Minimum Wage and Living Wage in the US - Case Study Example

Minimum wage VS living wage The research paper consists of an introductory part, main body paragraphs and a conclusion. The introductory part represents background information about current situation in USA and asserts a thesis statement of the paper. Moreover, in this paragraph the problems that will be develop through the main body stay. The main body section concentrates on the proper number of issues. The differences between living wage and minimum wage are instructed in this stage. The historical background of the problem with its authentic origin, contemporary situation and some up-to-date statistics adduces there. This supports by proper data and scientific evidences which is relevant nowadays. Also, some facts about mistaken stereotypical people’s evaluation together with the real situation are reflected in the paper. After that paper contains a strong conclusion due to the problem with my assumptions. The method that is used is particularized examination of a literature together with the critical summarizing and personal inferences on the topic. Keywords: minimum wage, living wage, economy. Minimum wage VS living wage “More than 4.8 million workers now earn the lowest legal pay” (Ashkenas 2014). According to this perspective New York Times elaborates an online calculator for people that distinguishes the minimum wage in any American state, and counts yearly income considering daily expenses (Ashkenas 2014). Computation of minimum wage differs somehow in various states and for wanted information the one needs to choose a particular state. The number of people who oblige to live on minimum wage is completely large, and it refers to the difficulties in economic status affairs in United States of America. We will find a difference between the living wage and minimum wage, and also argue on a current situation in USA and its perspectives. Firstly, the divergence between the notions living wage and minimum wage are to be investigated. There are a lot of cases when people confuse these two terms and hardly understand the difference between them. There are no doubts that these terms often used together and closely correlate with each other, still the discordance exists. Living wage regards as “the ultimate goal in wage policy”, and aims “to provide for a standard of living” that can ensure appropriate conditions for the worker and his family to live in (Ramani, 1995). Respectful medical assurance, reliable education institutions for children, measures of courtesy, comfortable accommodation and healthy nutrition involve this list. Living wage rates imply to the high level of life that seems to be convenient and available to every member of society. Such assurances provide to accumulate basic needs of a person and his/her family on a sufficient level. Moreover, “Employers that sign contracts with government agencies, or receive subsidies from them, must agree to pay the required living wage” (Sessoms, 2014). That is why local governments exploit living wage standardization to persuade people that they are entirely provided by well-paid jobs. Minimum wage represents a difference to some perspectives towards the living wage. We may define a minimum wage as the lowest wage that person need for maintaining him/herself and family in an irreducible level of livelihood (Ramani, 1995). Such rates include clothes, food and accommodation together with some medical assurance and children’s education. Usually minimum wage presents a division into federal, state and citywide minimum wage, according to which the government provides policies and state the minimal rates for people (Sessoms, 2014). Minimum wage is not enough amount of money for creating appropriate conditions for a comfortable subsistence, especially when person has a big family with children and need to provide them with care and solicitude. Government tries to provide policies on the development of this economic sphere and in movement aimed at improving of people’s life. Living wage movements has proclaimed its start since the late nineteenth century and has based on a classical paradigm of economic politics together with the correlation of neoclassical economic theory (Figart, 2004). Scholars in the field of sociology argue that capitalism plays an essential role in the formulation of living wage idea and concept. Today living wage standards preoccupy the basis of labor market salary in the world (Figart, 2004). That is why this notion is on high importance in today’s economic world. Minimum wage programs appear in United States because the position of workers with low salary needs a special attention from government. At its early stages authority protection has provided only to women especially the ones with children. Massachusetts law has started the development of minimum wage legislation in the United States of America in the year 1912 (Nordlund, 1997). Moreover, the legislation has to be different in various states, and the Fair Labor Standards Act has remained to understand these differences and work on ways of its development. Between 1920 and 1930 there has been no special need for legislative activity in the area of minimum wages, still such public organization as National Consumer’s League has related some efforts to the questions of low salary, and provide some improving ideas into this field (Nordlund, 1997). After that period, the age of Great Depression has come, and new president has to endeavor and work a lot for keeping the level of ordinary people’s life on the same degree. On that time the nation has struggled “under the burden of major depression” and has a need for moving economy forward (Nordlund, 1997). A modern living wage movement made its start in Baltimore, United States of America, in 1994 year with the introduction of a new economy in this area. Los Angeles governmental authority has made a proposal to establish living wage minimum