Saturday, December 7, 2013

WHAT THE (bleep) IS THE POVERTY LINE ANYWAY? Raise the minimum wage


Thanks to Healthcare reform, understanding the poverty line has become more of an important bit of information. These charts have always helped to determine other aspects of the tax code and of government benefits like the Earned Income Credit, and they are being used to determine qualify America for health subsidies..

Unfortunately, these charts have also reawakened the reality that we are ALL dangling on the edge of poverty.  Even those who don't find themselves on these charts realize that missing a check or two could  devastate most any family in America.

Is it time for us to raise the federal minimum wage in order to aggressively reduce the welfare state or will America always have to back-end support citizens that are struggling to choose between buying food or paying bills?

Most cities have developed food pantries to offset the loss of Food Stamp/SNAP benefits because the demand for these services is clear.  The automatic 5 billion in cuts due to the sequestor (pre-arranged/time limit spending bill) is being followed by another 8 billion in proposed cuts to Food Stamp benefits.  Republicans are so desperate for any kind of win against Obama that they are willing to get it on the back of women and children and the elderly.  Even the farmers got caught up in sequestor cuts and anxiously awaited the 'do-nothing' congress to pass a Farm Bill.  These two areas of cuts are likely to show the greatest damage at the grocery  store increasing the need for better wages.


 2013 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA
Persons in family/household income
1- $11,490 (less than full time min. wage)     2- 15,510 (full time min. wage)
3- 19,530                                                    4- 23,550
5- 27,570                                                    6- 31,590
7- 35,610                                                    8- 39,630
Poverty guideline For families/households with more than 8 persons, add $4,020 for each additional person.

2013 POVERTY GUIDELINES FOR ALASKA
Persons in family/household Poverty guideline
For families/households with more than 8 persons, add $5,030 for each additional person.

1- $14,350   2- 19,380   3- 24,410   4- 29,440   5- 34,470   6- 39,500   7- 44,530   8- 49,560 

2013 POVERTY GUIDELINES FOR HAWAII
Persons in family/household Poverty guideline
For families/households with more than 8 persons, add $4,620 for each additional person.

1- $13,230   2- 17,850   3- 22,470   4- 27,090   5- 31,710   6- 36,330   7- 40,950   8- 45,570

Opponents of minimum wage hikes often say that increased wages will be countered with increased prices, yet prices are driven by a supply and demand model and have regularly increased, hence the term inflation.  Wages have never kept pace with  inflation and they are unlikely to do so now even with a wage hike, yet consumer spending is now directly impacted by the decline in wages. Sadly, employers have little incentive to raise incomes in a poor job market full of potential job candidates.

This is usually where the rubber meets the road when you talk about the Free Market philosophy.

The model is sound in principle.  In fact, it typically works perfectly, until human nature gets involved.  When times get tough, the tendency  to squeeze a trickle into a drip leaves the worker at the mercy of human morality.  A rising tide will raise all boats, so long as we insure that everyone has a boat and that those who have a boat do not start taking on water from the degradation of wages.

Unrest is being reflected in the 99% and Occupy Wall Street movements last year and the multi-city fast food worker strike more recently. The death and life of Nelson Mandela reminds us all of the last great movement that actually achieved it purpose.  The Anti-apartheid movement became one of solidarity because together the world forced a change that would not have happened any other way.

Pope Francis has spoken on a living wage, Obama agree's and Madiba reminds us of the power in solidarity. Together we can demand a living wage, but only if we insist on making our voices be heard.  The rapid decline of power in our labor unions has indirectly allowed for wage stagnation.  Whether unions recapture their voice or not, the voice of the working man must be heard.

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