Constructive gadfly
And The Two-Income Syndrome
Published on September 14, 2004 By stevendedalus In Politics

The current median income for a family of four is about $55,000 or approximately three times that of the poverty line at $19,000 for a family of four. The problem with these statistics when trying to arrive at a “living wage” that often is juxtaposed to the horrific rate of $5.15 an hour or $10,500, which if adjusted for inflation should be at $7.50 or $15,000, is in the difficulty of determining how much of the median and the poverty line owe to two salaries. If those at the four-family poverty line consists of two-incomes at the minimal wage the income would place the family at above the line by $2,000 or a total income of $21,000. This example, however, does not consider the costs of child care, whether governmentally assisted or out of pocket. Nor does it take into account the erosion of parental quality under such duress. For the median $55,000 may constitute some cushion for child care but leaving little room for building wealth or “ownership.” Moreover, the payroll tax, respectively, $1400 and $3500, substantially reduces the subsistence level of both groups. As for the income tax, chances are the minimal level will not be taxed at all, and those frozen on the median will be helped somewhat by having dependents; in spite of this, the move to “ownership” is out of the question.

If, however, the minimum wage rose the necessary 8.7%, it would also affect the median by perhaps an additional 5% so that the low level increased some $1800 and the median some $2700 and from there adjusted for inflation annually, some progress would be made on the road to ownership, but more importantly would increase the rolls of the middle class. This, of course, does not address the shame of the two-income family where it directly affects the degradation of raising children. Only those above the median can find the right child care through comfortably retired, or one-income grandparents or professional nanas. For the rest, most leave to chance the well-being of their children.

        

Copyright © 2004 Richard R. Kennedy All rights reserved. Revised: September 14, 2004.

http://stevendedalus.joeuser.com


Comments (Page 5)
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on Sep 15, 2004

I actually do possess the necessary skills to make a good income. But if you do some research you will find that there are millions of Americans with good skills who still can't find a job that pays well.


I doubt raising the minimum wage would help these people, unless all they make is minimum wage.

on Sep 15, 2004
I've thought about it, and if 5.15 isn't enough for one person, then I doubt that 8 dollars will be enough for a family of four. Since the minimum wage is seemingly used for families of four, it should be raised to 20 dollars per hour. I think only then would a family of four actually be able to survive comfortably.
on Sep 15, 2004
As stated previously:

It should be a recognition that a minimum wage increase is only one small step that needs to be taken toward finding ways to ensure that all Americans aren't in a constant paycheck to paycheck struggle.

This discussion is about more than dollars and cents. It's about what constitutes an ethical society. In a society that has the means to provide for all people at a decent level, what conscionable argument can be made that we shouldn't?
on Sep 15, 2004

This discussion is about more than dollars and cents. It's about what constitutes an ethical society. In a society that has the means to provide for all people at a decent level, what conscionable argument can be made that we shouldn't?


It's easier said than done and the road to Hell is paved with good intentions?

on Sep 15, 2004
It's easier said than done and the road to Hell is paved with good intentions?


So what road are bad intentions used for
on Sep 15, 2004
You know this? What small business do you run? What is your data to back up this claim? Why $8? Why not $9? Or $10? Or $12? I always find it funny when people who don't run businesses start trying to say how much someone can afford to pay for a given service.


Taken from this Link.

Despite the fact that contemporary economic research casts a long shadow of doubt on the contention that moderate minimum wage increases cause job losses, opponents still lead with this argument. This so-called “disemployment” argument is particularly difficult to maintain given two relatively recent developments in the history of minimum wages. First, the quality of empirical minimum wage research rose steeply over the last decade, due largely to economists’ ability to conduct pseudo-experiments3. Such experiments, rare in empirical economics, typically utilize the fact that numerous states (12 as of today) have raised their minimum wage above that of the federal level. This variation between states gives researchers a chance to isolate the impact of the wage change and test its impact on employment and other relevant outcomes. As stressed in the Card and Krueger book cited above, these studies reveal employment elasticities that hover about zero, i.e., they solidly reject the conventional hypothesis that any increase in the minimum wage leads to job losses among affected workers.

Second, following the most recent increase legislated in 1996, the low-wage labor market performed better than it had in decades. The fact that the employment and earnings opportunities of low-wage workers grew so quickly following that increase continues to pose a daunting challenge to those who still maintain that minimum wage increases hurt their intended beneficiaries.

Recently, the Fiscal Policy Institute (FPI) released a study of the impact of higher minimum wages on small businesses4. Their analysis focuses on various outcomes for businesses with less than 50 employees, comparing these outcomes between states with minimum wages above the Federal level and those at the Federal level. If the theory that higher minimum wages hurt small businesses is correct, then we would expect there to be less growth in such enterprises in states with higher minimum wages. In fact, as shown in Figure 5, the opposite is the case.

