Professional Documents
Culture Documents
Sierra Christensen
ENGL 2010
26 April 2018
Poverty is a widespread, harrowing issue, and our best tool to fight the rampant American
in-work poverty is through raising minimum wages and living wages. A minimum wage is the
lowest amount an employer can pay its employee, and has a great effect on the amount and depth
of in-work poverty in a nation. Unskilled workers who cannot afford to get the education needed
for a higher income still need to support themselves and their dependents. A living wage is the
hourly wage that it would take for a certain number of people (usually calculated between one
and five) to live just above the poverty line, which usually varies between states. The concept of
minimum wage is contested because some negative repercussions are believed to overpower the
overall benefit of minimum wages. Raising the minimum wage, to a living wage for adults, can
improve the quality of life of workers and their families in many ways, end the vicious cycle of
poverty, and help the millions of impoverished children who cannot help themselves.
Firstly, I would like to address the issue of bias, so I begin with a personal story. When I
was fourteen, my dad left my mom and has since brought her to divorce and custody courts
repeatedly, slamming her with tens of thousands of legal fees and attorney payments over the
past five years. My mom, siblings and I moved in with my mom’s parents, who had to take a
second mortgage out on their house to help pay for all the court and attorney bills.
Even though my mom found a decent job and was able to become slightly more self-
sufficient, her debt continued to rise and my little siblings and I could feel the rising pressure.
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Eventually, we had to get food stamps because my dad wasn’t paying child support and was
making everything as difficult and expensive as possible on our family. It is not physically
possible to communicate the stigmatized shame we felt when we had to ask the government
officials for food stamps, or the unconditional judgment from every cashier.
Throughout all of high school, I wasn’t able to participate in anything that cost more than
$10; including sports, clubs, dances, etc. I got a job the summer I turned fifteen so that my
siblings and I could participate in those activities. Doing so also provided me with the
My situation for the past five years has been terrible. However others’ are much, much
worse. I tell you this not to evoke pity or take a cheap-shot at your humanity, but only to show
where my personal experience fits into this argument, and to demonstrate that I know what a
small amount of poverty over a short period of time feels like intrinsically, especially from a
child’s perspective. Luckily we did not have to depend on a minimum wage income, but my
experience lead me to research what solutions could lead all those experiencing in-work poverty
who have jobs are still in poverty. The current poverty line for a family of four is at $24,858
(United States, Congress, Wage and Hour Division). It is not possible to meet this line on a
minimum wage salary. A full-time minimum wage worker gets $14,500 for 40 hour weeks, 50
weeks a year, and according to economic reporter Michael Kinsley, most large corporations like
Walmart could pay their employees this much without losing large portions of profit (Kinsley).
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With higher education becoming more expensive and more commonly required for higher-wage
jobs, too many people and their families are left behind to perpetually struggle. My mother was
able to get a job above minimum wage since we were in a small town and she had some previous
office and bookkeeping experience. However without her past experience and my grandparents
to fall back on, we would have been forced to live in a women’s or family shelter—where we
would have joined 88,024 women and children worldwide who are found in shelters (“Global
Shelter Data”).
These women and children have entered what is called the cycle of poverty. It may sound
like a cliche name, however it is a devastating trap for literally millions of Americans. It can
begin in a variety of ways: a parent loses their job, the economy crashes, a health issue arises or a
natural disaster greatly affects a person’s means and livelihood, divorce (typically for women),
If the head(s) of household have kids or dependents, then they are dragged into poverty as
well. Without adequate assistance from the government, extended family, or other sources, they
stay impoverished perpetually. In reality, the cycle of poverty means that those kids whose
parents were victimized by a negative event or even if they just “messed up” are raised for an
extended period of time near or below the poverty line. This robs those children of experiences
and resources available to those higher above the poverty line, like a square three meals a day,
not being constantly worried about your family’s economic well-being, school sports,
extracurricular programs, or even new clothes every year, or family vacations once in a while.
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From personal experience, I know the residual burden slammed onto kids when they are thrust
Impoverished Children
Children are a huge percentage of Americans in poverty, and these children are never to
blame for their family’s financial situation. Children cannot work or earn money for themselves,
number of children in poverty exceeded 28 million, which is about 41 percent of all American
Now, these children are not being ignored by the government or other social outreaches,
but these services are meant to subsidize a lower class income, not to compensate for poverty.
For example, the USDA started a program in the summer of 2017 called the “Summer Food
Service Program” to provide over 200 million free meals to children under 18 while school is not
in session (“Summer Food Service Program”). Those older than 18 can also purchase those
meals for only a few dollars to eat a hot meal with their children.
