This is a debatable goalpost. It seems more reasonable to me to assume that meeting basic shelter needs includes having a private room to oneself. The only reason to argue otherwise is to try to drive down the wage further, and is that at all necessary? Renting a private room was possible on nearly any wage 50 years ago, and the only reason it seems out of reach for many now is because purchasing power has been slowly stagnating for decades, while housing costs have soared in recent times. Yet this whole time, GDP continues to rise. It seems that our society can easily support much higher minimum wages (and this would likely have only a positive effect of stimulating the economy), but simply chooses not to.
I think it's reasonable for young people to have flatmates and share an apartment, for example.
If it is reasonable for a young person to have flatmates, then that should be because they are a student or an artist and are working only part-time while devoting the rest of their time to their studies or their art.
But a person working full-time? Who may be a single mother or father with a child to support? They should be able to afford a place to live, without roommates.
A living wage is for living indefinitely, not just surviving. That should afford more comforts like a reasonable amount of space, a car if needed, and saving for retirement or emergencies.
These are all real situations that make me think that pinning "living wage" to a level where you have to have roommates is not a good goal. You're basically asking people to survive by accepting unstable living conditions and potentially taking strangers into their homes, which isn't exactly "having your needs met."
Theres also lots more people, and as more people consume more resources it does not follow that better technology in some field will translate to increased every aspect of life.
It's not "student wage". It's not "struggling young person" wage. It's "living" wage. It's for living - at any age.
Eg does that quants internship get a lower pay because they are expected to graduate beyond it? If so, how do we define what jobs are stepping stones and which are long-term careers?
There are many ways to accomplish this beyond simply raising wages. Better government programs, lower the cost of housing/medical/transportation/food/etc. (these are surprisingly simple but many vested interests don't want this to happen), better retirement programs, etc. etc. etc. You see more of this in more socially democratic countries.
With a lot of these discussions, we need to be careful about the seductively simple solutions.
(Lowering the cost of essential goods and services is also something that can be done by leveraging the open market. It doesn't take yet another wasteful government program, which is the typical approach in socialist and social-democrat countries.)
Pick IL for example. Min wage $15, so $30k a year income fulltime. Most every adult that’s worked even a little should be able to earn decently more than min, which is for completely unskilled, new workers. Median il wage is 66k.
Even at $30k, the rough 30% rule on housing is $750/mo. At 66k it’s over $1500/mo.
Dig through smaller cities, and you’ll find apartments to rent in either end of this range. This works in any state.
(Which in turn opens up opportunities for others to move in to the higher-cost places and boost their own productivity.)
Historically housing was much smaller. And people lived with their families for a lot longer commonly. A lot less was also spent on domestic appliances (not just washer & dryers) and at-home entertainment (a lot less was spent on entertainment in general).
50 years ago, in high cost of living areas, you could rent an SRO, but now they're either banned or practically banned because they're strongly disincentivized against. Combine this with not building enough new housing and you get a recipe for rent increases. Even if a minimum wage works as intended, it can only subsidize demand, which would do nothing when the bottleneck is the supply.
I think others pointed this out but I don't think you can find any data to prove this because its not true.
I'm not a historian but I have seen a number of old movies and in those movies it was very common for the characters to be some poor schlub with a full time job at the factory living in some sort of group home/flophouse situation. Movies tend to reflect stories that resonate with the public at the time so I suspect that is because this was a common situation. I'd much prefer a single roommate in an apartment to a flophouse.
Why would that be reasonable? College students and young adults usually have roommates. I don't feel it's inhumane.
> The only reason to argue otherwise is to try to drive down the wage further
Another reason to argue otherwise is because you care about the truth. Even if you and I agree on the ends, if you use the means of exaggerating or stretching the truth to get there, you are never on my side. Saying that you need to not have roommates to live is an exaggeration.
> Renting a private room was possible on nearly any wage 50 years ago
You will never find any data to support that because it isn't true. 50 years ago, flophouses were common. You would share a bedroom room with others, with shared kitchen and bathroom between multiple bedrooms. In college, I lived in a housing-coop network where we slept two to a room. 50 years ago, they slept 4 or 6 to a room in my exact house.
> and the only reason it seems out of reach for many now is because purchasing power has been slowly stagnating for decades, while housing costs have soared in recent times
This is true. But there is a very natural reason why. Look at nearly any US city, and see how many more jobs there are in that city than there were 50 years ago. Then look at how many more homes there are in that city than there were 50 years ago. You will see that the number of new jobs far exceeds the number of new homes. The result is that wealthier people bid up the housing, while poor people are forced to live outside the city and commute. So why have no new houses been built? It can't be helped by the fact that building new homes is illegal. (e.g. buildings with 3 or more apartments are illegal in 70% of san francisco.)
