Minimum Wage Assignment

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PAF 504 Assignment – Minimum Wage a. Suppose you live by yourself and earn the minimum wage working full time $16,744. What would you have to cut in order to make ends meet? Assuming the minimum wage of $16,744 that I made working full time is before taxes, I would have to cut $4,898 ($21,642 – $16,744) dollars to make my ends meet. This amount can come from reducing my food expenses, medical expenses, and other expenses. b. Suppose you are a single adult with a child earning the minimum wage. How many hours a week would you have to work to make ends meet assuming you work all 52 weeks of the year? For a single adult with a child, the required annual income is $47,283. With a minimum wage of $8.05, I would have to work 8,573.66 ($47,283/$8.05)…show more content…
A family with a single breadwinner and 3 children require an annual income of $78,480 to be able to support the lifestyle. The only occupation that could support the lifestyle is in the management area. d. Suppose one adult in a family with 3 children has a job in Construction & Extraction while another currently is unemployed and is making the decision about whether to go back to work in Food Preparation & Serving Related versus provide child care. What are the relative costs and benefits of this decision? If the other spouse decides to go back to work in food preparation & serving related occupation, the family’s total income would be $57,850 ($38,580+ $19,270). Compare this amount ($57,850) with the annual expenses required income for 2 working adults with 3 children, which is $81,107. The family would be $23,257 ($81,107 – $57,850) short to make ends meet. This is due to the fact that with two working spouses, they would be making more money, however, they will also need to start providing childcare expense. After calculation, they are $23,257 short on living wage. There is also an opportunity cost that if both parents are working, they give up the time that they could have to spend with their…show more content…
First, I would like to provide training program for individuals who are considered as low-skilled workers. By providing training programs, individuals can learn new skills in order for them be qualified for a higher paid position that requires different skills. Second, I would reduce tax deduction from each paycheck for minimum wage earners so that they are receiving more income in each paycheck. Third, I would make a policy to increase the earned income tax credits which will directly help families who are earning minimum
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