Brookings Institute research “found that 53 million Americans between the ages of 18 to 64—accounting for 44% of all workers—qualify as “low-wage.” Their median hourly wages are $10.22, and median annual earnings are about $18,000.” 26% of low-wage workers (14 million people) are the only earners in their families, getting by on median annual earnings of about $20,000.
Lots of our neighbors, family and friends are laid off, furloughed or out of work. The current U6 unemployment rate including discouraged and part time workers looking for full time in April 2020 is 22.80%. 36.5 million workers have filed for unemployment. More people have lost one of several jobs and well under the poverty line.
The Manhattan Institute created a Cost of Thriving Index for the Middle Class. Rather than complicated inflation adjustments, it measured the cost of renting 40th percentile 3 bedroom home, car ownership, annual family medical insurance, and one semester of public college. These expenses are divided by median middle class weekly salaries. This determines how many weeks of work to cover expenses.
Results: In 1985, the average male worked 30 weeks to cover expenses. In 2018 salaries declined compared to expenses requiring 53 weeks. Women had it worse. In 1985 took 45 weeks to cover expenses. In 2018 required 66 weeks of work. Neither situation works for a single parent.
Is there any wonder people do not feel better off? Neither political party has been successful improving the life of workers. Both parties have failed the electorate.
Add in a significantly reduced global economy post Covid-19, we are looking at people needing help in large numbers. The federal, state and local governments are seeing drastically reduced tax revenues which will add to the issue.
Some Republicans in DC are suggesting to reduce SNAP aka “food stamps” benefits in a pandemic. Are they GIVING the election to Joe Biden? Registered Republican here NOT voting for anyone supporting this horrible idea of starving vulnerable people.
Do not have a magic wand to make this go away. We are going to have to make tough choices and look for changes to help everyone thrive.
References below:
Why the ‘great’ jobs market was always an illusion
https://www.marketwatch.com/story/why-the-great-jobs-market-was-always-an-illusion-2020-05-14?mod=home-page
Why the average male can no longer cover basic expenses for his family
https://www.foxbusiness.com/economy/average-male-earnings-basic-expenses
The Cost-of-Thriving Index: Reevaluating the Prosperity of the American Family
https://www.manhattan-institute.org/reevaluating-prosperity-of-american-family
report
https://media4.manhattan-institute.org/sites/default/files/the-cost-of-thriving-index-OC.pdf
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