My brother, David, sent me this thought provoking analysis. As we watch the Middle East in turmoil, this is one very daily and personal consequence. Writes David:
With some experts talking about the possibility of $5 or $6 per gallon gasoline prices becoming the new norm in America, I thought it might be interesting to throw some numbers out and see how much of your working life might be spent just to pay for having a car.
| Yearly Costs: | |
|---|---|
| $3,200 | Gasoline Costs (20-mile commute one way @15 MPG city driving x $5/Gallon x 20 days/mo.) |
| $2,100 | Car Insurance ($175/month) |
| $1,750 | Car depreciation |
| $1,800 | Repairs, Registration, State Inspection, Maintenance, Parking fees, etc. ($150/mo) |
| $1,800 | Car payments ($150/mo) |
| $10,650 | Total yearly cost of owning a car |
*The mileage above was for commuter miles of about 800/month. In reality, many folks could easily double that mileage to 1,600 miles per month if you add in all your personal trips (shopping, soccer practices, etc.).
Conclusion … a minimum wage worker could work the entire year just to pay for the cost of owning a car.
A $5.15 minimum wage would compute to $4.75/hour after 7.65% FICA/Medicare deduction.
Even assuming no federal income tax withholding and no medical insurance withholding, that $4.75/hour x 160 hours/month x 12 months would come out to $9,120 after FICA/Medicare deductions.
And of course that doesn’t account for food, rent, clothing, utilities, phone, medical insurance, school supplies, and everything else that families need to survive.
The growth of cheap mass transit options and super fuel efficient vehicles would certainly help, but like ever increasing medical costs and housing costs and utility costs, it seems almost every major trend in America is working against the average minimum wage worker. Where’s the light at the end of the tunnel?
David raises compelling points. Though minimum wage may not be adjusted any time soon, as employers we may need to consider the economic impact on these workers. I understand that if you are a small business owner that even you are struggling. But we all need to try to move beyond what we are just legally obligated to do toward what we must do because it is right and good to do. Whereas there may be no easy answers, the Scriptures tell us that we are to be characterized by faith, hope, and love. And the solutions to this and all the complex challenges of our lives can emerge as we ask ourselves, "How should people of true faith respond to this? How should people of real hope respond to this? How should love respond to this?"
Share with us your thoughts and ideas.
Comment: (One)
Genesis 12
Notice American lifestyles waxing and waning according to parameters laid out in Genesis 12:3. In the beginning of modern Israel, for instance, its greatest ally was the milieu of the American left, especially the post-war labor movement; in a moment flush with the victory of an army mustering to fight armies murdering the diaspora.
Now, America brokers specious peace deals, beguiling Israel of a critical victory; while minimum wage-slaves struggle over mere personal transportation: an item more righteous American generations took for granted. Again, at mid-century, a largely working class army blessed the Jews and was answered with unprecedented post-war blessing. Will not today’s cursing be answered with even more cursing?
Can one imagine another White House Texan, the Christadelphian and Israelophile, Lyndon Johnson, handing Israel’s enemies as decisive victory in 1967? As well, can we imagine LBJ repressing wages in his Great Society?
We need another Operation Texas:
http://www.testimony-magazine.org/back/feb2004/elliott.pdf
http://www.texancultures.utsa.edu/hiddenhistory/Pages8/SmallwoodLBJ.htm
From Stratfor:
Geopolitical Diary: Revisiting Core Assumptions
August 14, 2006 07 00 GMT
A single assumption has shaped Arab-Israeli relations since 1948: that Israel could decide, if it wished, to resort to war and impose its will on Arab armies. That assumption shaped all political considerations in the region. If Israel is no longer capable of doing that, it follows that a range of political assumptions also are untrue. Consider Jordan: Since 1970, Israel has been the guarantor of Jordanian national security. Consider Egypt: Since Camp David, Egypt has refused to engage Israel militarily. Both of these political certainties have been based on a military certainty — and if that dissolves, so does everything else.