The study, commissioned by the nonprofit group Wider Opportunities for Women, looks at how much income it takes to support a basic standard of living for an American family--and finds that many of the jobs of the future won't pay enough to provide that.
To calculate this "economic security" income, the study's authors certainly didn't assume a lavish lifestyle. They considered basic needs--housing, food, utilities, health care, child-care, and transportation--plus the cost of modest saving for retirement and a small surplus for emergencies. (At at a time when economic "shocks" are increasingly common, that's an essential part of financial security.) They don't factor in some things many of us take for granted, like entertainment or eating out.
The result? To achieve economic security, a single parent with two children needs an income of just over $30,000 a year--nearly twice the federal minimum wage--while a two-income household needs almost $68,000.Where is this going? Part of it is going to CEO raises, like I've already pointed out. The rest is paying to start our economy again. Businesses had to raise costs to stay open, while the economy forced people to spend as little as possible. Something has to give, and it's us. This isn't necessarily bad, as consumers drive the market. However, it does mean that we will be paying more than we should for a while to come, and that means we may have to work more than before.
This is what happens when greed overrides the common good. We were able to keep an unsustainable lifestyle as a country. Our cleverness and power let us keep it going longer, which only made for a bigger fall when it caught up to us. These lean times aren't fun, but keep in mind that it's going to teach financial responsibility and give a reality check to several people who need it.
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