poor the current minimum wage is for those earning at that rate? 40 hours X $7.25 = $290.00 or $290.00 X 52 weeks = $15,080.00 Well, if this is a single person, that means $290.00 less $27.90 (income tax) less $17.98 (social security) OR $260.32 per week take-home before any other deductions such as insurance. $260.32 X 52 weeks = $13,536.64 per year. Let's assume that is an average working person who drives a car, eats food, goes to the doctor, has headaches, pays rent, watches cable TV or uses the internet, has a cheap phone, etc., and is fairly healthy.
Minimum wage Income minus deductions
$13,536.64
Expenses: (annually)
Rent
$4,800
Car Note (used car)
1,200
Car Insurance ($500 deductible)
2,400
Life Insurance (burial policy)
480
Renter's Insurance
240
Car expenses (gas, oil, repairs, etc.)
2,400
Electric bill
1,800
Water, sewer, etc.
900
Cable/internet/phone
1,800
Food
2,400
Medical (insurance, co-pays, drugs, etc.)
2,400
Miscellaneous (clothes, dating, etc.)
1,200
Total Expenses for Year
22,020.00
Problem? (Guess it goes to the credit card?)
Deficit
($8,483.36)
Where do you cut expenses?
Now, if we go immediately to $12 per hour, this person would earn $480 per week minus $56.40 (income tax) less $29.76 (social security) = $423.84 X 52 weeks = $22,039.68 take-home and would be able to pay all the bills PLUS save $19.68. Yeah, sort of I guess. If we go to $15 per hour, this person would now earn $600.00 per week minus $74.40 (income tax) minus $37.20 = $488.40 X 52 weeks = $25,396.80 and not only pay bills but have $3,376.80 to save, invest, maybe take a vacation which couldn't be afforded before now. Isn't this would people work to do, have a chance to improve their economic condition, improve living standards, and see a future?
What about overtime? Most companies despise overtime now because it costs them too much! At $15 an hour, this person at least has a chance without overtime. All the “naysayers” need to realize that working people SPEND their wages, which creates a market for goods and services that employers are producing. Corporations should be looking to increase wages for their workers because it is a cycle which will only improve their sales! It is very short-sighted to look at the current bottom line, UNLESS a CEO is only interested in HIS/HER salary and bonus. The health of any business is continued sales and production. The best way to do that is PAY WORKERS WAGES THAT MAKE LIFE BETTER!
While I would like for wages to rise immediately to at least $15/hour, I would be willing to start at $12 and go up $1/hour each year until reaching $15. Thereafter, the minimum wage should be tied to the inflation/deflation rate as established by Congress and used for social security increases. Will prices rise? Yes, but not at the rates that are claimed, at least not so long as prices only increase to cover payroll increases. It's companies who try to also increase profit percentages that are the problem. CEO's and executive salaries do not need to increase; they already have their piece of the pie. It's time to cut bigger slices for those who do the actual work of producing and servicing!
Robert Butler
P.O. Box 193
Marmaduke, AR 72443
"...Therefore, never send to know for whom the bells tolls; it tolls for thee...: Meditation 17 by John Donne 1624
