Is $17 an hour livable?

The concept of a livable wage has been a topic of discussion for many years, with the cost of living constantly on the rise and wages not always keeping up. In recent years, the minimum wage debate has been at the forefront of this discussion, with many arguing that the current minimum wage is not enough to support a person or a family. With this in mind, the question arises: is $17 an hour livable?

To answer this question, we must first understand what is meant by a livable wage. A livable wage is defined as the minimum income necessary for a worker to meet their basic needs, such as food, housing, healthcare, and transportation, without the need for government assistance. It is also commonly referred to as a living wage, as it is the amount needed for an individual or family to live comfortably and maintain a decent standard of living.

According to the MIT Living Wage Calculator, the living wage for a single adult in the United States is $16.54 per hour. This means that $17 an hour would technically be considered a livable wage for a single adult. However, this calculation does not take into account factors such as location, family size, and other personal circumstances, which can greatly impact the cost of living.

One of the main factors that can affect the livability of $17 an hour is the cost of housing. According to the National Low Income Housing Coalition, the average rent for a two-bedroom apartment in the United States is $1,196 per month. This means that in order to afford this rent, a person would need to earn at least $22.96 per hour, assuming a 40-hour workweek. This is significantly higher than $17 an hour, making it difficult for individuals earning this wage to afford decent housing.

Another factor to consider is healthcare costs. The average cost of healthcare in the United States is $4,968 per year for an individual and $12,682 per year for a family of four. This can be a significant expense for someone earning $17 an hour, especially if they do not have access to employer-provided health insurance.

Transportation is also a major expense for many individuals, especially those living in areas with limited public transportation. The average cost of owning and operating a vehicle in the United States is $9,282 per year. This includes expenses such as car payments, insurance, gas, and maintenance. For someone earning $17 an hour, this can be a significant portion of their income.

In addition to these basic expenses, there are also other costs to consider, such as food, utilities, and childcare. These expenses can vary greatly depending on location and personal circumstances, but they can add up quickly and make it difficult for someone earning $17 an hour to make ends meet.

Furthermore, $17 an hour may not be enough to save for emergencies or retirement. Many financial experts recommend saving at least 10-15% of your income for emergencies and retirement. For someone earning $17 an hour, this may not be feasible, leaving them vulnerable to financial instability in the future.

It is also important to note that $17 an hour may not be enough to support a family. According to the Economic Policy Institute, a family of four (two adults and two children) would need an income of $68,808 per year to cover their basic needs. This would require both parents to earn at least $17 an hour, assuming a 40-hour workweek. However, this does not take into account any unexpected expenses or the cost of childcare, which can be a significant expense for families.

In conclusion, while $17 an hour may technically be considered a livable wage for a single adult, it may not be enough to support a decent standard of living for an individual or a family. The cost of housing, healthcare, transportation, and other basic expenses can quickly add up and make it difficult for someone earning this wage to make ends meet. It is important for policymakers to consider these factors when determining minimum wage laws and for individuals to carefully budget and plan for their expenses.