My name is John Frost and today we are talking about minimum wage in the US and how cant survive and how it is not enough for rent in the US.
My report illustrates stark realities facing some low-income workers in the U.S. For instance, someone working full time at $7.25 per hour, the federal minimum wage, would need to put in 122 hours a week to afford a modest two-bedroom rental home, priced at the national average fair market rent of $1,149, and still have money left for other necessities.
And this is very true because I live this life.
The costliest state is Hawaii, where the minimum wage recently raised to $10.10 but you’d need to earn about $75,000 a year to rent a modest two-bedroom home.
The cheapest housing is in Arkansas, a state with an $8.50 minimum wage, where you’d still need to make about $29,000 a year to afford a two-bedroom rental at fair market price.
One economic force driving low-income people out of housing is a process known as filtering, which happens when older properties become more affordable over time.
But filtering typically doesn’t produce enough housing for extremely low-income renters, and at a certain point it makes more sense for landlords to redevelop units so they can charge higher rents.
Fact to know
Absent public subsidy, the private market fails to provide sufficient housing affordable to the lowest income households. At the same time, three out of four low income households in need of housing assistance are denied federal help due to chronic underfunding. The net result is a national shortage of 7.2 million rental homes affordable and available to the lowest income renters. No state or major metropolitan area has an adequate supply.
Since the 1970s, wages have been mostly stagnant for Americans in the middle and lower classes even as productivity has risen.
Some key factors include: Workers receiving a diminishing proportion of income over recent decades, globalization and technological advancement pushing out low-wage workers, and firm collusion and domestic policies disadvantaging workers’ bargaining power. The data on wage stagnation and income disparities among U.S workers is clear, but how or whether to remedy the situation with policy remain open questions.
Here’s where the National Low Income Housing Coalition seems to stand on policy, as seen through part of the report’s foreword, which was authored by Senator Bernie Sanders:
"We must extend rental assistance and other housing benefits to the millions of low income families who need help to make ends meet, but who have been turned away because Congress refuses to fund these programs at the level needed. We must stem the rising tide of evictions and invest in innovative strategies aimed at eliminating homelessness. And we must start to close the housing wage gap by raising the minimum wage to at least $15 an hour so that no full-time worker lives in poverty.”
Which at this point, I dont see it getting better no time soon. Everybody I know is struggling someway, my life has never been a cake wake I watch my whole entire family struggle and make ends meet (barely). And I watch kids I know and grew up with dont realize how good they have it ,because their parents didnt have financial problems and they took serious advantages of it and put this image on like they actually lived in poverty and basically struggled and forced struggles on themselves when they didnt have too, Till this day I will never understand it.
I grew up in the hood worse part you can never imagine and I dont wish it on nobody, but I am so humble, Because I know life is a struggle it was just going to take some extra work. It's always a way out