Re: wages/Federal Poverty

[JJSwanberg@aol.com]

In a message dated 1/12/2000 1:49:01 PM Pacific Standard Time, 
jbiggs50@hotmail.com writes:

>>So, it seems to me that any discussion of poverty and wages should not use 
the federal threshold as a guideline because it obviously doesn't reflect 
current reality.  Take it from someone living paycheck-to-paycheck, you 
don't have to live in a tar paper shack and eat grits every meal to be poor.
jm<<

I agree completely with you!  I do not have the citation immediately 
available, but I do recall hearing that most Americans are but a paycheck or 
two away from bankruptcy (and it isn't all due to consumer debt as some might 
suggest).  I do find it interesting that although Federal Poverty Guideline 
was based (as you point out) on an emergency and steeply cut back budget 
originally, and was expected to indicate a conservative estimate of  poverty; 
it remains within the ballpark of the Federal Minimum Wage.  I think the 
message is loud and clear, that for those employees dependent upon a Federal 
Minimum Wage it would be unreasonable for them to consider their employment 
as more than temporary and emergency, minimal employment (unless the income 
is supplement in other ways to bring income up to a more livable wage.)

Okay, so now that we have this information, where do we go from here.  Come 
on visionaries...what about more partnerships between the minimum wage entry 
level positions and employers who can pay higher wages?  What training and 
skills building can the entry level employers offer in a cost-effective 
manner?  How can employers provide more continuity between jobs for those 
moving up the career field.  How do the entry level employers assist in these 
advancements?  How do the higher paying employers assist the entry level 
employers in providing this training/continuity in order to maintain a more 
stable and community invested work force?

What non-financial benefits can employers offer to members of the community 
eschewing higher wages in other areas for the benefits of "Palouse Living"?

Cheers,
Jennifer

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From: JJSwanberg@aol.com
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Date: Wed, 12 Jan 2000 16:10:34 EST
Subject: Re: wages/Federal Poverty
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I find this discussion regarding work ethics and wages very interesting.   
Peggy raised some good issues around highly committed volunteers and the way 
they are treated.  A few others on this list have also raised important 
issues about entitlement, commitment, work ethic and livable wages, quality 
of life, and regional wage issues.  Obviously, humans have both 
life-sustaining needs of food and shelter, as well as other needs such as 
social, spiritual, intellectual, etc.  Work is an integral part of meeting 
needs in both these broad areas.

I would like to propose two challenges for the list: 

1)  Let's brainstorm some ways our community can interact with workers in 
such a way that a) worker and employer needs are met b) that both employer 
and employee can maintain and build futures in the Moscow community. 

2)  Let's look at minimum wage versus cost of living in the area and see if 
there are ways (financially or non-financially) that we can support a good 
quality of life for all full time workers (whether they be as employer or 
employee) throughout the career life-span. 

What are the different needs of different populations in our community?  

I've included a few notes about financial  needs and Federal Poverty 
Guidelines below:

If we look at meeting basic life-sustaining needs, it may help to look at 
Federal Poverty Thresholds compared with the Federal Minimum Wage.  Federal 
Poverty Thresholds were originally based upon an economic nutritional plan 
developed by the Department of Agriculture (and were the least expensive of 
the four nutritional plans they developed). Roughly 1/3 of a families income 
it was determined went towards food. Annual updates of these Social Security 
Administration poverty thresholds were based on price changes of the items in 
the economy food plan since that time.

1999 Poverty Guidelines for a family of one are: $8,240/year.  $11,060/year 
for a family of two, $13,880 for a family of three, $16,700 for a family of 
four and so on.

Calculating for a single person earning the Federal Minimum Wage of 
$5.15/hour, a single person on a monthly wage would earn $865.20/month gross 
or $10,382.40/year. (Based on a 21 average work day month, and subtracting 
$34/month State Taxes, $ 61/month Federal Income Taxes, $66.19/month Social 
Security, this leaves a NET INCOME OF $8448.12/year).

I have not considered costs of unemployment insurance, medical insurance 
deductions (if any), retirement deductions (if any) nor any other non-wage 
employee benefits or deductions.  I have not considered any possible tax 
refunds.

Cheers,
Jennifer Swanberg



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Date: Wed, 12 Jan 2000 15:39:03 -0800
To: <vision2020@moscow.com>
From: Bob Hoffmann <escape@alt-escape.com>
Subject: Re: wages/Federal Poverty
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At 02:47 PM 01/12/2000 -0800, Lois Melina wrote:
>Perhaps graduate
>students in business could serve as consultants, learning from the hands-on
>experience while business owners get information is available that could
>help them.
>Perhaps this is already happening, but as someone who has been self-employed
>with a self-employed spouse for the past 20 years, if there are such
>programs, they need to be more broadly advertised. Sometimes I think about
>calling the universities, but I don't really know what professors have
>students who need projects or whether what I am asking for is an imposition.

Lois,
I have heard that such resources are available from University 
students.  Perhaps one of the greatest problems small businesses have is 
summoning the courage to ASK for help.  Large businesses don't mind asking 
for tax abatements, new sewers & streets, etc.  Why should small businesses 
be shy about calling the University and saying, "Hey, Mr./Mrs. Business 
Professor, do you have a student who can earn credit by developing a 
business plan for me?"  Chances are, the professor will say yes, or will 
direct you to the right place.  Small business owners, remember that if you 
ask a business student for help, you are actually OFFERING 
EXPERIENCE!  Students want those interesting lines on the resume, something 
that helps them stand out.

Book People of Moscow, when relocating, moved the majority of its inventory 
with volunteer help.  How did it get the volunteers?  By asking!


Bob Hoffmann
229 East C St., Suite B
Moscow, ID  83843  USA
Phone: (208) 883-0642
Fax: 1-800-683-3799
http://www.alt-escape.com