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Minimum wage slowly creeps higher

by Matt Simon | July 23, 2008 at 9:32 am
Posted in baltimore news, money, news

If you’re an hourly employee making Maryland’s minimum wage of $6.15, you’re getting a raise.

But, don’t expect it to matter much. Instead of making $6.15 an hour, you’ll now be making $6.55 an hour. Let’s look at that a different way.

You’re still basically in poverty, as defined by the federal government. The poverty level is set at $10,000 a year for an individual. At these new rates, you’ll be making $13,624 in a 40-hour work week — just $3,624 more than you’d be making in poverty. And that’s if you take absolutely no time off.

If you take a two-week vacation, you’ll be making just $3,100 more than the federal poverty level. Gee, thanks.

The 40-cent increase in the minimum wage will affect about 64,000 Marylanders, according to Southern Maryland Online (click).

You know what businesses always say about minimum wage increases. Something like, “It’s going to force me to lay off some workers because I won’t be able to afford the wage increase.” And you know what workers always say, “I’m grateful for it. Every little bit helps.”

I know times are tough, but if a wage increase of 40-cents per worker is going to break your business, you’re probably going under anyway.

I’m not exactly overwhelmed with happiness to see my fellow Marylanders work some of the worst jobs in the state to just barely be out of poverty at the end of the year. Let’s not kid ourselves. While this is a good step forward for workers across the country, it’s more appeasement than a real solution.

Let’s not forget where this minimum wage increase came from. Last year, it was passed by an overwhelming vote in the Senate — 348 to 73 — only because it was tied to a major funding bill for the war in Iraq (click). It was the first raise in about 10 years.

As a part of the bill, the minimum wage will be increasing to $7.25 next year.

A 40-cent increase. Does it matter?


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3 responses.

  1. If you're making minimum wage it matters tremedously - that's roughly an extra $32 bucks per paycheck. If you're good at being poor, you can eat for a week on that and have enough left over for a splurge item.

    I worked a minimum wage job out of college - I wasn't sure what I wanted to do when I grew up yet. It was the worst year of my life...there's nothing less satisfying than working 80+ hours just to recieve a check that barely covers the rent and food. I can only imagine that over time people learn to live with that feeling and eventually it just becomes rote.

    Also let's not even begin to factor in what happens if you get hurt outside of work - most employers that pay minimum wage do not offer health insurance. So you're always one rotten tooth or sprained ankle away from eviction.

    On the flip side I'm not sure there's any solution to this problem...and maybe there shouldn't be. If everyone wanted to be a doctor or lawyer, our society would crash. We need worker bees...and honestly some people are content to be just that.

    By the way...people who make minimum wage rarely take a 2-week vacation...or any vacation for that matter.

    !

  2. I never cheer when the min. wage in increased unless it is in relation with inflation/economy/increase in food,gas,housing. Those increases took $10 from us and our min. wage increase gave us an extra $.50 to deal with it.
    Chris Rock had a great quote about MW a long time ago. "When a boss pays MW he's saying 'If I could pay you less I would, but it's against the law'"

    And if you have a family and are on MW you are probably on more than 1 MW jobs. That suck even more.

  3. agreed, huge difference.

    after graduating college and before my first "big girl" job, i was working at two places in the mall, one for min. wage and the other one only slightly over.
    working over 40 hours a week, that little extra bit made a difference since I was using most of my earnings to pay student loans and various bills.

    minimum wage is still outrageously low, though. i can't imagine how hard it is to TRY to live off of.