A majority of Americans make less than $20 per hour

[UglyGreed]

WASHINGTON (MarketWatch) — Where do you fit on the earnings scale?

According to data compiled by Goldman Sachs, most American workers earn below $20 per hour. Goldman Sachs economists David Mericle and Chris Mischaikow crunched Labor Department data that is used to generate the monthly jobs report that the market closely watches, in particular from the survey of employers.

The chart, shown above, shows that 19% of workers make less than $12.50 per hour, 32% of workers make between $12.50 and $20 per hour, 30% make between $20 and $30 an hour, 14% make between $30 and $45 per hour, and 5% make over $45 an hour.


http://finance.yahoo.com/news/majority-americans-less-20-per-193329260.html

[GreatGazoo]

1. there are only 120 million full time jobs in the US

so a huge majority of Americans, 190 mil out of 310, make little or nothing at all.

[UglyGreed]

2. So true

mean while the cost of living goes up.

[GreatGazoo]

3. I note also that they use dollars per hour rather than total take home pay

They have framed the discussion in a context free of:

- benefits
- total hours worked (think salary divided by the total hours actually worked, 50+ in many cases)
- the self-employed such as farmers who can often wind up make less than minimum wage

At times this life seems stacked against us. Born with time and no money (or not enough). It suits the PTB just fine:

"...a slave to money then we die..."

[UglyGreed]

13. Great post

some work so much they have no time to complain, protest or even vote. So much for the American Dream....

[grahamhgreen]

4. Can someone extrapolate what houses should cost based on these earnings?

[stevenleser]

7. Well, assuming 40 hours a week, a $20/hr wage would be $800 per week before taxes...

So figure, after taxes and benefits, the person would take home $550 per week or approximately four times that per month.

Ideally, housing costs should not exceed 25% of monthly take home pay, so $550 per month should be the average mortgage payment (PITI) or rent.

I am guessing that reality is that the average mortgage or rent is more like double or triple that amount.

[grahamhgreen]

8. So, people could afford a $100K home...? Or less than 1/2 of the median home price of $259,000.

[stevenleser]

10. Yep, I edited the error in my post. You are correct.

And I will further guess, without looking, that if the wage trajectory from the 1940s-early 1960s had continued until now, that the wages would be more than enough to handle the mortgage for that $259,000 home.

[grahamhgreen]

12. I'm thinking that lack of proper wages may force housing prices down again, you?

[stevenleser]

16. So far, all kinds of other 'accommodations' have happened. For instance...

The whole undocumented immigrant issue, in my opinion, was allowed to happen to lower food prices and various other prices so that the middle and lower class could get by with lower wages (and of course the 1% could keep more of the profits).

There is a whole list of other things too.

[moondust]

5. Did they count

migrant field workers who are paid by the wagon load? Or those doing other kinds of piecework?

Or temp workers who may or may not find work every day?

Or people who work on commission?

Or prison labor?


Adding up totals and taking averages probably doesn't paint a very accurate picture if that's what they're doing.

[UglyGreed]

14. Shhh

We mustn't speak of such things, let that lay in the shadows.....

[KamaAina]

6. Count me among them

although not by much.

And next year marks my 30th reunion at Yale.

[UglyGreed]

9. That is unbelievable

SMH!!!

[KamaAina]

11. Tell me about it

of course, I have a disability, so it's OK.

[UglyGreed]

15. Yeah

they like to take advantage don't they

[eppur_se_muova]

17. 40 hr a week, 50 weeks a year would be 2000 hrs ....

so if you make less than $40k/yr full-time, that's less than $20/hr.