Thursday, October 7, 2010

Session 7: Poverty And Wages

In this weeks session I learned about average wage vs the cost to live without government support in Atlanta. I also learned about the minimum wage and the living wage laws.


Wages in Atlanta

The fastest growing jobs in Atlanta such as cashier, retail, food, janitor, etc. pay less than $10.00 a hr.
Those working in retail make a average of $570 a week/ $29,640 a year.While those who work in food service make an average of $444 a week/ $23.088 a year.
63% of all hourly wage jobs pay less than 10.50 a hour.

The minimum cost of living for an adult in Atlanta is about $1,449 a month, that is without any government assistance. The minimum cost for an adult with 2 children is $3.601. Therefore those making the minumum wage are trying to make ends meet on this salary but their salary dont add up to the minimum needs budget therefore causing them to live in poverty.
Federal And Georgia Minimum Wage

* Federal minmum wage for nonexempt employees = $7.25. (eff. July 24,2009)
*Georgia's current minimum wage = $5.15
In states that has state and federal minimum wage laws the employee is entitles to the higher of the two wages.

Workers still making $5.15 a hour in GA:
85% are 20yrs old or older
51% are full time employees
29% are married
25% are parents

Many people believe that raising the minimum wage will causes businesses to leave the state and hire less people. This statement is false, when the federal minimum wage was raised in 1997 the increase did not result in job less nor was there any increase in unemployement.  I believe that raising the minimum wage is a step to helping the poor. Families will be able to provide for their families more and try to pry themselves out of poverty. I also believe that raising the minimum wage will motivate those who are poor to actually work.

Living Wage

Living wage is the minimum hourly wage sufficient enough for someone to provide basic needs for their self such as shelter, food, clothing ,etc.The minimum needs budget for someone in Atlanta is $12.68/hr.
The living wage law is not a local minimum wage and currently only applies to  city employers, major service contractors and companies receiving financial aid.

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