rates. The amount of money has suggested $7.50 per hour with an additional $2.00 for the health protection institutions (Pollin, Brenner, Wicks-Lim and Luce, 2008). Such proposition suggests increasing of living wage minimum in more than 40 presents that can noticeably raise the level of people’s life in USA. Still, such points as inflation and economic tunnel are usual for modern world economy and it not always correspond to positive implications in the society. Another problem is the real evaluation of a social layer of people who belong to a group of minimum wage rang. Usually social stratum presumes the ideas that are completely different from the real situation. The stereotypical thinking allows drawing imaginary picture in people’s minds. The problem is that the real picture remains to be worse than people think. Todd Beer (2014) provides such evaluation in his article and suggests the pattern of active social imagination together with the actual situation. The matter is that people depict some points that do not correlate with the relevant affairs. People’s thinking presupposes that the ones who work on a minimum wage job are: Teenagers Live with their parents Acquire part-time job as an after school activity Earn extra money for spending However, the actual situation is quite different, and enforces us to mull over the problem and realize all seriousness. The matter is that people who attend a minimum wage job are: Attain adult age Have children Occupy full-time job Earn half of their families total income The statistic shows that 88% of such people are not teens, what is more 36% of them are older than forty years old (Beer, 2014). The number of woman is completely high, involving female representatives who remain to live in single-parent families. Moreover, for more than half of these people such job is considered to be a full-time occupation. The situation shows unpleasant implications and reflects the misconceptions in the dimension of this problem. The real evaluation of the issue leads to the conclusion that a high amount of adult people who have to live at a minimum wage salary exists. Society and government should recognize and realize these facts due to the adoption of some decisions. Let us move on through the examples. Glink in his article “A minimum wage, but not much of a living” (2013) suggests numbers of the living wages in USA. “A person living alone in Washington, D.C., must earn $13.68 an hour to make ends meet, according to the Massachusetts Institute of Technology’s Living Wage Calculator. With one child, that number jumps to $26.37. In New York City, an adult must earn $12.75 an hour to make a living wage. In Chicago, its $10.50 an hour and in San Francisco, $12.83” (Glink, 2013). The amount of minimum wage is considered to be lower, and families with children suffer from this divergence. There are examples when people have no money to pay for children’s school or accommodation to live. “The real value of minimum wage has steadily declined for the past 50 years. In fact, since the early 1980s, working full time, every week of the year at a minimum wage job has not been enough to keep a single parent (with one child) above the official poverty level” (Beer, 2014). The situation is completely harder for families with children or single-parent families, as living on minimum wage with no other supplementary help is rather difficult. The statistic disposed in the table shows that people may earn no more than $20 000 per year, and it remains to be not a big amount for the comfortable maintaining. Current situation presupposes that politicians together with policy advocates start a new tour of debates based on evaluation and improving problem of minimum wage rates. That is the area that remains to be in the stage of development and improving. All in all, we can come to conclusion that the difference between a living wage and minimum wage exists, and these two notions regard payment from a little bit different perspectives. It is clear that these concepts often use together and provide parallel meanings. Still, living wage is not necessarily minimum wage. There is a percent of people whose living wage coincides with the minimum wage, but this ratio is comparative. While living wage bases on perspective and qualitative subsistence together with appropriate conditions for the worker and his family, minimum wage represents its minimal amount of money to construct irreducible living conditions. Moreover, there are special authorities that deal with the standards for minimum wage and living wage. It is clear that each local area has its own delimitation for a minimal amount of money calculated relatively to one person. These rates change in accordance to the local and global economic situation and political conditions in the country. In addition, there are a big number of people who acquire minimum wage job and have families with children. It should be mentioned that they are obliged to make ends meet in such hard situation. References Ashkenas, J. (2014, Feb 8).Can You Live on the Minimum Wage? The New York Times. Ramani, K.V. (1995). Sociology of Personnel Management and Rural Relations. New Delhi: Mittal Publications. Sessoms, G. (2014). Living Wage Vs. Minimum Wage. Houston Chronicle | P.O. Box 4260 Houston, Texas 77210–4260. Figart, D. M. (2004). Living Wage Movements: Global Perspectives. USA: Routledge. Nordlund, W.J. (1997). The Quest for a Living Wage: The History of the Federal Minimum Wage Program. USA: Greenwood Publishing Group. Pollin, R., Brenner, M., Wicks-Lim, J. and Luce, S. (2008). A Measure of Fairness: The Economics of Living Wages and Minimum Wages in the United States. USA: Cornell University Press. Beer, T. (2014, Feb 9). MINIMUM WAGE: DO WE UNDERSTAND THAT REALITY? SOCIOLOGY toolbox. Retrieved From: http://sociologytoolbox.com/minimum-wage/ Glink, I. (2013, Nov 14). A minimum wage, but not much of a living. CBS Interactive Inc. Read More