Tuesday, May 20, 2014

Life Changing

Over the past few months I have gone back and forth about how I feel about a fifteen dollar minimum wage for Seattle employees.

On one end I ask why those of us that do not make fifteen dollars an hour chose to work for businesses that pay less than that?  I have come to the conclusion that the majority of people that have jobs that pay less than fifteen dollars an hour would jump at the chance to apply for a job that paid more.  In the food industry its very hard to find an entry level job that pays fifteen dollars.  Most individuals in jobs that pay less than fifteen dollars, do so out of necessity.

 If I had my choice I would not work for less than twenty dollars an hour.  That wage expectation would leave me unemployed, as I have not seen one food industry job that I am qualified for that pays any where near that.  Which means that I would not be able to provide anything for my family.  Some employment is better than no employment.  At the end of the day, there is a large portion of Seattle that lives day to day.  One mistake, one sick day can have a family at risk of being evicted.

 Some say go to culinary school, get certified, and put yourself in a position to demand more money.  That sounds great, but when one is not generating enough money for necessity it is extremely hard, nearly impossible to think or initiate an action toward upward mobility.  Lack of time for school, or entrepreneurship is also an issue that is usually neglected by critics of the fifteen dollar an hour wage increase.

The twenty two dollars that I used to attain a business license, took two meals off my families table.  The decisions one has to make in order to move up with no guarantee of success puts poor people in a very tough position.  Even those that have been taught and exposed to avenues that will allow them to have a comfortable life face difficult decisions.      

I look at the importance of education and ask, am I not earning more money due to my lack of a degree?
This thought process has led to many sleepless nights, as I was having trouble with the thought of knowing exactly how to get out of poverty, but not being able to afford it.

According to Experian, Seattle leads the nation with an average household debt of around $26,000.  Im right around average.  My thoughts go out to those Seattleites who are below average, and do not have the means to actually get themselves out of debt.  I myself at my current wage can not get out of debt.

In fact based on how much I make I go further in debt every month.  I make $12.80 at my current job at the University of Washington.  I actually took a pay cut in order to take advantage of the benefits.  I learned very quickly that if you do not make a certain amount of money, you can not take advantage of the benefits that are offered.  I cant put my kids on my insurance at my current wage.  Excuse me I can, but that would leave me with even less money for everyday issues like bills and food.  Lets look at the numbers.  

As I said before I make $12.80 hourly, which is around $2048 monthly before taxes.  After my monthly expenses of $2200, I am negative -$152 every month.  Which adds up to around -$1824 in debt every year.  If I made $15 an hour, I would make around $2400 a month.  After my expenses of $2200, I would be left with $200 a month!  That would be life changing.  It would allow me to build my business buying a new piece of equipment ever month.  It would allow me to start paying off my debt.  It would allow me to sign my kids up for programs that are vital to their success both academically, and socially speaking.

Although $200 dollars to some is nothing.  To people like me it would truly be life changing.  That's potentially $2400 a year.  At that point, I could save up, and take my family camping.  The thought of moving up, and actually having the money to do so is a dream for all Americans.  The problem is that there is only a small population in a position financially to live out that dream.

If a $15 an hour minimum wage was to be implemented for all workers in Seattle, the city would also have to implement money management workshops, in order to educate those who would benefit from the increase in wages.  Not enough to give people more money.  Have to educate them as well.

My only concern is the thought of people losing jobs as a result of a wage increase.  Will businesses let go of workers if they have to increase wages in order to keep their profit margin from declining?

I support a wage increase as long as it does not cause a significant decrease in employment.  

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