A CNBC report has made some serious claims regarding the life style of minimum wage workers in the USA. According to the report, only 0.1 pc of the US minimum wage of workers can afford to get a two bedroom home. The figure is pretty small and the report’s claims are alarming. It means that only 0.1% pc workers which give their services on minimum wage can merely afford a two bedroom apartment.
According to the CNBC, the report has been prepared by National Low Income Housing Coalition, which is a lobbying group advocating for an increment in the minimum wage. Among these workers is a group of workers which is severely burdened as it has to spend its 50 pc of the earned income towards financing house related things.
The cost of housing has increased exponentially, even a single bedroom house is difficult to be afforded by many workers. The report notes that 76 pc of the renter households require 60 hours per week work or more by the minim-wage workgroup to afford a living in these single-bedroom households. The federal minimum wage is $7.25. Statistics obtained from the Bureau of Labor Statistics reveal that the minimum wage workers tend to be young and unmarried, therefore they find it reasonable to share the home of their parents.
Referring to the column writer, Tim Worstall, he had mentioned several times that the minimum-wage workers were never able to afford a reasonable housing. He has suggested that for houses to be cheaper, the government and other organisations should build more of it. Some renters can find cheap houses but there are reasons behind lesser monthly rents, one possible reason is that the facilities are meagre and the area of residency isn’t much safer.
According to the National Employment Law Project, around 42 pc of the US workers earn below $15 wage per house. However, contrary to these earnings, an average renter in US makes twice as much as $16.38 per hour, therefore, it becomes a little hard for the workers to afford such places with ease.