2. What is a “living wage”? Discuss the difference between the minimum wage and the living wage. Can they be the same?

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2. What is a “living wage”? Discuss the difference between the minimum wage and the living wage. Can they be the same?

EXPERT ANSWER

The living wage is the amount of money necessary to maintain a reasonable standard of living. It should be sufficient to cover the costs of living in any place. It should be changed to account for inflation as well. A living wage is intended to ensure that all full-time employees have enough resources to live above the federal poverty line.

The difference between the minimum wage and the living wage is that the minimum wage is set by statute, while the living wage is dictated by average living costs. What is included in the equation determines the sum required to provide a living wage. Legislators must consider the interests of both employers and employees when determining the minimum wage. They must also understand the economy’s overall effect.

The minimum wage was established to provide workers with enough money to keep them out of poverty. The minimum wage principle has failed because it has not kept up with increasing costs of living, leading many workers to fall into poverty.

The difference between the minimum wage and the living wage is that the minimum wage is set by statute, while the living wage is dictated by average living costs. What is included in the equation determines the sum required to provide a living wage. Legislators must consider the interests of both employers and employees when determining the minimum wage. They must also understand the economy’s overall effect.

The minimum wage was established to provide workers with enough money to keep them out of poverty. The minimum wage principle has failed because it has not kept up with increasing costs of living, leading many workers to fall into poverty.