Surprising Facts About Minimum Wage Earners

by Muskoka Posted 2012/07/27 23:36:47

Related Topics: Congress, Senate, Economics, Wage, Family, College, teenagers, Economy, Pictures, Labor, Minimum Wage, Teens, Iowa

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Opponents of increasing the nation’s minimum wage always fall back on
the argument that it doesn’t need to be raised because it’s mostly
teenagers working part-time for extra pocket money who are getting that
hourly figure (which right now is $7.25).

A new study shows that stereotype isn’t true. In fact, the majority
of minimum wage workers have completed some college, live in families
making less than $40,000 a year and so are contributing to the family
income, and are working full-time.

Economic Policy Institute (EPI) economist Doug Hall blows up the myths behind the minimum wage at EPI’s Working Economics blog, where he also shows that the vast majority of minimum wage earners are white and only 15 percent are part-time workers.

Hall argues that now is the ideal time for Congress to raise the minimum wage.

As my colleague David Cooper wrote in April,
increasing the federal minimum wage to $9.80 by July 1, 2014, would
benefit more than 28 million workers and increase national GDP by over
$25 million, in the process creating more than 100,000 jobs. Given the
lackluster recovery that continues to cast a pall over the nation, this positive step should be embraced by all those who care about the well-being of working families.

Hall writes that Iowa Sen. Tom Harkin (D) introduced the Rebuild America Act, a bill that contains important provisions to strengthen the economy and improve the well-being of working Americans.

Among the many worthy elements of this bill is a proposal to increase the federal minimum wage to $9.80 by July 1, 2014.

Next week marks the third year since the federal minimum wage was
increased. But it’s a good bet for many members of Congress, the only
way they would raise the minimum wage is if they actually had to live
on $7.25 an hour.

The National Employment Law Project (NELP) just released a new report
that also provides unexpected facts about minimum wage workers,
including the fact that the majority (66 percent) of low-wage workers
are not employed by small businesses, but rather by large corporations
with more than 100 employees. Read the report summary here.

Anonymouse BN-0 ~bibbityboo~ 2012/08/18 20:08:52 (edited)

The minimum wage should be scrapped. Let the unions barter with the companies for better wages, it's not the government's place. After all, in the Nordic Countries, there is no minimum wage, but almost all wage earners have their salaries protected and a minimum wage agreed on by the company and unions. The government sits back and watches, which is how it should be. And if we have to have a minimum wage, it should only apply to larger companies. All block regulations affect small companies most.

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Muskoka to Anonymo... 2012/08/18 20:31:40

There are no unions in the majority of companies that employ minimum wage earners. That is why there are minimum wages to protect those workers no one else will.

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Anonymo... to Muskoka 2012/08/18 21:03:14

And that's because the government tries to control the unions. All the cleaners could set up a union and refuse to work unless their wages were raised. But the government puts restrictions on them. And besides, the thing I hate about the minimum wage and income taxes is that it means the government is mandating the voluntary exchange of labour for capital. That's why I'm more of a Georgist.

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Muskoka to Anonymo... 2012/08/21 05:36:00

You are not making any sense.

The fact that minimum wages are in place to protect those who do not have a union to protect them, has nothing what so ever to do with the governments attempt to control unions.

With out the people contributing to the general maintenance of the country, exactly how do you think a country can exist?

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Anonymo... to Muskoka 2012/08/21 11:01:28

The government controls union creating hoops to jump through to create them. So they can't protect themselves. And if you don't see it, look at Norway and Sweden. The people needed for general maintenance is dropping every day with technological advances and mechanisation. Labour intensive manual jobs are now labour light. And if you give a cleaner a good wage, she's not going to want to leave the job and get a better one, is she? I think a negative income tax is a much better way of keeping everyone in the black than a minimum wage. Then it also gives inexperienced workers the chance to get into an industry.

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Ron in Oregon 2012/07/28 19:59:39

$8.80 per hour in Oregon.

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Muskoka to Ron in ... 2012/07/28 20:06:28

$9.50 in Saskatchewan Canada

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Ron in ... to Muskoka 2012/07/28 20:22:33

Isn't the exchange rate almost equal now also?

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Muskoka to Ron in ... 2012/07/29 00:26:49

Yes it is

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JanHopkins 2012/07/28 04:21:28

+1
You can raise the minimum wage all you want to but just remember that it forces the price of everything to skyrocket and the loser is still the minimum wage earner.

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Muskoka to JanHopkins 2012/07/28 17:47:02

It is not the minimum wage that increases the cost of products. It is the wages of all the other earners that does that. They do not make up the masses of wage earners.

