Is $15 an Hour a Good Wage in America?

The minimum wage in America has been a controversial topic, especially when it comes to whether $15 an hour is an adequate wage. This wage applies in states such as mine, where it is considered a training wage, not a living wage. For the unskilled or new workers, earning $15 an hour and being responsible can provide the necessary skills needed to qualify for a decent wage.

The Reality Check

In my city, a single person earning $15 an hour would still struggle to earn a living wage. The cost of living, as well as the number of people who earn less than $30,000 a year, indicates the challenges faced by many. A household earning $15 an hour and in a city with a 20% poverty rate highlights the need for a higher wage in such circumstances.

The Fight for $15

The Fight for $15 movement has garnered significant traction, particularly in urban cities. However, the implementation of a universal $15 wage is not a one-size-fits-all solution. For instance, in Seattle, a few workers have successfully negotiated for this wage, but the industry is moving towards automation, reducing the need for such manual labor. Additionally, an influx of new residents exacerbates the issue.

State by State Implications

The viability of a $15 an hour wage depends significantly on the location in America. In rural towns where small businesses are the backbone of the local economy, a minimum wage of $15 an hour may cause significant disruptions. However, in urban areas, this wage may appear more reasonable. Let's consider a personal comparison to illustrate this point.

A Personal Comparison

I have lived in a small town in Kansas with a population of 900 and currently reside in a neighborhood in California with a population of a million. Here is a detailed comparison based on housing and cost of living:

Living in a Small Town in Kansas

In Lawrence, Kansas, my brother managed to rent a 3-bedroom, 2-bathroom duplex with utilities running him about $950 a month. Earning $11 an hour as a cook, he could afford the place and save money each month. Here, a $15 an hour wage would not differentiate much in terms of lifestyle.

Living in a Big City in California

Currently, I live in a one-bedroom apartment in a crowded neighborhood in California, which costs about $2,500 a month. With a $20 an hour wage, I would need to work 125 hours a month just to cover rent. This unparalleled weekly work schedule is unsustainable and unrealistic without assistance or cohabitation.

How Much Time Does It Really Take?

Here's the raw data for monthly rent cost and hourly wage:

Kansas: To cover $950 rent at $11 an hour, you need 86.3 hours a month. California: To cover $2,500 rent at $20 an hour, you need 125 hours a month.

The difference is striking, highlighting the stark contrast in cost of living between states.

Other Expenses

Even beyond housing, the disparity extends to other necessities such as gas and groceries. The average price of gas in Kansas is $3.90 per gallon, while in California, it reaches $5.73. In a big city, the potential for driving and sitting in traffic increases, further driving up these costs.

Moreover, the cost of food and leisure activities in urban areas makes the $15 an hour wage significantly less sustainable. A minimum wage of $15 an hour in a city like San Francisco or Los Angeles is not just problematic but almost laughable.

Conclusion

It is crucial to address the issue of minimum wage on a state-by-state basis. In states like Kansas, $15 an hour can support a modest lifestyle. However, in urban centers, this wage is a significant inadequate. Therefore, local and state governments need to consider the specific economic context and local realities when setting and adjusting minimum wage standards.