The more I look at the minimum wage issue to more I believe it’s really a ‘maximum wage.’ It’s the maximum that employers want to pay employees for menial jobs. Ezra Klein has a report that says a full-time minimum wage job is not enough to live on. Unless you live with your parents or on the street.
There is no state in the union where a full-time, minimum-wage worker can afford to rent a one-bedroom apartment for less than 30 percent of his paycheck (which is a standard measure of housing affordability).
So, affordable housing is determined to be such when it does not exceed 30-percent of a monthly paycheck.
In Texas, a minimum wage worker needs to put in 73 hours a week to afford a one-bedroom unit. In California, it’s 92 hours. In the District of Columbia, it’s a solid 100 hours.
What would happen if the minimum wage was raised so that 30-percent of a monthly paycheck covered affordable standard housing? Rich people would cry.