August, 2008

>Surviving (or not) on Minimum Wage

>The increase of the minimum wage is greatly appreciated but, it’s still not enough. This is what many of our round-the-clock, hard-working minimum wage earners are saying. Even those that make a little over the minimum wage are agreeing as well.

Last month, the Federal minimum wage increased 70 cents, from $5.85 to $6.55 an hour. This is one part of a 3 phase series of increases for the minimum wage passed by Congress in 2007, which will eventually reach $7.25 effective July 24, 2009. Nonetheless, almost half the country, 24 states, already has higher minimum wages, ranging from $6.79 in Florida to $8.07 in Washington State, according to the federal Bureau of Labor Statistics (BLS). However, this increase does not help even those that are making a little over the minimum wage, whom are also struggling to get a handle on their financial troubles.
Barbara Stepney, a 57-year-old grandmother in Baltimore, makes $7.15 an hour and cannot afford health insurance, her own car, or her own apartment. She barely has enough to buy groceries. Even though, she is close to retiring, she won’t be able to. She is considering a second job so that she can afford clothes and health insurance.
“You can’t live anywhere in this country on $13,624 dollars a year,” says Jason Perkins-Cohen, executive director of the Job Opportunities Task Force in Baltimore, crunching the numbers on what the new minimum wage translates into as an annual salary. “It’s not enough to pay for housing, to put food on the table, to keep your house lit and warm.
About 60 percent of minimum-wage workers labor in leisure and hospitality jobs, such as food preparation, and tend to be younger and unmarried, according to the BLS. The numbers just don’t add up for millions of Americans making close to minimum wage, say fair-wage advocates, especially in light of increases in gas and food prices.
Perkins-Cohen welcomes the wage increase, saying that every little bit helps low-income workers afford a few more groceries or higher electricity bills, but he stresses that it’s just not enough.
The reality is the minimum wage is not keeping up with this economy and inflation. The increase is well received but, in order to live considerably comfortable, the minimum wage needs to be over $9.00 an hour.
To read the entire article, click here <<<

>A Makeover for Michigan

>Where have all the young and educated gone? Research has shown that some cities are having problems retaining their young and educated workers, like Michigan. Their children are graduating from Michigan’s colleges and universities but, are packing up and leaving to go to other thriving and more attractive cities such as Chicago, Denver, and Minneapolis; taking with them their commoditized skilled talents.

Research published in February by Michigan Future, Inc., an Ann Arbor public policy think tank, shows that the states with the lowest unemployment rates and highest personal income levels have at least one large metropolitan area with a high concentration of college-educated young people. The research found none of the cities is in Michigan. Not one.

So, what is the young and educated looking for?
Young adults are looking for cities that will harbor many of the night-life, socializing activities and they also inhabits many of the high-paying jobs as well. They want the coffee shops, “walkable” neighborhoods, affordable rental housing and public transportation and the good paying job is a big bonus.
Massachusetts is suffering from the same problem. One in five young adults expects to leave Massachusetts during the next five years due to amid frustrations with the high cost of living and the state government’s response to their concerns, according to a new survey. High taxes, housing and health care cost are a big turnoff for young adults. Twenty-two percent do not expect to be in the bay area in the next 5 years, according to the survey. These are critical economic issues that matter to young adults.
So, what will keep you in the city?

>Filling his Pockets, Depleting Yours

>The economy is the number 1 concern in this election. Prices are rising for everything; food, housing, insurance and gas. And McCain, apparently hasn’t taken us, hard working people into consideration when it comes to energy. The Obama camp aired an ad that explains McCain’s strategies for energy. McCain has accepted about $2 million in contributions from oil companies and wants to give them $4 billion in tax breaks instead of taxing their profits to help drivers. How will that help those of us who actually have to fill up our own tanks and drive to our destinations?