Please direct your anger in the right direction! It's not generally the case that billionaires own thousands of homes, hoarding them while the poor live on the street. It's more often the case that the population has increased while the number of homes in places people want to live has stayed the same. The *only* solution is to increase the number of homes in places people want to live. Raising the minimum wage, taxing the rich, fighting corporations, adding rent control laws, none of that will help solve the root of the problem, the growth rate of homes in cities is far slower than the rate of people wanting to live there!
Not to mention you need to be able to save money for unemployment and rainy days..
$9000/year is a ton more than just having a car.
9000/yr for a car alone isn't crazy at all, just look at average car prices. I just had to do my vehicle renewal today and it was $500 for a 5 year old car that's not particularly expensive! If I look at insurance and car payments, I easily spend over 700 a month. This is on a 30k car, so it's not like I went and bought the biggest luxury vehicle possible.
You don't actually need a car unless you have a child or a tradesmen with tools or something like that, a small displacement motorcycle will still take you to 99.9% of the jobs in the lower 48.
(don't worry about how to pay the ambulance bill when you hit some black ice..)
The calculator suggests $5,021 for food, but for me I’d only shop at high-end grocery like Whole Foods and buy organics whenever possible. That’s clearly not enough. On the other hand it suggests $1,792 for internet and mobile which is about double what I actually pay and I have both unlimited mobile data and unlimited home data. Then it claims medical costs of $2,890. For a fit individual with good employer-provided health insurance, that figure should be almost zero.
Ultimately the amount one spends for living depends very much on one’s preferences and these calculators are approximates. I believe you when you say many young people can live for much less, but that doesn’t invalidate the calculator.
No, it won't be almost zero because they're including health insurance premiums in that figure. Few jobs in the US cover 100% of the premiums for their employees.
>> The cost of health care is composed of two subcategories: (1) premiums associated with employer-sponsored health insurance plans and (2) out-of-pocket expenses for medical services, drugs, and medical supplies.
Because preferences for food, housing, and healthcare are essentially unbounded, I think you will always have unmet preferences.
It must be more nuanced than you say, as millions of people reach old age without sharing your concern.
Even on the smaller things. "Internet & Mobile" for where I am jumped out to me. Based on the difference between 1 adult and 2 adults, it's $582 per person-year for mobile (which I guess isn't far off if you get a good new phone every 2 years, it's reasonable enough) and with that subtracted, internet is $100 per month. The methodology page says "County-level data on the cost of internet comes from research on lowest-cost monthly plans from BroadbandNow", but even that page shows much cheaper options available (including the $70 per month Google Fiber I have).
I was surprised (at least for Birmingham/AL/Jefferson County) how accurately it pegged _most_ of the costs -- childcare here is closer to $12k/annum/child so that one was the only one I pegged as 'off' - they show 2 children as $16k and that's a ~$8k underestimate
I spend $20/month for mobile and buy a new $500 phone every 3 years.
I make way more than a livable wage, but spend much less than their projected costs.
The minimum wage is far below what it takes to actually 'live', like have a place to live and a car.
If you need roommates because you can't afford an apartment on your own, you are poor by definition. That's probably the most universal definition of poverty that has ever existed. As long as there have been houses, the baseline household has had a housing unit of their own. Households that have to share housing with others have always been characterized as unusually poor, no matter the continent and the millennium.
Historically speaking this is incredibly wrong.
Nearly every culture evolved from some sort of shared communal longhouse to individual clan homes, to extended family homes. The idea of individual private rooms actually comes about explicitly from Manors in the late medieval ages. We really didn't see widespread individual homes until the industrial revolution. In places like the East, individual rooms were an import from the West.
Even in rare places where there were individual family homes (Ancient Egypt, for one). Privacy and individuality were just not concepts. Through the 1800s, you might have literally been sharing a bed with a stranger in a hotel.
There has also never, ever been a point in human history where living without some sort of roommate was common. Even in situations where you had lots of single workers, they almost always lived in bunkhouses or SROs.
This was about households rather than individuals and housing units instead of homes, and privacy is unrelated to the discussion. For example, longhouses typically had internal subdivisions that functioned as housing units. A household that cannot afford a baseline housing unit is unusually poor, regardless of its size.
In a developed country, the baseline housing unit most households can afford is typically an apartment or a house. Households that cannot afford one are unusually poor.
Someone who forms a single-person household and doesn't earn enough to rent an apartment is poor.
Single-person households are often poor, especially when the person is young. Living wage estimates for such households tend to be higher relative to typical wages than for larger households, as the idea of a living wage is largely about rising above poverty.
Thus my point. I don’t know what “livable wage” means with these numbers so it’s not very useful for discussion or planning or measurement.
The average person is not-quite healthy, at best.
