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- cross-posted to:
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In 2025, the federal minimum wage is officially a “poverty wage.” The annual earnings of a single adult working full-time, year-round at $7.25 an hour now fall below the poverty threshold of $15,650 (established by the Department of Health and Human Services guidelines). The limitations of how the federal government calculates poverty understate how far the minimum wage is from economic security for workers and their families.
You’re right about how many states have minimum wage either explicitly set to 7.25 or lower, or tracking the federal minimum wage (including Georgia, with a state minimum wage of 5.50). I assumed there were fewer of those states, because the number of workers that are being paid the minimum wage (or lower) is 1.1% and dropping.
I guess the question I was trying to allude to is: with fewer and fewer people being paid the minimum wage, and with such enormous disparity between cost of living within a state let alone between states, does it really matter that the federal minimum wage is below the poverty line? There are places in the US where you can live decently on 7.25/hr, and there are places where you would feel squeezed even at 40/hr. National metrics like this one are interesting but not really representative
There’s not a single place in the US where you can “live decently” on 7.25/ hr.