So in an effort to continuously educate myself, I looked up the "Fair Labor Standards Act of 1938" which is Act that first establishes Federal Minimum wage. I thought this paragraph for why Congress decided to pass such an Act was interesting...
The Congress finds that the existence, in industries engaged in commerce or in the production of goods for commerce, of labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers
From Investopedia:
What Does Standard Of Living Mean?
The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate and safety. The standard of living is closely related to quality of life.
From Investopedia again:
What Does Living Wage Mean?
A theoretical wage level that allows the earner to afford adequate shelter, food and the other necessities of life. The living wage should be substantial enough to ensure that no more than 30% of it needs to be spent on housing. The goal of the living wage is to allow employees to earn enough income for a satisfactory standard of living.
So back to the Department of Labor's website about Minimum Wage:
The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws.
So simple math here: $7.25/hr x 40hr/week x 52 weeks/year = $15,080 per year before taxes
So using the Living Wage Calculator provided by Pennsylvania State University, I plugged in a couple of locations to see what it costs to actually LIVE in these places and you can go to their website to see where they got their numbers. (Note: Based on minimum estimates for a low wage family, not to maintain a middle class family):
Bristol, TN: One Adult = $7.12, One Adult & One Child = $14.69
Virginia Beach, VA: One Adult = $9.30, One Adult & One Child = $16.93
Atlanta, GA: One Adult = $9.04, One Adult & One Child = $16.48
Boston, MA: One Adult = $12.17, One Adult & One Child = $20.75, Minimum Wage in Boston is $8/hr
Leavenworth, KS: One Adult=$8.56, One Adult & One Child = $16.12
Pine Ridge Reservation, SD: One Adult=$6.28, One Adult & One Child = $12.80
Los Angeles, CA: One Adult =$11.20, One Adult & One Child - $19.96, Minimum Wage in CA is $8/hr
San Francisco, CA: One Adult=$12.65, One Adult & One Child - $21.82, Minimum Wage in SF is $9.79
Now, I just picked a couple of places to get an idea for the feel for the US overall, and basically, in most places if you are making minimum wage, you better be able to live with someone else who can share the expenses of living. If you're a single parent earning minimum wage, forget it, you're just screwed in ALL scenarios, but you MIGHT be able to get by with working 2 to 3 minimum wage jobs. But the fact that you ARE working, well, you don't qualify for any help. You better get crackin'!
Now my father said to me that Minimum wage is pretty much only for people starting out and teenagers and that through time and skills that they would get salary increases.
I think that's a bunch of crap, as I personally know many people who have been loyal workers who are still making minimum wage. In fact, my closest friend has been working for the same employer for over 3 years and makes minimum wage even though he depends totally on her to run his business. But, ok, let's say well it's due to working for a small business to be reasonable, but I'm going to double check with some of the folks that I know who work for a fast food chain to see what they're making.
So some questions that I like to ask people...
-If a company makes MILLIONS of dollars in Profit, and their lowest "unskilled" worker makes less than a living wage, do you find that morally acceptable?
-What about million dollar bonuses for Upper Management, instead?
Now the typical answer I get from people are that CEO's "DESERVE" their million dollar bonuses. And when I ask them a follow up questions, "So you're saying that the people who work for them DON'T DESERVE to make a living wage?" they usually change the subject or walk away or say "You just don't understand."
As an engineer, I like things SIMPLE, cut away all the fat and give me the essential information. So this is what I see:
Minimum Wage of $7.25/hr
Average Living Wage based on the 5 cities above that were using $7.25/hr as their minimum wage standard: $8.06/hr
Person considered "wealthy" in the US (Annual income $250,000+)=$120.19+/hr
Hmm...what would a morally responsible company do?
Well, let us get a quote straight from one CEO's mouth...
"My moral responsibility is to protect and grow the investment of shareholders." - T.J. Rogers, CEO of Cypress Semiconductor in the article "Why CEOs Can't Stand Obama."
Apparently, it's true, I really don't understand.


Saturday arrive in Geneva, Switzerland. Explore the city and try really, really hard not to go to sleep until 10 pm to help with the Jet Lag.