An appartment and a car aren't exactly luxury goods. Cars are often needed to work, and well, having a roof over your head is usually required for a decent living.
Sure, if you fancy living in a cardboard box located next to your work, your living standards are going to be much easier to attain.
Their cost estimates are much higher than what’s required to live comfortably and save for a rainy day.
Needless to say; only old people have homes and only those who have sufficient help get a nice appt.
I've always taken "living wage" to be the wage required to live in reasonable comfort. You won't be owning any yachts or eating caviar, but you should also not be living paycheck to paycheck unless you're acting irresponsibly with your money.
If you're sharing a house or apartment with one or more roommates for reasons other than romance or saving up for a place of your own, to my mind, that's not a "living wage" - it's mere survival. Whether we believe minimum wage should barely let you scrape by or live more comfortably shouldn't confuse the fact that in many places, it doesn't even meet what's considered "poverty wage" (e.g., it doesn't in my local area).
What math are you doing to get $130k with those numbers? That wage works out to around $60k/year.
130k/yr is more like 65/hr.
I don’t make a living wage for my region and while I can afford food and a room to rent, I can’t really live a decent life, save for the future or invest in myself, I just barely get by every paycheque to paycheque. Thanks
More the former. A lot of the commenters here are missing that detail. A living wage doesn't mean you can afford all the nice things, it means you aren't starving and can cover the needs for you and your family, but maybe some, but not many, wants.
If you can't live alone with a car? Then what do you think you are doing?
After looking at the method, I think the calculator probably has some bias towards “what society has convinced us we need”. To a certain extent that is a relative and subjective perception problem, and one exacerbated when you live in a society with a lot of consumer debt.
A 10 oz ham sandwich will probably cost you more than 2 dollars even if you buy everything at the supermarket. I don't know why people are so reluctant to admit that 12 dollars a day is not much for groceries.
There is no getting around the fact that $12/day buys a lot of good groceries even in expensive cities. Cooking is trivially learned, especially these days with the Internet. The people claiming that eating on $12/day is challenging are really saying that they can't support their affluent lifestyle on $12/day. Which is true! But it reeks of learned helplessness.
As someone who lived decades of their life in real poverty, I find most of the discourse around a "living wage" to be deeply unserious. Things that are completely normal and healthy in low-income communities across the US are presented as unachievable despite millions of examples to the contrary. Living well as a low-income person is a skill. It is obvious that many people with strong opinions on the matter don't have any expertise at it.
The only reason I still regularly eat the same kind of food as when I was poor is that it is objectively delicious and healthy, cost doesn't factor into it. I can afford to eat whatever I desire.
>The people claiming that eating on $12/day is challenging are really saying that they can't support their affluent lifestyle on $12/day. Which is true! But it reeks of learned helplessness.
I guess I was affluent and didn't know it.
I don’t consider daily or even weekly restaurants part of a necessity for life.
Not everybody is like you.
Restaurants have never been a necessity for life, but I guess that for a lot of people you should be upper class to eat out once a week.
6-8 servings of fruits and vegetables a day, fairly liberal amounts of dairy and lean protein, lesser amounts of red meat. Grains like breads/rice for additional carbohydrates.
Admittedly, avoiding eating out regularly is the #1 way I keep food costs down, though.
Behold, "averages" are not perfect.
But we stick to the essentials, utilize different stores for the lowest prices we can get, and don't purchase nonsense.
Ie “averages” with large variances are not often very informative
The average wealth between me and Elon is several hundred billion dollars. That gives you very little information about me. Which is why people can hang too much inference on a simple average. Like Nate Silver said in The Signal and The Noise, the real discussion for the data literate is about uncertainty in models, not just drawing conclusions from “averages”
I would expect living wage to mean the amount one needs to be able to live out your life fairly decently and with dignity. I think many do so without having pay this high.
They do not actually live on less, they sacrifice their health or well-being in order to meet the constraint.
I would argue the calculator grossly underestimates necessities because most of these jobs are not doable in old age, so you need to account for saving $1 for each $1 you make, to support yourself while old. You also need an emergency fund, because in the US you get billed $1000 for the most random shit at the most random time.
I got billed $5000 randomly for an echodardiogram because insurance didn't pay for it despite them saying they would. At least I have $5K to spare, but considering that can happen, that needs to be considered a basic necessity.
Edit: also the housing cost is probably factoring in a studio or maybe a 1bd for a single person. That may seem luxurious to you, but for many that is the only real option they have (roommates are hard to come by and can hurt you physically and fiscally).
In my 20s everyone I knew had roommates. And it was a good life.
Saying a studio or 1 bedroom is required makes this metric pretty ambiguous.
Thus my point, that this isn’t what’s required to just live. But to live comfortably.