this post was submitted on 29 Apr 2025
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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.

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[–] njm1314@lemmy.world 13 points 1 hour ago (1 children)

I'm kind of more shocked at $16,000 a year is considered above poverty.

[–] booly@sh.itjust.works 8 points 1 hour ago

The poverty line was historically measured simply by multiplying the USDA's cheapest food plan for a household to buy groceries with adequate nutrition, and multiplying by 3.

Then, in the intervening 6 decades or so, food inflation has gone up significantly slower than housing inflation, to where that simple assumption of "barely enough to eat, times 3" began systematically understating actual poverty.

Today, feeding the reference family of 4 (2 adults 20-50, 1 kid aged 6-8, 1 aged 9-11) costs $996.20 per month (as of March 2025). That's basically $12,000 per year, so the poverty line for a family of 4 is $32,150 (updated every January with September data).

[–] arin@lemmy.world 7 points 2 hours ago (1 children)

Ain't seen nothing yet, price adjustments after tariffs gonna make middle class in great depression queues.

But eggs'll be cheap, right?

[–] Zier@fedia.io 5 points 2 hours ago

President Felon will change the poverty threshold to $0.15 to prove everyone is doing excellent.

[–] bdjukeemgood@lemm.ee 27 points 4 hours ago (2 children)

$15k a year??? That wouldn’t even cover my food let alone a shitty hotel room. Anything below $50k as a single earner is deep in poverty.

[–] manxu@piefed.social 3 points 1 hour ago

Yes, it sounds bad. But there is a bright side, too! The week has 168 hours, which means if you work four full time jobs, you can make $60k a year and you still get eight hours of sleep! /s

IIRC, the federal poverty level doesn’t account for housing, transport, utilities, etc… It basically only accounts for food. And even then, it only accounts for the cheapest of the cheap food; You’d basically be eating white rice and instant ramen every day.

[–] obscureprodigy@pawb.social 56 points 5 hours ago* (last edited 5 hours ago)

$7.25 has been poverty wages for over a decade.

[–] MichaelScotch@lemmy.world 49 points 5 hours ago (1 children)

That’s been a poverty wage for at least 15 years.

Yeah, the “$15 minimum wage” conversation has been going on for so long that the actual number adjusted for inflation would be well into the mid $20 range. IIRC, it would currently land somewhere around $24.75 per hour.

And if the idea of a $24.75 minimum wage makes you balk, maybe you should consider how little you’re being paid for the work you do, when compared to what the minimum wage used to cover. It used to cover enough for a single full time worker to afford housing, utilities, food, and a car. If you’re struggling to do that and you’re making in the mid $20’s, then congrats you know how it felt to be paid minimum wage when it was introduced.

[–] veroxii@aussie.zone 5 points 3 hours ago

CEOs read "minimum wage" and they think "maximum wage".

It's just a branding issue. /s

[–] themeatbridge@lemmy.world 23 points 5 hours ago (1 children)

For an individual supporting themselves. For anyone with a family, it's been a poverty wage for a very long time. Spoiler, more than a third of minimum wage earners have children to support.

Um? I'm making more than twice that and I can just barely afford rent, food, etc. I'd hesitate to call anything below $15/hr even remotely livable, and that's out in the sticks.

[–] tanisnikana@lemmy.world 11 points 4 hours ago (1 children)

The solution is obviously to abolish HHS.

[–] Auntievenim@lemmy.world 10 points 4 hours ago

The criteria must be wrong because by these metrics half of Americans are below poverty!

[–] Maeve@kbin.earth 0 points 4 hours ago