• Between 1998 and 2001, the number of small business establishments grew twice as quickly in states with higher minimum wages (3.1% vs. 1.6%).
• Employment grew 1.5% more quickly in high minimum wage states.
• Annual and average payroll growth was also faster in higher minimum wage states.



on Sep 16, 2004

you can't live in southern CA and NOT have a car


wanna bet? 

several times a year i think about buying another car, but not seriously.  not owning a car means that i walk at least a couple miles each day--which is a good thing  (i havent been using my 10speed since the big bicycle gymnastics exhibition in 99 featuring a 1-1/2 with a twist over the handlebars and across 4 lanes of traffic ).  i dont spenda lotta time driving aimlessly around.   i dont have to hassle with registration, gas prices, insurance or parking tickets (not to mention, thanks to burger and rehnquist gutting the fourth amendment, a vehicle is THE  fast track to jail).  ive owned all the cars ive really wanted with the exception of a 60 tbird (should i find the right one of those, i might be very tempted).  i also dont have to feel like im wasting money if i dont do my own vehicle repairs...or like a total moron if i do. and i dont have to obsess over that inevitable first ding.


LA's mass transit system is easily the worst ive encountered (even in small cities) but if you wait long enough eventually a bus shows up.  

on Sep 16, 2004

Perhaps people complaining that you can't raise a family on minimum wage shouldn't be having kids in the first place. It would have the practical result of weeding out unsuccessful genes from the the human gene pool.
Be careful you're in a dangerous abortion alley: the Christian Right might hear you. 

Too many people look to others to fix things for them. If these same people would choose a livable lifestyle for themselves, whether by relocating, sacrificing vices, and quite simply not living outside of their means, they might find it easier to get by than they think.
Good advice, Marie Antoinette!

on Sep 16, 2004
So then the same people whose half-baked ideas led to outsourcing then blame "big business" for it. The Stevendedalus's of the world won't take any responsibility for the end result of their advocacy because they have "good intentions". Whereas people like me, who are forced to be the grinch in order to save these jobs, are villified.
Do I detect traces of Captain Queeg? The continuing negation of the working class by conservatives is going to result in very bad intentions of workers taking to picketing and disruptions; it's happened before. I suggest that a little respect for workers who hold the nation together should be at hand rather than derogated. It is not the likes of me that won't take responsibility but rather the precarious lack of responsibilty and gratitude from the corporate class that reaps outrageous reward by virtue of a nation that leans over backwards to protect the affluent. 
on Sep 16, 2004
Abe, great research.
on Sep 16, 2004
Stevendedalus, can you please explain to me why the first solution should be to raise, by law, the minimum salary they make, rather than expect an effort on their part to resolve the situation themselves, independent of government intervention? If it is possible and doable, and has been proven as such, why should the government intervene for those unable who choose not to help themselves when others in the same situation can, and do, do so?
on Sep 16, 2004

Reply #67 By: kingbee - 9/16/2004 12:13:14 AM
you can't live in southern CA and NOT have a car



wanna bet?

several times a year i think about buying another car, but not seriously. not owning a car means that i walk at least a couple miles each day--which is a good thing (i havent been using my 10speed since the big bicycle gymnastics exhibition in 99 featuring a 1-1/2 with a twist over the handlebars and across 4 lanes of traffic ). i dont spenda lotta time driving aimlessly around. i dont have to hassle with registration, gas prices, insurance or parking tickets (not to mention, thanks to burger and rehnquist gutting the fourth amendment, a vehicle is THE fast track to jail). ive owned all the cars ive really wanted with the exception of a 60 tbird (should i find the right one of those, i might be very tempted). i also dont have to feel like im wasting money if i dont do my own vehicle repairs...or like a total moron if i do. and i dont have to obsess over that inevitable first ding.


LA's mass transit system is easily the worst ive encountered (even in small cities) but if you wait long enough eventually a bus shows up.


I'll take that bet! You obviously live inner-city (LA) Just try doing the same thing in San Diego! It AIN'T happening!!!
on Sep 16, 2004
You know something "kingbee" I fell into the mindset most people from San Diego do. IE: They don't consider LA to be part of "southern CA". Even though you and I BOTH know that geographicaly it sure is in south CA. But seriously if you live in San Diego county say in Lakeside or Santee or El Cajon your trip to work can run anywhere from 20-40 miles "one way"! Especially since most of the work is in north San Diego county. And I don't know too awful many people who could make that trek on a 10 speedOR walk it for that matter. And having used CalTrans in San Diego before, to get to work usually means getting up 4 hours early to be able to get a bus and get to work on time! The trolley helps but it's not enough!
on Sep 16, 2004
If it is possible and doable, and has been proven as such, why should the government intervene for those unable who choose not to help themselves when others in the same situation can, and do, do so?
You're assuming that all of those disadvantaged possess the innate wherewithal of those under the same circumstances have. Not everyone can win the lottery. Omitting the lazy and the don't give a damn few--in all classes, by the way--there are honest people who are in distressful situations requiring a compassionate government to ease the burden.
on Sep 16, 2004
If the minimum wage had increased at the same rate over the past 7 years that CEO salaries have increased, the minimum wage would be over $15 an hour.
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