A minimum wage is defined in law as the lowest hourly rate that employers can pay workers, except for those workers who receive some of their compensation in tips. In my faraway youth I was a high school student working 30 hours a week in a retail store for the minimum wage of $1 an hour, while still carrying the usual course load of five subjects I was the poster child for those who received such low pay, a teenager in an entry level job who didn’t need to work to put a roof over her head or food on the table. But then and now, a minimum wage was not just for teens working for pocket money or, in my case, to save up enough to attend college. Then and now, there were the working poor. Even two minimum wage jobs would not get a family of four out of poverty.
In 2009, Congress increased the minimum wage to $7.25. There it has rested for the following 17 years while the cost-of-living continued to rise. Both the public and private sectors use the Consumer Price index to adjust lots of other things –income tax brackets, Social Security benefits, and many wage contracts. But not the minimum wage. If it had been adjusted for inflation, the minimum wage today would be $11.78–not a princely sum but a lot better than $7.25.
Thirty states have their own required minimum wage, ranging from $8.75 in West Virginia to $18.40 in the District Columbia. Washington has the highest state level at $17.13. South Carolina is one of the 20 states that do not have a separate minimum wage, but it would be hard to find an employer who could find or keep even the least skilled workers at$7.25 an hour. Currently, wages in South Carolina start around $14-$16 for low- skill entry level workers. Working full; time year-round at $7.25 would leave that hard working person still below the poverty level.
A living wage is the minimum income or hourly wage a full-time worker needs to afford a basic yet decent standard of living—including food, housing, healthcare, transportation, and childcare. It varies with location, especially the cost of housing. In the United states, the range of living wage for a single worker is $15 to $20 an hour. The range for South Carolina is $15 to $16.
One step that Congress could take that would not be costly but very meaningful would be to increase the minimum wage to $11.78 and thenceforth to adjust it every year on January 1st based on the increase in the Consumer Price Index, the same price index used to adjust Social Security benefits.
