Why is the US federal minimum wage so low and how do people survive on it?

[Kayla45]

Something I’ve noticed about the US is starting pay for entry jobs seem to be very low, even lower than 10 USD an hour, this seems unlivable to me? How to y’all survive?

[Chazmatazz269]

It’s true, but states can establish their own minimum wage laws. Two-thirds of states’ minimum wage are higher than the federal minimum wage. Only five states have no minimum wage, and their employers are forced to default to the federal standard.
In most cases, even many states’ minimum wages are below poverty level for full time workers. One problem is that the minimum wage is a flat standard. So it applies to part-time workers as well. Beyond that, some states even have minimum wage exceptions for workers who are subject to tipping. This cuts their hourly scale by half, sometimes more. I think forcing customers to subsidize an employer’s lousy business model should be illegal.
I also think there should be additional wage laws implemented to ensure that anyone working full time can afford housing, food and healthcare in the same area that they work, all on a single full time job. Nobody should have to work multiple jobs and still barely scrape by.

[Lliam]

I suspect that a big reason is corporate lobbying but some people are concerned that it would hurt small businesses.

There is also debate over whether wage mandates should be set on a national scale or left to individual states and cities to reflect local costs of living.

Democrats tend to favor rate increases while conservatives oppose them.

In reality, a person can't survive on the federal minimum wage.
$7.25 per hour = $1,168 per month if a person works full time. Take home pay is less due to taxes and Social Security.
That isn't enough for a cheap apartment, utilities, a car, fuel, maintenance, insurance, food, and other basic expenses.

The minimum wage should be tied to inflation but it hasn't increased since 1979.

[Agape93]

1. Because those in charge dont want to be made to pay you more.

2. You can't. There is literally no where in the country where you can buy a home or rent a place on the minimum wage. Nowhere, unless you want to live in a literal crackhouse

[Abbycado]

They are really low. It is what drives so many to service industry for tips.

[NathanDavis]

the main reason why it remains so low... to the FEDERAL level is that you cannot really expect all of the different regions in the USA to have the same economic status, if you go by the "poorest" region then that might cause for other regions with higher costs to get paid less... and if you go by the "richest" regions, then all of the other won't be able to keep up with it...

so, that's why... State and even local numbers are applied and followed... according to the local economy situation

you can't really "enforce" the economy at the "free market" nation, lol... that would be a disaster for many people

[RavVid]

In Canada there was a Starbucks opposite to where I was staying, for work, and early in the morning there seemed to be people warming up. They seemed to have a staff member whose primary job was to go round shaking people awake.

Some more clearly homeless people were sleeping in ATM enclosures.

In the snowy areas of North America, it would seem life could be very fragile.

In my part of Australia, I am just 2 degrees north of the Roaring Forties so it can indeed get cold in winter but not life threatening cold. Homelessness is mostly a choice.

In NA it seems if you lose your job, your life can take an ungraceful decay down

[CaptainObivous]

It's so low because the federal government has't raised it in decades, tho some states have their own minimum wage which is higher then the federal minimum wage. A lot of people don't survive on minimum wage, the one's who do, do it by government help and working multiple jobs.

[OneViewpoint]

How do people survive on minimum wage? Not well.

• A primary job plus a 2nd or 3rd minimum wage job to get 60 to 80 hours per week.
• Public assistance programs like public housing, rent controlled apartments, electric bill subsidies, SNAP, welfare, etc.
• They do without a lot of things most people take for granted.

[OneViewpoint]

As to why it's so low... stupid people keep believing the propaganda of the 1% and vote against unions or any legislation that would raise the minimum wage. Corporations and billionaires have owned the US government for decades.

[Ill_made_Knight]

You can't live on $7.25. That's the minimum wage in my state, Work 2 jobs, 3 jobs, side hustles...
Go without healthcare or a place to live, live in your car if you can manage to get one of those. AND be told by tRump supporters that you'd be able to make it if you gave up avocado toast. The US is broken.