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JanHopkins to Muskoka 2012/07/29 07:44:36

So you believe that the other earners get $2.50 an hour raises on a yearly basis?

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Muskoka to JanHopkins 2012/07/29 16:02:58 (edited)

I made no comments at all about the increase in wages. Why are you trying to put words in my mouth?

However, I have never gotten a raise of less than $1 per hour at any time in the past 15 years.

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JanHopkins to Muskoka 2012/08/01 10:29:23

+1
Raises in my county generally run under the 50 cent line. Most of the time wages are frozen due to the crappy economy. Every time the minimum wage was raised it spiked prices and of course we who worked for years as skilled labor did not get a raise. So some kid stocking shelves and sweeping floors ends up making nearly what those of us who took college courses to enhance our skills. Where is the payoff for knowledge, skill and experience?

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Muskoka to JanHopkins 2012/08/01 20:16:23

It is not minimum raises that spikes prices as there are not enough minimum wage earners to cause that kind of trend. There wages also do not impact the market as much as the other workers do either. Employers simply use that as an excuse to raise their prices more than is necessary.

I am sorry, shelf stockers and floor sweepers do NOT make the same money that college grads make at all. You really do need to do some research and get your facts straight.

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JanHopkins to Muskoka 2012/08/03 14:01:33

You are talking college grads. I am talking skilled labor.

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Muskoka to JanHopkins 2012/08/06 21:40:40

Skilled labor makes very good money as well and frequently make equal money to college grads.

Good welders, pipe fitters or carpenters are in high demand. A kid out of school cannot expect to make the same wages they do.

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JanHopkins to Muskoka 2012/08/07 02:58:06

I totally agree with that. Don't think that I didn't put my time in making minimum wage or less. It's the crap pay that encourages you to improve yourself.

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Muskoka to JanHopkins 2012/08/07 04:28:41

Well, these days with the unemployment rate, many are working for that anyway as it is the only job they can get.

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JanHopkins to Muskoka 2012/08/07 13:34:21

+1
Something definitely has to change. I don't think that raising the minimum wage helps overall though.

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Monty to JanHopkins 2012/08/11 22:12:31

i agree

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Muskoka to JanHopkins 2012/08/12 00:49:05 (edited)

It will certainly help those who are on minimum wage. To continually place blame on those who make minimum wage unreasonable since they are not the biggest wage earners in the country and do not have the biggest effect on prices.

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Muskoka 2012/07/27 23:38:28

+2
Have you ever wondered just how people who make minimum wage actually survive?

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He'a: k... to Muskoka 2012/07/28 00:37:03

I wonder how I make it every month....

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Muskoka to He'a: k... 2012/07/28 01:43:48

Me too.

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shrfu31 to Muskoka 2012/07/28 05:17:38

No joke. I really don't know how people can even begin to enjoy life making less than 60-70K. How can you buy a car? What about a house? What about repairs and savings?

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Muskoka to shrfu31 2012/07/28 17:47:51

+2
The simple fact is you cannot do any of those things. You are lucky if you can buy food and find a decent place to live.

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JanHopkins to shrfu31 2012/07/29 07:48:23

You buy an old house. You buy an old car. You buy furniture at rummage sales. You buy very cheap clothes. Repairs are do it yourself and savings don't exsist.

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Monty to shrfu31 2012/08/11 22:13:53

omg! i only make 22k a year and i'm not doing so bad,be doing better if i din't upgrade my cell phone cable and internet

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Muskoka to Monty 2012/08/12 00:53:09 (edited)

Minimum wage would be around $17,680 per years. Not sure how anyone with a child would do that.

That would be working at Wal-Mart full time with no medical benefits.

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Monty to Muskoka 2012/08/12 21:04:36

don't work at walmart?

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Muskoka to Monty 2012/08/18 02:26:19

It was an example only, it could be any place.

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Monty to Muskoka 2012/08/12 21:05:19

i worked there and didn't make jack,but i didn't expect to make much there,low skilled kinda job

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Muskoka to Monty 2012/08/18 02:27:05

It is a job when nothing else is available. For some that is all that is available in todays market.

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shrfu31 to Monty 2012/08/21 12:06:01 (edited)

Really? Wow. It is truly amazing what the human psyche is capable of. How do you watch TV? Are you over 18? How can you buy things like a new computer or car? Do you live in a cheap state? How can you rationalize the vast disparity between your life and what is portrayed in music, magazines, and movies? Or are you a trust fund baby and just messing with me? Lol.

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Anonymo... to Muskoka 2012/08/18 20:18:16

Depends where you are. The cost of living varies quite dramatically, and so does the minimum wage. Over here it's the equivalent of $9.70 per hour.

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