Hijacking of Minimum Wage

For the past couple years you have all heard or read the term "Living Wage" used alongside discussions and debates on the minimum wage. I am curious, who decided that the minimum wage was meant to be wage that one can live on? As far as I know and remember, that was not the case when I was a young man starting out in the world of employment. In 1978, before I graduated high school, I was flipping burgers at a local chain fast food restaurant. I was making minimum wage at that time, or $2.65 per hour. Also note that this job and many like it  in the time had no other benefits! No paid sick days, no paid vacation days, and no health insurance. When I graduated from high school in 1979 minimum wage was increased to $2.90 per hour. By then I had moved on to a job delivering auto parts for a small independent auto parts store, and was making a decent $5.00 per hour. Still no other benefits, but a decent step above minimum wage. But this isn't about me, it's about minimum wage versus living wage.

In 1979 if you were working full time (40 hours) getting paid minimum wage, you were making just under $120.00 per week. Don't forget, that is before taxes. Not exactly sure what the various tax rates were back then, but after state and federal income tax, FICA, and medicare, you were probably left with about $80.00 (give or take) of take home pay. Do you honestly think that $320 per month was a living wage in 1979?! If you were living on your own you would then have rent, utilities, medical bills, groceries, auto expenses (insurance, gas, maintenance, registration fees), and a host of other miscellaneous expenses. I don't think so. Back in my day, the people my age who were living on their own were either working 60 to 80 hours per week, were getting paid more than minimum wage as they proved to be valuable employees, or both.

So when did minimum wage get hijacked to supposed to mean a living wage? And how did the magic $15.00 per hour figure come about. This Department of Labor chart shows that the 1978/1979 minimum wages are equivalent to about $9.00 per hour in 2012 dollars. That's only 60% of the $15 number we hear tossed about regularly. And hell, in some areas of the country even $15.00 per hour is probably not a living wage. Looking at the chart mentioned you should also pay attention to the first federal minimum wage, a mere $0.25 per hour in 1938. Which is a mere $3.98 in 2012 dollars.

But that's the point. Historically the minimum wage was never meant to be a living wage. Read up on the Fair Labor Standards Act of 1938. The minimum wage is just that, a minimum that employers are directed to pay. For that reason, it is usually the people just entering the work force that are getting paid this minimum. Mostly, it's what an employer will pay someone with no experience, background, etc. Or for jobs that see a lot of turnover, like flipping burgers at a fast food restaurant.

Does this mean I don't believe the minimum wage should be raised at all. No. Looking at the DOL chart again, I believe a minimum wage in the $9.00 to $10.00 range would be a good idea. I just don't believe that it should be construed as a "living wage".