D.C.’s current minimum wage is one of the highest in the country at $10.50 per hour as of July 1, 2015, and while that would imply that D.C.’s population is at least living comfortably, the opposite is actually true. The minimum wage, constant regardless of how many dependents a worker has, is far below the living wage for the area. The increase in income for the average worker in the District is in response to the wild disparity between socioeconomic classes. D.C., the first area in the United States to raise the minimum wage about $10 per hour, is in midst of an economic crisis.
The minimum wage and living wage are not the same number, and that is a problem. The living wage accounts for realistic needs, as opposed to the minimum wage, which accounts for basic needs. The Massachusetts Institute of Technology’s Living Wage Calculator estimates that cost of living in D.C. requires pay of $14.84 per hour for one healthy, working adult. A $5.00 difference between what adults are making and what they should be making is not that bad. Now, if that one adult has one child, the wage that person would need to live comfortably jumps to $30.42 per hour–that’s bad. The minimum wage does not increase with the number of dependents an individual has, so the gap between what that adult needs to be making and what she actually makes is close to $20. The living wage keeps increasing in relation to how many people the working individual is providing for. When we reach three children, an adult has to be making $49.19 an hour to support the children. The system does not account for children, and while there are different services provided to single parents, or even working couples, the resources are few and far between.
At Stone Ridge, we work hard to provide service to different organizations around the D.C. area, but most of those sites relate in some way to homelessness or visible poverty. Those sites are extremely important, and their value cannot be overestimated, but there is also a need for funds to go to families that are making minimum wage, but not living comfortably. One site that balances its focus between visible and invisible poverty is A Wider Circle. This organization is, at first glance, a furniture warehouse. Upon closer inspection, the goals of the organization are evident and impressive. A Wider Circle provides furniture, clothing, and anything else that a person might need to families who might be employed and might have an apartment, but who cannot afford a comfortable lifestyle beyond that. Each item that they receive is checked for dignity. Ripped, stained, and broken items will not be given to clients because that perpetuates the idea that quality is irrelevant when someone does not have better options.
The situation in D.C. is not unique; many Americans are struggling financially while still working full-time jobs. The solution to this issue is not to just increase the minimum wage, as that would not solve any long-term issues. Eventually, there would be another need for an increase, and that would continue on and on. One solution to the inequality among American workers might be to take a realistic look at how much money it would take to live a comfortable life in any specific area, and pay workers a fair wage depending on that number.
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