Christian Reed - Christian Reed S02169496 3-26-2009 INDV...

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Christian Reed S02169496 3-26-2009 INDV 103-McBrearty Issues Paper Assignment: Minimum / Living Wages Minimum / Living wages
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R e e d | 2 As January 1, 2009 the Arizona minimum wage was set at $7.25 an hour and starting July 24, 2009 it will be the federal minimum wage. “The earnings of minimum wage workers are crucial to their families' well-being. Evidence from an analysis of the 1996-97 minimum wage increase shows that the average minimum wage worker brings home more than half (58%) of his or her family's weekly earnings.” (Neal) With the upcoming wage increase what can we expect to happen to both sides of the labor force; the employees and the employers? Adults make up the largest percent of the work force (10%) working on minimum wages and of those, women are the largest group benefiting from increases. “More than one-quarter (26%) of the workers who will benefit from an increase to $7.25 are parents of children under age 18, including 1.2 million single parents. The average minimum wage worker brings home over half (58%) of his or her family's weekly earnings (Economic Policy Institute).” This means that while they are working on minimum wage they are not able to provide enough to live even at a below poverty standard with a family. The federal poverty line in the United States to today is $20,444 for a family of four. In order to be able to live off the basic necessity it takes approximately $77,069 to survive. (Silicon Valley Blogger)
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R e e d | 3 Now let’s say there is one parent working at minimum wage ($7.25) for forty hours a week 52 weeks a year. At $290 a week that person will make about $15,080 in year. This is way below the poverty line so now both parents need to work this will increase the families income to about $30,160 a year above the poverty line but this is still not including taxes that will have to be paid on the earnings. “ A four person household with two working parents cost 45% MORE to maintain than a four person household with only one working parent. This is mainly because the family with a stay at home parent doesn’t have to pay for child care or
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This note was uploaded on 04/07/2009 for the course NATS 006 taught by Professor Eisner during the Spring '09 term at University of Arizona- Tucson.

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Christian Reed - Christian Reed S02169496 3-26-2009 INDV...

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