Living on $7.25 an hour, the minimum wage rate, is almost impossible. For the first time since the Great Depression, the United States middle class family income has lost a lot of ground. The sad truth is that rewards for productivity and hard work, like retirement security and health care coverage, are on the rocks.
The wage increases over the past 15 years have gone to the wealthiest 10%, according to the economic policy institute. Since 2009 to 2012, the first three years of recovery from the recession, 95% of the income gains went to the richest individuals in the country. There is something wrong with this, and the minimum wage has lowered our pay and our working standards for all Americans.
If the minimum wage had just kept pace with inflation since the year 1968, it would have been $10.77 an hour today instead of $7.25 an hour. The tipped workers rate been stuck at a scandalous $2.13 for the past 20-25 years. Due to this, Congress is considering a proposal called the fair Minimum Wage Act.
The Minimum Wage Act would help raise the minimum wage for the next 2-3 years to $10.10 an hour and let it grow with inflation. This act was supposed to happen the week after Thanksgiving. If there is a raise in the minimum wage it would give 30 million workers a little more money to pay for their rent, food and other needs.
Forbes’ Magazine interviewed a Mrs. Iverson, a woman living on the $7.25 minimum wage. Mrs. Iverson makes about $400-600 a month, and her monthly rent is at $650. It is almost impossible to pay rent on those wages. She stated, “I’m kind of on my last leg because I’ve been late on rent. I’m behind three months.” She sometimes can pay the rent and at others times she can’t, and does not make enough money to pay her bills and buy anything for her kids. She also relies on $543 worth of food stamps to feed her four children.
Congress can do so much for Americans living their lives without enough money to maintain their families. But one choice is clear and easy and can make a difference right now. Raise the minimum wage, including the outrageous rate for tipped workers, and index it to inflation. We cannot allow America’s lowest-wage workers to continue to fall behind. Let’s give people a hand, because this situations affects us all.