The federal minimum wage is $ 7.25 an hour, a rate that has not increased since 2009. As the current wage stagnates, your purchasing power erodes in the face of inflation. living wage Current, defined as an income threshold that provides basic room and board and keeps a person above the poverty line, is $ 16.54, according to research from the Massachusetts Institute of Technology.
Of course, what constitutes a living wage depends on the cost of living, which in many cases is dictated by geography. The most expensive areas to live in 2020 were the Northeast, Hawaii, Alaska and the West Coast, reports the Information Center. and Missouri Economic Research. The least expensive areas were the southern and midwestern states.
To compare the cost of living in all states and Washington DC to the minimum wage, Stacker consulted the Massachusetts Institute of Technology’s Living Wage Calculator. The tool aggregates child care, food, housing, and other costs of living into a living wage that depends on the composition of the family. For the chosen statistics, the calculator assumes that all adults work full time (2080 hours per year). Data is recent until 2020.
The Economic Policy Institute argues that low wages are particularly damaging for workers of color. A minimum wage of $ 15 would represent a wage increase for 31 percent of African Americans and 26 percent of Latinos. The Budget Office The Congress estimated in 2019 that a wage of $ 15 an hour would increase the rate of pay for 17 million workers, but that it could cost 1.3 million jobs. Major business groups have opposed the measure, as have the Republicans who have hampered efforts by Congressional Democrats to raise the national minimum wage to $ 15.
While the federal government remains stagnant, individual states are moving forward. California was the first state to raise the minimum to $ 15 per hour (by 2023). In states with their own minimum wage laws, workers are entitled to the higher of the two established salaries.
Read on to see how the minimum wage in your home state compares to the cost of living.
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– Minimum salary: $ 7.25 ($ 15,080 per year)
– Living wage for:
– 1 adult: $ 13.77 ($ 6.52 difference)
This is a brief summary.