Significant gap between the minimum wage and the cost of living in the US, with workers in all states falling short of covering basic living expenses.
Minimum Wage Gap in the US: A Growing Concern Amidst Increasing Cost of Living
The gap between the minimum wage and the cost of living in the United States is very large. A study by GOBankingRates shows that even in the best states and minimum wage workers are still about $14,000 short each year. The federal minimum wage has been $7.25 an hour since 2009 and efforts to raise it have not worked.
State minimum wages vary a lot, and some cities have higher rates to help workers. Tukwila, Washington, has the highest minimum wage at $20.29 an hour. In contrast, states like Alabama and Idaho follow the federal minimum wage, leading to big income gaps. In Alabama, a minimum wage worker makes $15,080 a year, which is $23,719 less than the average annual cost of living. In California, with a $16.00 minimum wage, workers earn $33,280 a year while the living cost is $86,017.
(photo: google)
Widespread Inadequacy of Minimum Wages Across the US, Calling for a Federal Solution
These numbers show that we need changes to close the gap between wages and living costs. Some states, like Minnesota and New York, have adjusted their minimum wages based on employer size and location, but the problem is widespread. The study shows that even in states with higher minimum wages, workers still can’t cover basic living costs, highlighting the need for a federal solution.
