Wednesday, June 10, 2015

New study addresses income inequality.

June 10, 2015
By Ana Swanson

...High hourly wages (click here) are necessary to afford decent housing in Washington, D.C. ($28.04), California ($26.65), New York ($25.67), New Jersey ($25.17), Massachusetts ($24.64), and other states.
In Missouri, where average rents are significantly lower, you'd still need to earn $14.62 an hour, well above the state's minimum wage of $7.65. 

This data comes from the National Low Income Housing Coalition, an advocacy group for affordable housing, which has published an extensive report comparing the cost of renting with wages in each state.

The group defines housing affordability as paying less than 30 percent of your income to housing, a common standard for the industry, and it assumes a "fair market rent" as defined by the Department of Housing and Urban Development....

PDF of report (click here)

From the report:

There is not one state in the U.S. where a minimum wage worker working full time can afford a one-bedroom apartment at the fair market rent. In 13 states and DC the fair housing wage is over $20.00.

There needs to be a follow up study to better define where exactly the working poor finds shelter. The above graph is from a different study. It is appropriate to place it here.

How does any country expect 20% of it's population to move out of impoverishment? Twenty percent of Americans earn less than three percent of the GDP. That is a lot of people. It is nearly impossible in the USA to raise those people out of hopelessness. To ask twenty percent of Americans to do better is not realistic. This is the USA. The place where immigrants come to find a better life.

The criticism of the poor is no longer political capital. There have to be answers.