Posted on 12/27/2019 8:20:56 PM PST by sushiman
A study conducted by the Brookings Institute found that 53 million Americans between the ages of 18 and 64 (or 44 percent of the workforce) yearly earn a median average of $18,000 (or $10.22 per hour). What this means is that a large section of our society can't afford even small mistakes, let alone major emergencies. It only takes one bad move or shock for a low-wage worker to be irrevocably thrown into a catastrophe. CBS's post about the Brookings report appeared the day after it aired the 60 Minutes episode on Seattle's homeless crisis.
(Excerpt) Read more at thestranger.com ...
Im not buying those numbers.
“There is all the difference in the world between treating people equally, and attempting to make them equal.” – Frederich Haye
When median and mean income are determined in the US, it is calculated for people 15 years old and up. Statistics are a minefield of potential misinterpretation. I’m not sure about the 60 minutes claim, but my bet is that it would look substantially different if the statistics were looked at in more depth.
Did they mention tax rates?
Today the tax rate on $18k for a single person is 12%. In 1980 I almost cracked $10k gross income for the first time and the tax rate was 21%. No deductions, I paid the full 21%.
Lots of these people have other breadwinners. Beyond that, most likely collect welfare. Finally, there’s a huge off-the-books labor market.
Another way to look at it - Americans aren’t starving to death, other than the poor kid in Florida whose parents would feed him meat.
“Im not buying those numbers.”
I work in employee benefits for thousands of groups and see the payroll numbers. They are correct give or take a few percentage groups.
Of course depends on location. These are fairly accurate Midwest and flyover country numbers.
We drove across 3 states last year and saw lots of help wanted billboards. Most were 11-12.00 hr.
I have said for years you have 45% of the people doing really well. Rest are struggling.
read something recently discussing the median annual us salary is around 30-32k, so certainly possible...
of those 45% I wonder how many are govt workers of some sort......govt workers always make out well...
Don’t know if those numbers are true or not, but assuming they’re true, it’s important to remember that there are other things to consider.
First, this number represents the median income for individuals, not families. So it’s a stretch to suggest that all these people are one misstep from financial ruin.
Also, one has to consider that some percentage of these people are already receiving some form of financial assistance like food stamps. Such aid obviously effects their financial situation but is not reflected in this statistic.
Also, one should consider take home pay when assessing income. Under Trump’s tax plan someone earning $18,000/year gets to keep more of it.
Beyond that, of course it would be nice to see median income increase. Not sure what it was pre-Trump, but I do know a greater percent of people have jobs now than they did under Obama.
How many of those jobs are entry level; how many of these jobs are held by workers who are part-time either because they are students, moms who only work evenings or weekends, or just people who like to only work a little for other reasons??
Not everyone who earns a salary has a career job.
I made 18k back when I was 22.
You could barely live on that in 1976 and for sure you can’t live on it now.
“of those 45% I wonder how many are govt workers of some sort......govt workers always make out well...”
What I have noticed in the groups I administer the owners and managers, key people, technical staff are doing great but rank and file not so much. I started seeing this trend in the early 2000’s.
A good friend works for a major soap manufacturer. Years ago production staff on the floor started at $18 hr and soon went up to $23-24 hr with lots of overtime and full benefits. Non union.
10 years ago the company started hiring temp workers from temp agencies at $11.00hr. No benefits. 10 years later it’s still $11.00 hr.
Unless you have a skill today your really are screwed.
Yes on gov’t workers.
Reported income.
The median earnings might be that low. But that is not what isusually used. You cannot compare different sets of statistics. The most often use is the median household income.
If people are not filing taxes then they are not going to be counted
I would love to see the report that states this figure as I am sure there are lots of differences beside the obvious “individual vs household.”
In 1976 the tax rate on $18k was 34%. Now it is 12%. That helps a bit.
Not mentioned is people move up and down in income. Sometimes you work at some some crummy job sometimes you don’t work at all and sometimes you get a well paying job. If you save up money during the good times you do better in in the bad times. With so many greedy Government hands looting us it gets harder and harder to save anything.
I’m guessing A LOT of those wage earners are teenagers or part time workers, or are in households with more than one income.
For example, my wife earns a bit under $18k a year as a preschool teacher at a local parochial school — but that doesn’t count benefits (meager tho’ they be, they still help in the long run.) It’s no “part time” job, though: She started (with no pay, and even us kicking in some for supplies, and me helping with some of the work that required muscle or, simply, 2 people) fixing up and setting up her classroom (included repairs and painting) 2 weeks before classes started). Once classes started, she usually stays at least an hour after the kids go home, and when she comes home she typically spends 2-3 hours an evening on lesson plans, various prep, and other work. I don’t really want to think about the $ per hour, or the gas in and out (over 30 miles round trip) each day. Hopefully she’ll land a spot as a kindergarten or 1st grade teacher next year (better pay).
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