Few things nowadays come as cheap as someone’s time.
The current minimum wage in the US is $7.25, and the last time it was raised was in July 2009. The last five years, however, have seen an increase in prices of everyday items like meat and dairy, as well as utilities, tuition and transportation.
In 2013, there were about 3.3 million US workers who were paid at or below the federal minimum wage. Over 1.7 million of those were paid below the minimum wage, which might be because the current federal tipped minimum wage is $2.13. As Americans’ wages remain stagnant, and they continue to live pay check to pay check, it’s worth considering what people can afford, and what purchases they might have to give up.
Things like books, and nights out at the movies, become a luxury. Last year, the price of movie tickets reached the all-time high, with tickets costing on average $8.38. Premium 3D or Imax tickets cost an additional $3 to $5, reaching as high as $15 in cities like New York. Prices of books have also continued to increase each year. In 2012, a paperback, at $8.72, would cost you more than an hour’s pay, according to the Library Network.
But forget about luxuries for a second. What about food? The price of all meat, including chicken, have gone up in 2014. Fish has gone up by 4.2%. California droughts have led to higher prices in things like avocado, grapes, lettuce and tomatoes.
If this trend continues – with prices rising and wages remaining stagnant – there will be very few items that one could afford for one hour’s pay. Some companies have realized this and have begun raising their wages. This month, all Walmart employees will be paid at least $9 an hour.
Your turn: What price hikes have hurt you the most? What can you buy for your hourly pay?
