“You are not poor! You just can’t afford housing, childcare, transportation, healthcare, etc”

Session 7: Poverty & Wages

The federal government dictates the minimum hourly amount an employee’s wage should be. This amount is known as minimum wage which is currently $7.25 an hour. At a first glance, a wage of $7.25 an hour may appear to be a respectable salary, however, any further examination regarding the cost of living might lead you to the realization that minimum wage is not enough. In order to fight poverty it is imperative to have a minimum wage that takes into account the cost of living. Raising the minimum wage to meet the costs of living would allow families to cover their expenses without relying on governmental aid. In addition, putting money in the hands of low income individuals is a great economic stimulator because they are more likely to spend money on necessities rather than saving it. Even the minimum wage of $7.25 an hour fails to acknowledge tipped workers. Young mothers who do not have a college degree often find employment in restaurants because the qualifications are not extensive. However, the minimum wage of tipped workers in Georgia is $2.13 an hour. These are the workers who suffer the most during economic recessions because people abstain from eating out and if they do they are very likely to tip less. When the economy slows down restaurants start promoting meal deals that can range from $3.99-$6.99, which is good for the consumer but terrible for the waitress/waiter because that means their tip will suffer. I am currently a tipped worker, I work at a restaurant near my house, personally I have no bills to pay because my parents cover all of my expenses, and therefore, most of the money I make is to cover the expenses of commuting to Georgia State University and other small expenses. However, if I had to sustain a household I would soon become a poor individual because my salary is not even enough to cover the rent of a one bedroom apartment. A tipped job is not only underpaid, it can also be emotionally distressing because some individuals treat you as if you were less than them. In conclusion, fair wages encourage fair working ethics which is likely to result in business productivity which in terms benefits businesses.

·         How well you think poverty is being addressed currently in the United States? Poverty  is not being addressed correctly in the United States, I feel as if we are not putting enough effort to alleviate the needs of those who are already living in poverty and we are not doing anything to help those who are fighting the poverty threshold.

·         What you personally think should be done about poverty in United States? We can’t just increase the minimum wage because the reality is that most companies will not sacrifice their precious profits in order to pay fair wages, therefore, they will most likely pass on the cost to the customers, which raises the price of things and we will again be at square one. Therefore, in order to have a real change we must have a wage that reflects inflation without causing further inflation.