Alabama Politics in
Doc’s Political Parlor
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August 2, 2006

Minimum Wages & Cost of Self-Sufficiency

Filed under: AL Issues, National Issues — Danny @ 12:28 pm

Last week, the U.S. House passed a bill that would raise the minimum wage over three years from $5.15 to $7.25 per hour. That is coupled with an estate tax repeal for the benefit of the top 1% wealthiest Americans that would cost the U.S. $268 billion over the next 10 years, and it would cost at least $599 billion in the 10 years after that. For this reason, I expect the bill to be D.O.A. in the Senate.

The minimum wage has been $5.15/hr. since 1997. Its purchasing power is the lowest it has been in 51 years.

How much do you have to make to be self-sufficient in Alabama? According to a 2003 study (pdf file) that looks at self-sufficiency on a county-by-county basis broken down by family type, a single Birmingham resident would have to make $8.09/hr. to be self-sufficient. In Mobile, for example, a couple with an infant and a pre-schooler would have to make $9.76/hr. each for self-sufficiency.

2 Comments »

  1. I can get on board with those members who say there shouldn’t be a minimum wage. I can really understand that. However, there is one. So if we’re going to have a standard (that everyone follows), it should be a living wage, not a number that’ll ensure businesses can pay whatever they want.

    Thanks for the links and information about wage needs in Alabama.

    Comment by Dan — August 2, 2006 @ 11:28 pm

  2. You are most welcome!

    Comment by Danny — August 3, 2006 @ 10:12 am

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