Minimum Wage vs. Living Wage

Maybe once this election is over, I'll stop all these political posts. But right now I have the proverbial "bee in my bonnet," and I can't help myself.

We've all been hit by the tough economy. Gas reached the $4 mark in some areas, milk is hovering around $3.50 here in Nashville, and every time I visit my salon, it seems the price of a haircut has escalated. So, why don't I support Barack Obama's plan to raise minimum wage to $9.50/hr. by 2011?

First, let's look at the current minimum wage: $6.55 since July 2008. A person working 40 hours a week for a full 52 weeks (hopefully getting a week or two of that in paid vacation time), would earn $13, 624 before taxes. I certainly don't disagree that a family of four can't live on that wage! (But I will counter that in 1994, when I moved here, my first full-time job paid only $12,240/year, and within three years I was a homeowner--on my own and without financial support.) Still, Obama's plan would earn that same worker, working the same hours, only $19,760. And, of course, this will be in 2011--no telling what inflation will have done to us by then! My point is, this increase won't do much to help families being supported by one person earning minimum wage.

Minimum wage is just that: the minimum. And, I propose, it is designed for "minimum" employees. It is meant for low-commitment jobs with little or no training, where the expectations are low. And there's nothing wrong with that! If I were still a teenager and wanted some spending money for the weekends, I'd probably seek out a minimum wage job. Or if, say, I was retired and wanted something to keep me busy for a few hours each day without a lot of stress or commitment, that would be a great fit. And, hey, if I liked it, and I did it pretty well, I would expect to be compensated a bit more as I got some experience under my belt. But, still, I'd be in it for the short-term. When it stopped being fun or profitable, I would walk away.

Minimum wage jobs are not intended for the primary bread-winner of the family! It is not meant to provide the so-called "living wage." And if you're next counter-point is about those who can't afford an education, let me stop you right there. There are decent-paying jobs out there, even for the under-educated, if they're willing to work. And I don't necessarily mean tough labor, either. I mean, if they're willing to work on themselves--to smile, be friendly, use good manors, study, etc. For example, who makes more money, the server who grumbles about their station in life, is unwilling to make an extra effort, or the one who smiles and speaks warmly, and does whatever it takes to make his or her guests happy? Duh! If you're working for tips, this is a no-brainer.

Still, outside of restaurant service (which, by the way, IMHO is under-paid, as the federal minimum wage for servers has been stuck at $2.13/hr. since 1991), there are other industries that reward effort. Sales is a great example--and the US average income for a sales rep or manager is around $48,000/year! No degree needed. Food prep is another area where skill and ability can often trump education and experience (who cares, as long as it tastes good, right?). The national salary average for a food prep supervisor is a respectable $35, 964.

Here are some other jobs that don't require degrees (although some require training), but pay rather well:

• Air Traffic Controller ($102,030/year)
• Storage & Distribution Manager ($66,600)
• Sanitation Worker ($32,000-59,000, depending on experience; $65,000 in California)
• Funeral Director ($79,517)
• Police or Detective Supervisor ($64,430)
• Transportation Manager ($66,600)

And, as an aside, although I usually take advantage of free babysitting from family members, when I do pay a babysitter, I pay $10/hour--more than Obama's proposed change for 2011--because I don't want a "minimum" babysitter.

To sum up, if you want to earn a living wage, you need to be more than a minimum employee. Do your homework, make the effort, and seek gainful employment in a field that can provide for your needs. Even then, I know many families have financial struggles (I could go on and on about living within your means, but that's another post entirely). But struggle is the sign that someone is trying . . . trying really hard to get ahead. I can respect struggle. I can even support it.