"In for a dime, in for a dollar..."
Now that the silly season is in full swing, the topic of "livable wage" has once again emerged. This is one of my favorite topics. Why? Nobody seems to be able to define what a "livable wage" is. Way too many variables to come up with a common definition. It reminds me of years ago when my boss came up to my desk and asked me the strangest question. "Are you satisfied with how much I am paying you?" I looked up at him and said "Sure." He responded, "Wrong answer! It is never enough! You should always be looking for more."
Many years ago the City of St. Paul passed an ordinance that anyone who was an contractor in the city had to be paid a "livable wage". The radio guy I listened to at that time was a long time resident of St. Paul. He brought up a very good point. If you want to pay a "livable wage", it is not $7.50/hour as prescribed by the city - it would be more like $20/hour. His point was simply this. If you wanted to have a house, a car, feed your family and so on, $20/hour was about the lowest you could make. And that was back in the 1980's.
Yesterday there was a mass walk out at many of the fast food restaurants in a few select cities. They want to unionize so their wages can have a "floor" of $15/hour. That would equate to about $30,000/year. Here is a news flash - these days you can't raise a family on $30,000/year. For a family of four, that is only $6,500 above the poverty line. The place that employees you would have to raise their prices substantially in order to pay you that salary. So high, that you would probably not be able to afford to eat there.
Now you begin the slippery slope. Remember the UAW in their hay day? Salaries became way out of line with the skill level provided. Result - the UAW priced themselves out of many jobs. Fast food workers would soon find out $15/hour is way too little. Next demand would be $20/hour, or $25/hour. Burgers would cost $10 or more. Business would plummet, workers would be laid off or fired. The once thriving industry of fast food, which employed so many young people starting out, would die a slow death.
So the next time someone talks to you about paying a "livable wage", ask them to be specific. Since the median income in the United States for a family of four is $50,000, a "livable wage" would then be $25/hour. By the way - ask someone raising a family how easy it is on $50k/year. Most will tell you it is pretty tight.
The tried and true method of making a good wage has not changed much. Get as much training and education as you can, find a good place to work, and then work hard. If you don't think you can make enough to suit you at your present place of employment, set your sights elsewhere and look for your next perch. That is the way most of our parents taught us how to make a "livable wage".
Now you begin the slippery slope. Remember the UAW in their hay day? Salaries became way out of line with the skill level provided. Result - the UAW priced themselves out of many jobs. Fast food workers would soon find out $15/hour is way too little. Next demand would be $20/hour, or $25/hour. Burgers would cost $10 or more. Business would plummet, workers would be laid off or fired. The once thriving industry of fast food, which employed so many young people starting out, would die a slow death.
So the next time someone talks to you about paying a "livable wage", ask them to be specific. Since the median income in the United States for a family of four is $50,000, a "livable wage" would then be $25/hour. By the way - ask someone raising a family how easy it is on $50k/year. Most will tell you it is pretty tight.
The tried and true method of making a good wage has not changed much. Get as much training and education as you can, find a good place to work, and then work hard. If you don't think you can make enough to suit you at your present place of employment, set your sights elsewhere and look for your next perch. That is the way most of our parents taught us how to make a "livable wage".
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