| What is a Living Wage? |
According to the most recent census*, over 30.7 million americans are currently on a state of federally defined poverty. According to Bill Quigly, esteemed professor of law at Loyola University in New Orleans, "There are approximately thirty million people in the United States who are working full-time but earning poverty level wages" (Quigley 3). So many americans are working in full time jobs, yet remain poor. What is really going on here?
One of the largest factors into the high number of federally defined working poor americans is the problem with minumum wage. The current federal minimum wage, $5.15, has not been changed since september of 1997. There has not been a bill passed which raises the minimum wage to even keep up with inflation. Inflation contiunues to rise day by day, yet minimum wage is stagnant. This means that the minimum wage worker is earning less per hour every single day. Rent rises, food costs rise, gas prices rise, and virtually every item involved in basic living is inflating. However, minimum wage is not rising to cover these costs.
The obscenely low minimum wage is not just difficult and unfortunate for the worker, but expensive to society as a whole. Americans have traditionally valued the well-being of society and its members. Ever since the end of the Great Depression and the war on poverty of the 60s, hundred of federal programs have been in place to take care and support society's members. From food stamps to welfare to education to social security, America's taxpayers pay billions of dollars to take care of one another. When our citizens can not make ends meet, they turn to the government for help. This is extremely expensive. If people could support them selves out of thier full time jobs, our tax dollars would not have to. However, people obviously cannot support themselves at the going rate.
A living wage policy is a proposed way to fix this problem. A living wage should be reviewed yearly, accounting for inflation. In its most simplistic sense, a living should keep someone above the poverty line. In 2002, this wage was $8.71 (Quigly 7). However, the living wage varies by region, and naturally so, as some areas of the country (California, New York City) are more expensive to live in than others (Montana, Kansas). A living wage also should ensure that the worker only needs to work one full time (40 hours a week) in order to make ends meet. This should include paying for food, housing, and healthcare benefits (if not already included in the job). Unions usually help to determine living wage as well.
San Jose was one of the very first cities in the country to pass livng wage legislation*.The city decided to pay all of its workers a living wage in November of 1998. This wage was $9.50 at the time the legislation was passed. The living wage is reviewd once a year, and during the most recent review*, the wage was raised to $11.61, excluding healthcare benefits. According to Santa Clara Policy* workers of Bon Appetit are paid in accordance with the living wage of San Jose. But Are They?