A generation lost amidst the crowd. A woman learning to find her way. Through frugality and a goal for financial independence, she will succeed.
Minimum Wage: the unsaid truth
The Argument About Minimum Wage
How many people do you think make minimum wage? Can you count it in a percentage? Do you think that it’s a majority? If it’s a majority, then there’s a problem that our society is not seeking out skill training, and if we, as a country, are not attracting jobs that are higher than entry level, unskilled positions, then we, as a country, are seriously failing.
The value of the dollar varies in the hands of the beholder. This beholder has two college degrees, and is making a lower/mid 5 figure salary. XB and Mr. XB are not blessed with children, so we work hard at our jobs. As a result, we stress out when things go wrong, and give up off-time and weekends to ensure that the work is done and done right.
Side note #1: Ontario recently increased the minimum wage to $14/hour in January, 2018 and scheduled the next increase to $15/hour in January, 2019.
Side note #2: Someone recently said: Take care of yourself, because killing yourself over a job ends in one fact: your position will be advertised before your obituary.
How much is that a year?
A $15 min wage is a $30k/year salary. In Ontario, that means if you are fulltime, you would gross about $30k before taxes, and get two weeks paid vacation a year. This is for a minimum wage job.
College educated people are working in this area for barely above minimum wage, and benefits are a rare commodity.
It appears that we are seeing a push to increase minimum wage jobs (because who will pay much more?), and a push that is decreasing the amount of money that educated people are making, in comparison. Anything above the dreaded “minimum wage” title is supposed to be gravy.
Why go to college?
Isn’t this the question of the decade! Why go to college? What is the point of spending $25k or more on transportation, supplies, text books, food, tuition, time… why do this if all that is offered is slightly above minimum wage, if that?
Until people start realizing that $15/hour is not a fair representation of minimum wage OR …
Is it that those who employ either the minimum wage earner or the college-educated support staff/labourers are so heinously greedy? Or is it time that they started sharing the wealth and start paying their staff a decent wage?
Let’s look at people who are making $40,000.00 a year. This is a “decent” wage to most. But is it? Off the top, you lose 22% on taxes, CPP and EI. That means take-home pay is $31,200.00.
In Niagara, the average two-bedroom apartment in a decent building is $1,200.00/month. A mortgage on a $300,000 house would be $1,500.00. Then you have utilities… say $300/month. Insurance. Taxes. Maintenance. Repairs.
So, is a college education enough to own a home?
$31,200/12 months = $2,600.00. If you have a home that is “modest”, chances are you spent more than $300k. Using this example, I would say it’s fair to assume costs of home ownership, without repairs or any extras, cable tv or internet packages or telephone, would eat up close to $2,000/month. That leaves $600 for food, entertainment, transportation, health care, retirement savings, repairs, replacement of household goods, insurances, etc. Are we not allowed modest home ownership as a single income family?
I can hear the naysayers out there: get a second income, a roommate, etc. Find cheaper housing. Cut the extras.
Why are we allowing people to tell us to live in sub-par housing, have sub-par services, and deal with making less? Where do you live for less today?
Factor in children.
Elderly parents or grandparents.
I no longer think that the problem is minimum wage. If the government is saying that a basic job should pay $30k annually on a full-time basis, then that tells me a skilled, educated person who is support staff or labourer for an employer should make nearly twice as much as the example above.
So… then what?
So instead of saying the minimum wage needs increasing, we should be looking at those who are in the middle. A minimum wage increase of $2.40 (the most recent jump to $14/hr) is a cut for those who make more. We will pay more, as the companies charge more to pay for the increase in wages. We will lose options, because the cost of doing business has increased significantly. Our dollar in our pocket will not go as far. And yet, the wealthier people, the employers, the ones living in houses twice the modest price, and driving cars as much as a third of the modest price of a house, … they say, well, everyone is on salary here, or makes more than minimum wage, so it doesn’t affect them.
It doesn’t affect them.
It doesn’t affect the employers that futures are bleak, employees of the middle can no longer afford housing, and there is not a decent income anymore, because the employer needs to afford their lifestyle. (Think about a particular $19.9 million yacht up for sale recently.) It doesn’t affect employers because support staff is replaceable, trainable, and shapeable.
And for those like me, who have an opinion, well, we are not desirable. We are replaceable. We affect the bottom line.
Let’s affect it together Talk about this problem. Let’s find a solution together.