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There are other similar programs for poor children, but all of these programs have
incredibly limiting stigmas surrounding them. To prove a point, no one actually knows how
many peers in their high school or grade school qualified and/or partook in free or reduced lunch,
even as someone who did make use of that program. No one ever talked about it and avoided
bringing it up in any conversation. As another example, college students joke about being broke
and showing up to any event where pizza is promised, but only because we have a very obvious
If one’s financial status is anywhere close to poor, and one feels that it is their fault—then
said person will not share that fact. Whether it is a student getting free school lunches or another,
we are all afraid everyone will think less of us if they knew our socio-economic standing. We
fear that once someone realizes that we are actually in need, they will immediately look down
with disgust—because how dare we make bad financial decisions or buy a house when the
market could crash at any time or have so many kids just in case your husband gets bone cancer
and has their leg amputated. All of these examples are not made up, but reality for some of my
In the meantime, these children cannot do much to help the financial situation of their
families. One of the most common responses for urban children in poverty is to join a gang. An
expert on the relationship between impoverished children and crime, Robert Muller of the
Psychology Today journal came to the conclusion that poverty, growing up in broken homes, and
domestic violence are the top reasons for children joining gangs, as well as seeing the gang as a
replacement family that will better provide financial support and social status than their actual
family (Muller). Of course, growing up in poverty and joining a gang are both huge proponents
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to dropping out of high school and never receiving a higher education. This further perpetuates
the cycle of poverty, as any kids either impoverished children or more specifically
Now one always hears about those stories where people escaped poverty with “some hard
work and determination”. While escaping poverty often requires these attributes, it is nigh
impossible without help from encouraging teachers and role models, and government assistance
in the form of food stamps, Pell grants, temporary assistance for needy families (TANF),
When looking at the number of social programs available to those in poverty, and the
technically low percentage rates of Americans actually in poverty, it would seem logical that
poverty is to be shortly eradicated. Instead, as quoted in a New York Times article summarizing
all that has been done in the name of stopping poverty, Ronald Reagan said, “We fought a war
on poverty, and poverty won” (Edelman). There are many possible reasons for this failure, one
could be that our national economic situation is not capable of raising 40 million Americans
above poverty. Perhaps Americans are more focused on their individual rights than on those of
their fellow community members. Whatever the reason, the real argument is how to win this war
on poverty.
Although it has innumerable benefits for millions of people, raising the minimum wage is
not a perfect solution and can have some negative effects. Those who oppose higher minimum
wages usually focus on the potential job losses, the possibility of corporations moving jobs out of
the United States, the closing of smaller business who won’t be able to adjust to the higher
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wages, and the loss of job growth in times to come. Most of these are likely, though not in the
As mentioned above, raising the minimum wage is not ideal, and there are many
implications involved, but it is easily proven that it is the best solution. Some jobs would be lost
from layoffs to some corporations may move their jobs out of the States. Opposers like to argue
that middle-class teens who live at home and have jobs for spending money will benefit from a
minimum wage increase more than adults. However, when compared to the many guaranteed
benefits to the millions of workers and their families, these possible drawbacks are rather
the US by age. This shows that 90 percent of all minimum wage workers are nineteen or older,
which means the vast majority are likely in college, saving for college, in a family, or saving for
a family. It makes logical sense that these people would need to make more than $14,500 a year,
Several reliable sources have calculated the possible job losses from raising the minimum
wage. An article by Annie Lowrey, the current New York Times economic policy reporter
continues, summarized the Congressional Budget Offices’(CBO) study that was conducted after
President Obama proposed to raise the minimum wage in 2016. In its estimation of job losses,
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the CBO determined that about 0.3 percent (approximately 500,000) jobs would be lost from
raising the minimum wage and indexing it to inflation, if even that—the complete range was zero
to a million jobs lost (Lowrey). This means that the CBO, a trusted bipartisan governmental
group admits that even in the worst-case scenario, a million jobs are lost in order to support 41
million workers.
“threat” from major companies that are already making billions a year in profits, who get tax cuts
from our government just for being in the US (Rogers). As dubious as this sounds, it is always
possible that some companies will follow through on this threat. However, it is only a possibility,
and when compared to the guaranteed positive results, there is less to fear and more to look
forward to.
Other proposed solutions are basic expansions of the social programs and safety nets
already offered, especially Earned Income Tax Credit or EITC. EITC is a refundable tax credit
low-wage families can receive when they file their tax returns and has run since 1975. However,
this system has a work disincentive, meaning that the more hours one works, the less one gets
paid (Quinn). Obviously, this program is not effective, since poverty has only increased since
1975 when the program was initiated, and this leaves minimum wage with the most benefits and
Yet, the potential dangers of raising the minimum wage and installing a living wage are
one reason why the minimum wage has stayed so low. Combined with the gridlock that happens
in Congress every time minimum wage is discussed and the polarity of citizens who do and do
Proposal
From comprehensive research of studies, raw statistics and the results of post hoc social
experiments, a possible solution can be formed. This solution would be to induce a local living
wage. As said by Eric Rosten in an article describing and analyzing the effectiveness of living
wages, a local living wage is the wage determined to be the amount needed to sustain life just
above the poverty line for a certain area (Rosten). It would be determined at local levels, at the
State level at least, and perhaps county and/or city if requested by citizens. In order to prevent
the drastic discrepancy of price inflation and wage inflation, the local living wages would be
adjusted annually for inflation by the State departments of labor, county councils (if applicable),
or city councils.
