Friday, July 24, 2009

Perspective on Seventy Cents

Seventy Cents an hour, or about $1,400 a year for full-time workers is what today's minimum wage increase means. In Oregon, though, it will not mean any change because the state minimum wage is already $8.50 per hour, that is $1.25 more than the new national minimum wage of $7.25.

What does $7.25 per hour mean for the working poor? First it means that, in states where the federal minimum wage applies, a single parent of one who works a full-time minimum wage job will make just slightly more than the federal poverty guideline for a two person family. But beating the poverty level (just $14,570 annually for a family of 2 in 2009) is far from a comfortable or secure life.

The State of Oregon Housing and Community Services attempts to make a more realistic estimate of what constitutes poverty in each of Oregon's County and reports the results in an annual report. According to the most recent, January 2009, report that single parent with one child living in Multnomah County would require $35,556 per year to afford a basic family budget. In order to create that income, the single parent working full time would have to earn $17.09 per hour. More than twice Oregon's minimum wage, and nearly ten dollars an hour more than the new national minimum wage. It would take $41,316 for two parents with one child to afford a basic budget in Multnomah County, equivalent to $9.93 per hour with both parents working full-time jobs; still well in excess of Oregon's and the nation's minimum wages.

Surely the 24 hour news channels and the Sunday TV Politics and Press shows of the chattering class will be full of people alternately calling the minimum wage increase salvation for the poor and the death knell for our economy, but neither of those things loudly proclaimed straight from the gut of their speakers will prove to be true. When talking about those who live at the edges of poverty, it is easy to react from the gut, but a little perspective can provide more meaning.

Even with the 70 cent increase in the minimum wage, it is still possible to work hard, to work full-time in American and not make ends meet. It is possible for a woman to work full time and come home to wonder how she will find enough money to pay a lawyer to get a restraining order to help keep herself and her child safe from an abusive relationship she just escaped. It is possible for man to work full time and wonder where the money will come from to pay a lawyer to help get back what was lost when a shady mechanic took advantage of him. It is possible for a couple, both working full time to find themselves staring at a retaliatory eviction notice without money for a lawyer to fight and afraid that they and their kids will be kicked out into the street.

These are some of the people served by public interest attorneys. To leave you with a little more perspective: some of these public interest attorneys do not even make enough to afford the state of Oregon's budget for a single parent in Multnomah County. See the national distribution of attorney salaries for the class of 2008.