For most of us, costs for every day things have gone up. The “war” in Iran, Trumps constantly changing tariffs, corporate greed, pick a cause, any cause, they are all contributing factors. Things are not affordable for many Americans.
I’ve written about this in the past and this needs an update. Let’s look at cost compared to the current federal minimum wage, the average starting pay for many retail outlets, and a few iterations of other pay thresholds that may be out there currently.
The current federal minimum wage is $7.25 an hour. For tipped employees it is $2.13 an hour with the expectation that with tips, the average will come out to at least $7.25 an hour. Several retail outlets are hiring floor associates at $10 an hour. Some retailers hiked the starting wage to $15 an hour. Other general employers are paying $20 an hour.
Most of these jobs are considered “unskilled” or rather, they have a base qualification set, no college degree required, high school diploma or GED, none to minimal years of experience. Roughly 49%+- of the population hold an associate degree or greater, so the other “half” would fill the labor pool for “unskilled” jobs. Yes, I am glossing over trades, etc., for the moment as those can pay higher with certification, experience/OJT (on the job training), or apprenticeship. And I am not accounting for “Votech”. Those areas could account for 21% +- of the population, which still leaves 30% +- filling what I’ll call a “regular” job.
Let’s build a table or two lining out pay at each scale vs costs for common items, nothing fancy, just basic items most people need to buy on the regular to survive ( and note I said “survive” not “thrive“).
I’m going to start off with just 1 day (no taxes), 8 hours vs a simple list of groceries (the base brands, nothing fancy) then we’ll expand and look at monthly expenses.
| 7.25hr | 10hr | 15hr | 20hr | Gen Costs |
| $7.25 | $10.00 | $15.00 | $20.00 | Milk -$4.50 |
| $7.25 | $10.00 | $15.00 | $20.00 | Bread-$2.97 |
| $7.25 | $10.00 | $15.00 | $20.00 | Eggs/12- $2.86 |
| $7.25 | $10.00 | $15.00 | $20.00 | Lunch Meat-$3.99 |
| $7.25 | $10.00 | $15.00 | $20.00 | Mayo-$4.48 |
| $7.25 | $10.00 | $15.00 | $20.00 | Tomato-$1.97/lb |
| $7.25 | $10.00 | $15.00 | $20.00 | Lettuce-$1.95 |
| $7.25 | $10.00 | $15.00 | $20.00 | Hamburger-$8.29/lb |
| Total | Total | Total | Total | Total |
| $58.00 | $80.00 | $120.00 | $160 | $31.01 |
My grocery list is still missing several items for the basics but even that simple list takes a big bite for the 7.25 and 10 an hour folks. We’re also missing several other “living” costs.
Let’s look at monthly incomes, and note taxes vary based on filing status but we’ll assume single for the moment. We’re also assuming no state income tax. The totals below vary slightly if you calculate based on 52 weeks per year.
| 7.25x 40hrs ,4 weeks | 10x 40hrs, 4 weeks | 15x 40hrs, 4 weeks | 20x 40hrs, 4 weeks | |
| Monthly | $1256 | $1733 | $2600 | $3466 |
| Taxes: (2026 brackets) | -$114 | -$198 | -$364 | -$535 |
| Total | $1143 | $1535 | $2236 | $2932 |
| Yearly | $15080 | $20800 | $31200 | $41600 |
And for the sake of argument, let’s dispel a major political talking point about taxes. There’s always talk about tax breaks for the middle class, ok, but they come at the end of the year, not when taxes are being taken out which is where the pain is so they are of no real help in the day to day living situations of many workers.
For a point of reference, The national poverty income line is $15960 for 1 person, a household of 2 is $21640. State level benefits vary greatly for eligibility. We’ll continue without them being factored in.
Let’s revisit the “grocery” list and expand it to cover a few more items most folks will buy. Some of these will not last a whole month, some will go over depending on use.
| Item | Cost |
| Milk | $4.50 |
| Bread | $2.97 |
| Eggs/12 | $2.86 |
| Lunch Meat | $3.99 |
| Mayo | $4.48 |
| Tomato | $1.97/lb |
| Lettuce | $1.95 |
| Hamburger | $8.29/lb |
| Apples | $1.77/lb |
| Coffee | $7.98/lb |
| Juice (Apple, Orange) | $4.00 |
| Laundry Soap | $8.94 |
| Toothpaste | $2.50 |
| Soap (Bath soap) | $2.00 |
| Canned veggies (green beans, Corn) | $0.89 |
| Potatoes | $2.77/5 lb |
| Total | $62 |
Still missing things.
Now let’s add the big stuff. Rent.
The median rent in the US is $1379 (1 bedroom). And in many places that is not all inclusive like it used to be. That’s the flat rate, plus fee’s, amenities, renters insurance, etc. If you have a pet, add additional insurance, pet rent. Add utilities- gas, water, electric too. There’s also the deposit which is at least a months rent and you have to prove you earn 2 to 3 times your rent to even get approved. There’s the non-refundable app fee as well which can range from $75 to $150.
| 7.25/hr | 10/hr | 15/hr | 20/hr | |
| Monthly Income | $1143 | $1535 | $2236 | $2932 |
| Rent | $1379 | $1379 | $1379 | $1379 |
| Total Left | -$236 | $156 | $857 | $1553 |
Let’s subtract groceries and rent.
| 7.25/hr | 10/hr | 15/hr | 20/hr | |
| Monthly Income | $1143 | $1535 | $2236 | $2932 |
| Rent | $1379 | $1379 | $1379 | $1379 |
| Groceries | $62 | $62 | $62 | $62 |
| Total Left | -$298 | $94 | $795 | $1491 |
Getting the idea? We haven’t added in utilities (mentioned previously), no entertainment expenses. How about a car ? It certainly wouldn’t be new, so a used beater. You’d have to have at least liability insurance to drive, that’s minimum of $100 a month. Gas is still high across the country and this beater is NOT going to get great gas mileage. If you were lucky enough to live within the range of public transport; likely your rent is a bit higher for that convenience, while cheaper would still run $5 a day at least 5 days a week- so $100 a month.
And when the beater breaks down ? Who is saving at this point ? Diags are usually at least $100 and then whatever the repairs are.
What about medical insurance or expenses? Many wage jobs don’t hire full time so you won’t qualify for it. Getting coverage on your own is out range, and if you do happen to have a job that offers it, it won’t be cheap. You’ll get stuck paying for it but then not be able to pay to use it.
You’ll need a room mate, maybe two, which means more bedrooms so higher rent and utilities. Not looking to good all around.
We haven’t even touched on having kids. You might as well double everything. Daycare is almost as much as rent and if you’re a working parent you’ll need something. Afterschool programs are an option if they are still available, some still charge though less then standard daycare. Summer camps aren’t cheap. Wage jobs may also be shift jobs so you’re going to need somebody that can meet your irregular hours.
You get it at this point hopefully. Things are expensive and living on most wages is really hard. It isn’t sustainable. I would suggest voting for people who actually have solutions. A life long millionaire has no concept of how real people live. Stop electing them.
Stay Angry.
