What is the New Minimum Wage - Living Wage Vs Minimum Wage

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Being written in October of 2006, this report focuses on a minimum wage of $5.15 per hour. This reader believes, however, that even with the recent minimum wage increase the article remains valid as the current gross boost for a 40 hour work week amounts to less than $100 monthly. The 2008 increase will up the average minimum wage workers income a little more than $200.00 monthly, and 2009 will raise their monthly income just over $300. When the increases are totally effective, the minimum wage worker will earn about $3300 more per year, for a consistent 40 hour work week, than they do now.

Although many see raising the minimum wage as a first step to instituting living wage laws, this report shows the country to be divided on the best ways to tackle poverty. The Los Angeles area has benefited greatly from instituting a living wage ordinance. Job loss was minimal, benefits were solid for workers covered, there was no decline in the number of firms bidding for governmental contract and the city was not impacted in its ability to retain or attract employers willing to pay decent wages.

On the other hand, Santa Fe, NM found that due to its living wage ordinance, the city has experienced a 16% increase in the unemployment rate and a loss of 540 jobs, affecting the retail and hospitality-leisure sectors of the work force the most severely.

According to Dr. David McPherson, Florida State University economist, when Arizona increased its minimum wage , a correlation became evident between job loss among the most vulnerable employees, and wealthy teens displacing unskilled employees.

As movements are appearing all over the country at city halls and on college campuses in favor of wage increases, critics are making a strong argument for keeping the status quo raising concerns about increased labor costs negatively impacting the economy, (more…)

Post Olympic Economic Stress

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Post Olympic Stress shows up in a lot of different ways and a lot of different places.

Look around and you’ll see it: the blank stares that won’t be satisfied with anything BUT live Olympic action.

People are on a quest - a quest to find something to fill that Post Olympic void.

But what’s harder to see is the ECONOMIC void left behind by the Olympic Games…

The Olympic athletes are often the first to feel the crunch. Even with sponsorships, the cost of competing in the Olympics can be ENORMOUS! There’s gear to buy, coaches to hire, specialists to see, and the travel costs can be astronomical.

“Real jobs” get put on hold, savings accounts bleed money and (especially if you come home without a medal), people aren’t just lining up to give you money or help pay off the mountain of debts you’ve accumulated.

After speaking with one Olympian they were quoted as saying, “I’m a living witness. I’m here to tell you right now that I racked up a HEAP of debt while training for the Olympics. And the running joke, “If you’re not willing to go into debt then you’re not willing to go [to the Olympics].” Unfortunately, going into debt is “par for the course” for the smaller sports out there. I’d had to think about how much is costs to do Equestrian. Because I know that horses are expensive.”

A conversation with another Olympian yielded this response when talking about his post-Olympic financial woes, “Debt? Ha!! I stopped talking about debt a long time ago. I don’t think about the money, I just think about winning. There will be enough time to get depressed thinking about the money I spent later. I have to focus on the training so at least I can get some joy and satisfaction from being at the top of the medal stand. But, oh boy, when you come back home to a mountain of debt after the Olympic Games, that is a super sobering (more…)

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