[retiredguy123]

A lot of people don't realize that successful companies, like fast food restaurants, who hire mostly minimum wage workers, are actually being subsidized by the taxpayers. That is because many minimum wage workers are eligible for welfare, which the companies depend on to supplement the income of their minimum wage workers. So, the Federal Government is partnering with multi-million dollar companies to pay the low income workers.

[Aces4]

Originally Posted by OrangeBlossomBaby

Once upon a time minimum wage was created to provide workers a living wage, assuming they were working full time jobs.

Someone working a full time job at minimum wage now, would not be earning a living wage.

Wrong, that's not true at all. If I hadn't been living with my parents when a teenger working full-time for minimum wage, I wouldn't have been able to float my boat no matter how carefully I lived. Needless to say, I worked hard to advance beyond minimum wage doing jobs most wouldn't want to do for a living.

[Aces4]

Originally Posted by retiredguy123

A lot of people don't realize that successful companies, like fast food restaurants, who hire mostly minimum wage workers, are actually being subsidized by the taxpayers. That is because many minimum wage workers are eligible for welfare, which the companies depend on to supplement the income of their minimum wage workers. So, the Federal Government is partnering with multi-million dollar companies to pay the low income workers.

Yep, the Federal Government killed incentive to improve, why bother under those circumstances?

[OrangeBlossomBaby]

Originally Posted by jimhoward

When was minimum wage a living wage?

My first job was in 1970 and paid the minimum wage, which at that time was $1.75/hour (in Massachusetts). You could not live on $70/week in 1970. I was a dependent kid, so didn't care. Fast forward to the present time, where the minimum wage in Florida is $15/hr ($10.95 for tipped employees). You cannot live on $600/week.....but its almost feasible. Was there a time in the middle that I am forgetting about when the minimum wage was a living wage?

The federal minimum wage hit its highest inflation-adjusted value in 1968 (peaking around $1.60 per hour. At that time, full-time work at the minimum wage was enough to lift a family of three out of poverty. This wouldn't have been true in NYC, or other metro areas that typically have higher costs of living. But someone in the suburbs somewhere in Tennessee, or Wyoming, or Virginia, or Ohio - would have been able to get out of poverty with full-time minimum wage work.

That is WHY it was created. To lift people out of poverty. That doesn't mean a family of 5 living in a condo in Manhattan should be able to get a popsicle from the Hoodsie man every night after a 3-course dinner, and weekend treats at McDonald's. It meant - having shelter with a fireplace or heat and running water, enough food to not starve, and shoes that don't have holes in them, and a winter coat if needed.

Even as late as 1980, many states had a low enough cost of living that a couple each working a full-time minimum wage job would be able to manage a household budget, be decently fed and clothed, have utilities and transportation.

[OrangeBlossomBaby]

Originally Posted by jimhoward

When was minimum wage a living wage?

My first job was in 1970 and paid the minimum wage, which at that time was $1.75/hour (in Massachusetts). You could not live on $70/week in 1970. I was a dependent kid, so didn't care. Fast forward to the present time, where the minimum wage in Florida is $15/hr ($10.95 for tipped employees). You cannot live on $600/week.....but its almost feasible. Was there a time in the middle that I am forgetting about when the minimum wage was a living wage?

also - I lived in Boston, on Charles Street, in 1983. My studio apartment behind an antique shop was $425/month for rent including heat and hot water. Minimum wage was $3.35/hour, but $5.03/hour if you worked on Sunday. If I had a spouse or significant other, we could've both worked full time, and lived fairly comfortably.

As it was, I did have two part-time jobs, both paying minimum wage. But one of them was at a taco joint and I ate free when I was there, saving me around $15/week in food costs. And I also played guitar for tip money part time, which earned me enough to pay the rent. My part-time jobs covered the non-rent bills and incidentals.

[margaretmattson]

Originally Posted by justjim

In fairness, the raises in the minimum wage had very little to do with the recent costs of groceries, gasoline and etc. IMHO.

Increase in wages means companies must make adjustments to keep their profit the same. Increasing the cost of goods is a way to offset the loss in profit.

