Lets see Poverty Line for family of 5 (my family) 27010 a year
Lets break that down to 2250.83 a month since most poor people do not have the luxury of an annual budget.
So now we have the target lets work on what that gets our family of 5
101.28 goes to SS taxes
800.00 goes to rent - now we have 5 people in 2 bedrooms so not much room but better than our grandparents one room houses
800.00 goes to food. It seems like a lot but remember this is 5 people for a month so we are only talking 1.78 per person per meal. This ain't gourmet.
150.00 for power yeah it shouldn't be that high but 800 bucks rent doesn't get you a high efficiency AC or good insulation.
100.00 for TV Phone Internet we are of course assuming you can get a bundle deal where you are. For those who say internet is not a necessity, well screw you in today's America just the money saved by not driving to pay your bills, pays for your internet. Also note TV is a luxury but phone bills 10 years ago were frequently more than the combined total for the 3 now In fact if you don't go with a triple play package you are probably paying more for just phone than a package pays for all three. Let the poor have their MTV.
120.00 for gas. This is a pretty low estimate it assumes a car with 25MPG (I don't know a single poor person with a car that new) and only 30 miles total driving a day.
50.00 for water just pulling this out my rear we spend closer to 100 but we have a teenage daughter and I love a long hot shower.
75.00 for gas, (this is an average based on my equal pay amount)
So for a grand total we get 2196.28 that leaves us with 54.55 a month for medical/dental/new shoes for the kids, new brakes for the car, vehicle tax on the car, clothes etc.
You say oh that's not so bad you got a roof over your head and food in your belly and heck even the luxury of tv and internet.
Of course those are the calculations from average. If you live somewhere slightly more than the average those numbers go out the window and you are screwed. Remember this average budget leaves you with 654.60 a year flex money so any one of the line items increasing minimally will well and truly screw you. Good luck with that sense of security.
Oh and you will note I used current SS tax of 4.5% not the 6.5%. That gave our budget the boost to have any extra money. Before that the extra was about 120 a year. I guess you are ok till the end of the month after that it goes back to 6.5 sorry folks.
I remember years ago I had started out in a min wage job. I had worked there for several years gotten the associated raises. Then I made key holder and got associated raises. I was making about a 1.50 more than when I started. I was pretty happy about that then along comes congress and they boost min wage by 1.15. Suddenly with my experience and responsibilities I was making 45 cents more than a new hire.
For all those proposing a boost in min wage remember it hurts the worker just above the threshold a lot more than anyone else. I mean why did I work hard stay at the same job gain skills and responsibility when I could have just done the minimum and the government would have given me almost the same raise for nothing.
Now years later and I am making 3x the minimum wage and someone comes along and says that education and skill will now only be worth 2x minimum wage? Once again why should I work hard and educate myself to get ahead if the government will just mandate the increases?