The Freedom Dividend is easily better for me than a $15 minimum wage
I just started a job that I am really excited about. I love the work I do and I just love working. I was unemployed for a few months after graduating and I just couldn't stand having nothing to do.
I make about $10.50 an hour, but it isn't all bad because the educational opportunities offered as benefits. I also have career advancement opportunities with the job including several pay raises within my grade.
I have been somewhat obsessively going over pay breakdowns, taxes, deductions, health insurance, etc. and considered more deeply what exactly a $15 min wage or $1000 a month would look like for me. Here are the numbers.
| Current Wage | ~$22,000/year of taxable income | $1146/month after deductions+tax |
|---|---|---|
| $15 Minimum Wage | ~$31,000/year of taxable income | $1578/month after deductions+tax |
| Freedom Dividend | ~$34,000/year (only $22,000 taxable) | $2146/month after deductions+tax |
On a $15 minimum wage my life does improve, there is no doubt about that. It is easier to afford a car payment, find an apartment with a roommate to share in expenses, and afford other necessities of life. The extra ~$400 makes a huge difference.
But it is nothing compared to that extra non-taxed $1000. I could afford to live alone. I could afford to take more time off for classes and get my MBA faster. I could save more money, or spend it towards healthier living while I'm still in school.
It is difficult to calculate exactly how much a 10% VAT would actually impact my income, but I seriously doubt it would come close to what the Freedom Dividend would provide me.
Posted Aug 7, 2019, 4:43 AM UTC
My view on higher minimum wage is this. I make 14.50 a hour working in a internet tech company. I went through a long training process to get this job. I believe it is harder than other jobs. So I believe I should be paid more than minimum wage I have earned it. So if you raise the minimum wage will my wage go up the appropriate amount? Another thing is being business savvy every company can not afford to pay all there employees this much. So they will look it cut cost which leads to automation.
It should go up but I will not be surprised if it wont.
Personally I do not like the “I have more training, I should be making more than a burger flipper” argument.
A person working full time should be earning enough to eat.
With that said, don’t blame poor people seeking 15 an hour if your wage doesn’t go up. Blame your company for not giving you the appropriate raises that you you are entitled to for being in your position.
Market wages are market wages though. You can't really force the market to do anything without unintended consequences. Wages rise when companies can't get enough people for the position for the price they are willing to pay.
But then a ton of people will starve!
And that's where UBI comes in.
You’re dead right on the “every company can not afford [it]”. I’m not worried about huge companies like Target, Amazon, Wal Mart, or even large fast food chains not being able to afford it. I think about my local diners, bars, sandwich shops, etc. There’s absolutely no way they’d stay in business having to pay their employees nearly double an hour, as many of them struggle enough financially as is.