Correlation Between Minimum Wage And Poverty

According to the United States Department of Labor, the average annual income before taxes per consumer unit in 2014 was 66,877 a 2.8 percent decrease from 2013. In contrast, the average expenditures per consumer unit in 2014 was 53,495, a 4.7 percent increase from 2013. The bureau reports that in 2014 food cost rose 2.4 percent, housing cost increased 1.5 percent, transportation increased by .8 percent, gas prices decreased 3.9 percent, vehicle insurance increased by 9.8 percent, and health insurance rose by 8.2 percent (http://www.bls.gov/news.release/cesan.nr0.htm). Although America is one of the richest nations, many citizen are living below the poverty line because the current minimum wage has not sustained with the increasing cost of living. …show more content…
Minimum wage on the other hand, is the minimum dollar amount that a job in the United States can pay its workers, $7.25. Although minimum wage was last increased in 2009, the cost of living has increased drastically since then as well. Americans need a wage that will keep them from relying on government assistance and staying away from poverty. This paper will identify the correlation between minimum wage and poverty. It will present the cost of living in America in reference of minimum wage. This paper will pose a single sociological theory that may predict the benefits and consequences of increasing minimum way, as well as render solutions to this economic