[jimhoward]

Originally Posted by OrangeBlossomBaby

The federal minimum wage hit its highest inflation-adjusted value in 1968 (peaking around $1.60 per hour. At that time, full-time work at the minimum wage was enough to lift a family of three out of poverty. This wouldn't have been true in NYC, or other metro areas that typically have higher costs of living. But someone in the suburbs somewhere in Tennessee, or Wyoming, or Virginia, or Ohio - would have been able to get out of poverty with full-time minimum wage work.

That is WHY it was created. To lift people out of poverty. That doesn't mean a family of 5 living in a condo in Manhattan should be able to get a popsicle from the Hoodsie man every night after a 3-course dinner, and weekend treats at McDonald's. It meant - having shelter with a fireplace or heat and running water, enough food to not starve, and shoes that don't have holes in them, and a winter coat if needed.

Even as late as 1980, many states had a low enough cost of living that a couple each working a full-time minimum wage job would be able to manage a household budget, be decently fed and clothed, have utilities and transportation.

The minimum wage is not that far off from tracking the poverty level. In 1968, as you say, the minimum wage was about $1.6/hr. The poverty income level was somewhere just under $3000/year. Today the minimum wage is $15, and the poverty income level is a bit under $30,000/year (family of three, florida).

We also have a lot less people, percentage-wise in poverty now than we did n 1968, so I think we are doing something right.

[Retiredsteve]

Originally Posted by margaretmattson

The minimum wage went up a few dollars but the price of groceries increased more than the wages. IMO, they should have left well enough alone. The result is more loss than gain.

Are you blaming the price increase in groceries and oil on the minimum wage increases?

[margaretmattson]

Originally Posted by Retiredsteve

Are you blaming the price increase in groceries and oil on the minimum wage increases?

Partially. If the majority of your employees are paid minimum wage: fast food, restaurants, retail stores, GROCERY stores, etc. a forced minimum wage increase will hurt your profit. In Florida, the minimum wage mandate forced employees to increase wages from $10/hr to $15/ hr over a span of a few years. Other states had similar mandates. When this occurred, the first noticeable rise in prices were fast food and restaurants. I am not the only one who believes this. It was covered by most news outlets Seemingly overnight, a burger and fries meal doubled in price. Restaurant prices soared. Shortly after, prices on store shelves went up. Think about it. If an establishment like a grocery store has 20 minimum wage workers per shift, the company is now forced to pay $100 extra per hour than a few years ago. Oil prices are a different reason.

[RoboVil]

Interestingly, the poverty rate is low. It was 10.2% in 2025 the lowest ever recorded.

[MichiganKid]

I definitely agree, when the govt raises min wage a dollar the outcome to expense to the public is two or three fold. The businesses are going to more than make up what they have to encour in paying higher wages.

[Nordhagen]

Originally Posted by MichiganKid

I definitely agree, when the govt raises min wage a dollar the outcome to expense to the public is two or three fold. The businesses are going to more than make up what they have to encour in paying higher wages.

I’m not sure if it’s 2 or 3 times but for every raise in wages, there are associated costs to an employer. Such as increases to social security and Medicare share, unemployment insurance, both state and federal, and worker’s compensation insurance. These are the hidden consequences to employers for the raise in pay and eventually, the customer.

[TomPerry]

I remember working for $0.85/hour minimum wage (in Massachusetts) when I was a school kid! Minimum Wage was never meant to be a living wage. It was meant to be an incentive for people entering the work force, to gain and develop work skills, and an incentive to improve yourself. If people are working a minimum wage job all their lives and trying to raise a family on that, they failed themselves at a young age.

[G.R.I.T.S.]

Originally Posted by dewilson58

First step was McDonald's to automate burgers and eliminate staff.

Starbuckies automated coffee making, resulted in eliminatng staff.

Now Sam's Club is automating pizza making and eliminating staff.

Sounds great to raise minimum wage rates, but there are consequences.

I have long believed that a higher minimum wage did nothing more than raise the poverty level because of increased prices to cover said wages.

[MrFlorida]

How come minimum wage doesn't apply to waiters and waitress ? Then there would be no need for tipping.