What is a real "Living Wage"?

Question

This will vary depending of where you live, but my definition of a "living wage" is an income that can pay for the basics. Not having to decide to eat or pay rent. That means a modest but clean and functioning apartment or house, making dinner rather than eating out a lot. Also being able to afford a decent, but not expensive vehicle that get's a person to and from work without being in the repair shop all the time. Being able to at least buy a new outfit for an interview at Wal-Mart, not nessicarily Macy's (unless they have a good sale) I would say in Indiana, a living wage for a one to two person household is 10-12 an hour. Mandated minimum wage is 5.15 and most employers pay around 7 just to get people to take the job. What about your area?

Answer 1

I haven't lived in Indiana, but I did live in Ohio, and I don't believe the cost of living is much different between the two. I'd say 40 hours a week at $9-10/hour is a plain vanilla "living wage", almost "semi-comfortable".

Even living in New Orleans now, which has an absolutely ridiculous cost of living compared to prestorm because the remaining utility/service companies, and current landlords, are exploiting the unusually high demand/lack of choices of the residents, I can just barely get by making $8 an hour, 40 hours a week. But just barely. That's factoring in food, gas, rent, utilities, insurance, etc.

Let's say a simple apartment near Indiana University costs around $400-500 bucks. If a person was making $8/hour, 40 hours a week, They're making around $1100 bucks a month after taxes. So that leaves you roughly $600 to work with. Let's guess at $100-150 for utilities, water and electric. That leaves us $450 to $500. $50 on gas, around $400-450 left. Another $50-100 for food, leaving you with $350-400. The car part becomes tricky, especially when you factor in insurance. I have a '99 Sentra, which cost me $5,000, and it gives me very little trouble, but depending on your area the interest rates can destroy you.

That's how I define getting by. Because it fails to take into account things that are bound to come up, like medical bills, or the idea that "man cannot live on bread alone", this is why people like me who make $8 often take up a second job. But it also doesn't factor in ways you can save money, like having roommates.

So I guess I'm agreeing that $7 is not a living wage, but submitting that $9-10 is.

Answer 2

I think a min wage should be at least $10/hr. Believe me, that will just cover the basics. Think of last year's heating bills! I could get by on that (I live in a metro area), but as you stated, at that income I'd most likely be able to afford a pair of slacks and an oxford shirt from Wal-Mart for an interview, but I wouldn't be able to set foot into somewhere like Hechts or Macy's, let alone Banana Republic.

It would affect my diet greatly, since I'm vegetarian and buy organic-that would not be an option, nor would going into Borders and buying a few books each month.

Yeah, I could get by, but it wouldn't be a great life.

Answer 3

I live on the border of Oregon and Washington, in the city of Vancouver. All around we see tall Evergreen firs. Some that still exist from the days when there was an outpost here on the Columbia River, owned by the British as a fur trading company. It was known as Fort Vancouver, even long after our own military arrived,and renamed an area, Vancouver Barracks. There has been an American detachment here since those days. Although now, the buildings in the barracks area are being utilized by non military for housing and a restaurant. The 4th of July fireworks are the best in the west here and people come from all over to see the display from the riverfront, on each side of the Columbia. We who live here, feel this is Gods' Country. From the tallest of the snow capped mountains in the distance, to the thick forests that stretch to the shores of the Pacific Ocean. The climate is moderate, with very little snow in the valley during winter, and summers are usually moderate. Although we have seen some very warm days during summers' where it reached the 100f mark in the past. We also hear of crime on our streets. But the ratio is far less I've read, than the city across the river, Portland, Oregon. At least, we don't hear gunshots at night, as we have heard living in one Portland area in the past. And Meth seems to be a contagious crime spreading to even our neighborhoods of modest looking houses,with children playing in the yards. It's always a surprise to learn that the young couples that make and sell this, always have children. This is considered to be a great place to raise a family. The air is clean, as is the water, and there are farmers' markets available during summer and fall. Vancouver used to be a farmers town. And farmers would bring their produce to sell here. It has had a small town feel and continues to do so. We know that the big city is across the river, but most of us never leave when we have everything here. We don't have a state tax, but we do have a sales tax. Many live here and travel to Portland to work. Since we retired before moving here, we haven't had to worry about driving across to Oregon to work. We seem to have it all here. We can drive to the beaches in little over an hour. Or we can drive to the mountains in about the same amount of time. Or we can stay right at home, and enjoy the serenity of our own back yards, and barbeques, and not worry about driving where there might be traffic. And we do know we can drive anywhere out of the city limits and enjoy the great scenery of waterfalls, along the Columbia River Gorge. Or to the density of a forest to take a bath in a hot spring. We can enjoy our choice of three casinos on Indian reservations, and we can pick up pebbles on many a beach. But as seniors, we prefer to be stay at homes, and relaxing where we are. And home is where the heart is, after all.

Answer 4

Where I live (St.Louis) they just raised the minimum wage to 6.50 but for a two person household I think you need to make at least 13 dollars an hour to pay all your bills and still be comfortable.