[exitseven]

The federal wage is $7.50 / hour. It has not changed for decades. Most states have higher minimum wage and in most places even entry level jobs at Burger King pay more than that. A new Chik Fil E opened in the town I live in advertises $22.00 to start.

[MysticDevice]

Its crazy. Its just that living costs are rising faster than what anyone can keep up with.

I've never seen a job posting in my state for less than 16usd an hour. Wages are at least actually starting well above minimum wage and are going up, but veeerrryyy slowly and only by cents at a time.

We're all VERY unhappy about the situation.

[Still-alive]

Because we have too many idiots running around convincing people that if you raise the minimum wage that means inflation will skyrocket.

People don't survive on it. instead they take 2 or more jobs just to make ends meat. yeah its pretty fucked in our country. At least here in california we are attempting to raise it, but its still not enough to make a living.

[Still-alive]

www.epi.org/.../

[DryGermanGuy]

For the same reasons, average Americans get to eat the cheapest and nastiest food possible: Almost unchecked and uncontrolled capitalism.

[msc545]

The US minimum wage is so low because business interests have kept it that way so they can lose as little profit as possible from having to pay workers. Business leaders hate paying for labor, which is why AI is so popular right now.

[RichardCranium6201]

They don't. They don't want you living comfortably... they don't want u buying anything. Not even food

[strateguy632]

rent with partners flat-mates like in college and like all other singles do.

[AgentG111]

The answer is in the question federal minimum. Not livable wage. Mainly for Highschool/Part time workers who are temps or just need spending money. Or those in a service industry that get tips.

[Chazmatazz269]

Nonsense. There are tens of thousands of employers paying their adult, full-time employees minimum wage or less.

[AgentG111]

@Chazmatazz269 I didn't say there wasn't. Just stating what it is set for doesn't mean that adults can't work or take those jobs. Those whom work hard and move up or gain knowledge and experience can get more money by learning more duties and tasks or moving around and forward in the company. If you give everybody the same amount of money then no one wants to work to better themselves or their company.

[Chazmatazz269]

In too many states and certainly at the federal level, the minimum wage is well below poverty. No adult working full time should struggle to make rent, buy food or afford basic healthcare. Especially when the greedy pricks at the top are making MILLIONS, and spending BILLIONS to oppose fair labor legislation.
Nobody said anything about “paying everyone the same”. You DID say that minimum wage is ONLY for part-time help and kids. That’s categorically false. The minimum wage was established because employers were literally cheating people out of their earnings because there was no law that said that they couldn’t.
There’s always plenty of money to be made. Only the fat cats don’t want to spread the wealth around, even when that is best for the company and the country.

[DirtyOldMan777]

The minimum wage is just a legal amount employers can't go bellow. If employers are at that level, leave and find somewhere else.

[Anonymous]

Federal jobs ard great if you can get in long term is why

[Staximus]

The minimum wage has always been behind the times here

[jahaims]

Crime, multiple jobs and government assistance is how people survive.

[canamlusciouslad73]

Greedy overlords and they don't without two or three jobs.

[fishbone77]

Minimum wage isn't intended to be a salary to support an adult on.

[Chazmatazz269]

Nonsense. I defy you to find that officially recorded anywhere. Tens of thousands of companies are paying full-time, adult workers minimum wage or less. That argument is pure ignorance.

[fishbone77]

@Chazmatazz269 what kind of a retard has to have a signed, written legal document to prove that something exists. How stupid.

[Chazmatazz269]

What kind of idiot insists on “facts” that he knows he can’t prove and then resorts to ad hominem attacks to further his argument?
Look in the mirror. You lied. Now everyone knows it.

[fishbone77]

@Chazmatazz269 How did I lie? That's exactly the de facto use of minimum wage.

[lilBigPotato]

Capitalism.

[lilBigPotato]

Companies rather spend millions on lobbying against a raise than using the money to increase the salaries of their workers. How else can the poor CEO afford his 3rd yacht?