Wednesday, September 28, 2011

Working Wednesday: Minimum and Self Reliant Wages

The U.S. Census Bureau recently released a report on poverty in this country. I will be using that report coupled with several other statistics for my comments below:
*46.2 million people/15.1% live at or below the poverty level. This rose for the 4th straight year.
*U.S. unemployment rate is 9.6%. Ohio's August rate was 9.1%.
*14.5% of American households are food insecure--their cupboards are bare on occasion.
*The Census Bureau defines "poor" as any individual living on an income of less than $11,139, or any family of four living on less than $22,314. That measurement was developed over 40 years ago and some feel the equation has flaws.

The Census Bureau is using the U.S. Department of Health and Human Services' Federal Poverty Guideline. The U.S. Department of Labor has its own definition of poverty--Lower Living Standard Income Level. The income rates are very similar to the Poverty Guidelines, but are nonetheless different. That means 2 separate agencies have their own definitions of poverty which is bureaucracy at its worst.

The reason I am leading off with these statistics is to underscore the importance of a self-reliance wage.
There are 2080 hours in a 40 hour work week in a year. The Census Bureau's definition of poor for a family of four means that those working combined in that household are making approximately no more than $10.00/hr. Minimum Wage in Ohio is $7.40/hr.

And thus the discussion begins: do benefits count when considering hourly wage? In my view they do not because they don't contribute to a household income but others argue they help with medical insurance which would be an out-of-pocket expense if it wasn't covered by insurance.

Here is something else: several jobs are a way of life in some areas of the state--a low paying job and odd jobs/freelance work. The combination barely gets the household by but they are counted together to form a "working wage" for the household. The first job is not self reliant. The employer and the employee knows that.  The supplemental source of income may not be odd jobs. It could very likely be the government. Government programs such as "food stamps", "medical card", WIC, and others provide the support the family counts on to make up the difference. This is not self reliance, but again minimum wage does not support a family of 4. Whatever it is, the first job is not enough. There is always a supplemental source of income.

This is a very complicated situation that involves employers, a skilled workforce, a community with strong standards, and everyone understanding what is at stake if they get selfish. Self reliance begets self esteem, self motivation, self discovery and determination. Workers who are trusted give back and companies who are trusted give back too. It is in everyone's best interest to seriously consider self reliance and what it would mean for their community.

No comments:

Post a Comment