What is a good salary?

From: PWW

Real wages have dropped in the U.S. since 1975. The proof lies in the correlation between the minimum wage and the price of the average home in the United States. The price of housing usually takes up a good portion of the average workers earning during her or his lifetime. The minimum wage is the minimum salary paid to a working person in the U.S. In 1975, the minimum wage was $2.00 an hour. The average price of a home in that same year was $42,600. If a person worked a 40-hour work week at the minimum wage then he or she earned $4,160 a year or approximately 10 percent of the average cost of a home in 1975. A person in 2008 earning minimum wage earns $6.55 an hour or approximately $13,624 per year. The average price of a home now is $313,600. The minimum salary is approximately 4.3 percent of the price of the average home in the United States. This is a sharp drop from the 10 percent in 1975. If the minimum wage would have remained 10 percent of the average home price it would be $31,360, which is $13,029 less than the U.S. median salary of $44,389 in 2005.

We are earning less and less money as the cost of housing and other commodities necessary for our daily lining continues to rise. As gas prices continue to soar towards $4.00 a gallon and beyond one wonders if there is any hope in sight for the average U.S. working person.



Irving Jones

Philadelphia PA