In order to address the common concern of teenagers being paid more than is good for the
economy, there would be a built-in clause for age-based exceptions. This may sound
questionable, but the United Kingdom has a system of living wages and a national minimum
wage, based on ages that has worked for several years (Wills). On the United Kingdom’s
government website, the system is explained. If you are at school-leaving age (18-20) you
they are 24, and when one turns 35 they qualify for the national living wage—the amount it takes
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to live decently in the UK besides in expensive London (“National Minimum Wage...”). This
It is important for the wages to be tied to inflation and adjusted every year because inflation has
been skyrocketing and wages have been left in the dust, as seen in the chart to the right.
Conclusion
Raising the minimum wage, specifically to a living wage for adults, can end the vicious
cycle of poverty, improve the quality of life of workers and their families in many ways, and
help the millions of impoverished children who cannot help themselves. In-work poverty is such
a rampant problem, and our best tool to fight it is through living wages. Despite minimum wages
and living wages being highly contested, the benefits of the proposal definitely outweigh the
Works Cited
DeSilver, Drew. “5 Facts about the Minimum Wage.” Pew Research Center, Pew Research
www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimum-wage/.
Edelman, Peter. “Why Can't We End Poverty in America?” The New York Times, The New York
why-cant-we-end-poverty-in-america.html.
“Global Shelter Data Count.” The Global Network of Women’s Shelters, Nov. 2015.
Kinsley, Michael. "Walmart Can Solve the Inequality Problem." New Republic, vol. 244,
search.ebscohost.com/login.aspx?direct=true&db=aph&AN=90544944&site=ehost-live.4
Koball, Heather, and Yang Jiang. “Basic Facts about Low-Income Children.”National Center for
Lowrey, Annie. "Study Finds Mixed Effect in Changing Wage Law." New York Times, vol.
search.ebscohost.com/login.aspx?direct=true&db=aph&AN=94487942&site=ehost-live.
Muller, Robert. “Poverty, Broken Homes, Violence: The Making of a Gang Member.”
blog/talking-about-trauma/201308/poverty-broken-homes-violence-the-making-gang-me
mber.
“National Minimum Wage and National Living Wage Rates.” GOV.UK, United Kingdom,
www.gov.uk/national-minimum-wage-rates.
Christensen 12
Quinn, Joseph F. and Kevin E. Cahill. "The Relative Effectiveness of the Minimum Wage and
the Earned Income Tax Credit as Anti-Poverty Tools." Religions, vol. 8, no. 4, Apr. 2017,
Rogers, Brishen. "Justice at Work: Minimum Wage Laws and Social Equality." Texas Law
Review, vol. 92, no. 6, May 2014, pp. 1543-1598. EBSCOhost, dist.lib.usu.edu/login?
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host-live
Roston, Eric, et al. "How Much Is a Living Wage?." Time, vol. 159, no. 14, 08 Apr. 2002, p. 52.
EBSCOhost, dist.lib.usu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=
true&db=aph&AN=6417295&site=ehost-live.
“Summer Food Service Program.” Food and Nutrition Service, United States Department of
United States, Congress, Wage and Hour Division. “History of Federal Minimum Wage Rates
Under the Fair Labor Standards Act, 1938 - 2009.” History of Federal Minimum Wage
Rates Under the Fair Labor Standards Act, 1938 - 2009, United States Department of
Walsh, Mary E. and Maria D. Theodorakakis. "The Impact of Economic Inequality on Children's
Development and Achievement." Religions, vol. 8, no. 4, Apr. 2017, pp. 1-12.
EBSCOhost, doi:10.3390/rel8040067.
Wills, Jane and Brian Linneker. "In-Work Poverty and the Living Wage in the United Kingdom:
Image Citations
DeSilver, Drew. “5 Facts about the Minimum Wage.” Pew Research Center, Pew Research
www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimum-wage/.
McMahon, Tim. “Cumulative Inflation 1913-2013.” Inflation Data, Tim McMahon, 1 Apr. 2014,
inflationdata.com/Inflation/Inflation_Rate/Long_Term_Inflation.asp.
Kopczuk, et al. “Cumulative Change in Real Annual Wages, by Wage Group, 1979-2012.
ballotpedia.org/File:EPI_Change_in_Wages2014.png.
Kramer, Julie. “Summer Food Service from Project Bread.” BDCWire, Boston , 5 Aug. 2015,
www.bdcwire.com/summer-food-service-from-project-bread/.