In this post, I want to talk about the Minimum Wage and the actual cost of living. Minimum Wage does not cover the actual cost of living. This wasn’t always the case.
My parents have told me that the Minimum Wage actually covered the actual cost of living in the 1940s-1980s. Starting in the 1980s, the Minimum Wage has not been increased regularly to cover the actual cost of living. Now, a person cannot support themselves with a Minimum Wage job.
I believe that this is a very real example of collapse occurring right now. Our Economy is in the process of collapsing right now.
Now, people may try to mitigate the Economy’s collapse by having a roommate or reducing their expenses, but this is not growing the Economy. It is actually shrinking the Economy.
For example, I have calculated the actual cost of living here for someone who lives in my home town (Oklahoma City) and works 40 hours per week at a Minimum Wage job:
Cell phone: $40
Car insurance: $25
Total Expenses: $1,130
Total Income: $986