Monday, February 21, 2011

Session 6

This week we got into some very detailed information pertaining to poverty and it's association with wages. I found it very interesting especially since we had just done our group exercises, and a lot of our research done prior really helped to tie the information together.

1/2) Who do you think is poor, both in the United States and globally?Why do you believe people are poor in the United States and globally?Why do you believe people are poor in the United States and globally?

It is easy to draw the conclusion that those paid at the minimum wage level, or very close to, would be those that were considered poor. An interesting portion of our reading this week included the self sufficiency standards that were county wide for Georgia. I compared the income that would be considered standard, in other words, would provide the basic/mandatory amount of money to pay for the necessities, in 2 counties. Since I lived in Dekalb, I looked it out and the month self sufficiency earning minimum would be $2,495 (minimum wage would need to be $14.18 to meet that monthly cost.) I compared that to Appling County (a smaller county in Southeast GA) and the self sufficiency earning minimum would be $1,843 (with minimum wage needing to be $10.47.) Now it is easy to understand why these two counties would have over a $650 difference. A metropolitan area versus a rural area will run your rent higher,child care higher, etc. But then I began wondering.....If minimum wage is a set amount state wide, what makes up that huge gap in necessary earnings? If you made minimum wage according to county, which would solve some of the blows to the counties who would need to earn more compared the overall state needs, then I think it would be very easily for companies to move to surrounding counties in order to save money by having jobs that required less pay. I think it is important for us to understand that people living solely off of minimum wage paying jobs, or other jobs such as tipped jobs (waitressing, deliveries) that offer a $2.13 hourly rate, will consistently struggle with living a life above the poverty line. Monthly expenses will typically exceed the income brought into the household, and will leave people with little (more likely no) additional money after the basic necessities are paid for.


3/4) What do you think is being done about poverty (e.g., specific policies and programs in the United States and globally) and how well do you think poverty is being addressed?What do you personally think should be done about poverty in United States and globally (e.g., specific private and government policies, programs, etc. that you would recommend)?

Some specific include the Equal Pay Act of 1963, offering Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility. The Fair Labor Standards Act is the Federal law which sets minimum wage, overtime, record keeping, and youth employment standards.

It is important to remember also that while there are some acts, laws, and support efforts that advocate the minimum wages, we have to understand what the minimum wage means to each individual family, and how easily it varies on family size, location, and regions. I really don't have an answer as to how we can help fix this common issue, other than what we have been talking about all semester so far....educate yourself on what the problems are relating to poverty, do everything in your power to avoid some of the leading causes (pursue higher education, job promotions, avoid lower paying jobs, etc.) and while of course that won't help everyone, knowledge is power and if you know some of the common causes to facing the poverty line, maybe it can help you avoid it somewhat....

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