Barely making it- Minimum wage still isn't enough for single people in Michigan

Government sanctioned discrimination

(recordeagle.com) LANSING — Michigan minimum wage earners are not making enough to afford their most basic needs like housing, food, clothing or transportation, statistics show.

The Michigan League for Public Policy argues that the minimum wage of $8.15 is not enough to live on. In Lake County, for instance, a single adult, full-time worker would need to make $10 an hour to meet basic needs, according to a 2014 study by the league. In Grand Traverse County, the amount goes up to $11 an hour. In Manistee County, one can get by on $9.94 per hour.

Not a single county lists $8.15 per hour or less as meeting the basic needs wage.

Take rental housing. Megan Bolton, research director for the National Low Income Housing Coalition, said home ownership rates declined and are still declining after the foreclosure crisis. This has resulted in a huge surge in the number of renters.

Affordable housing is considered in terms of its fair-market rent, based on the cost of the 40th least expensive rental rate in an area. Minimum wage does not allow single people to afford fair-market properties, said Peter Ruark, senior policy analyst for the Michigan League for Public Policy. Some properties might be available below those prices, but the housing is often undesirable with the cheapest housing being substandard or potentially unsafe, Ruark said.

Eric Guthrie, Michigan’s state demographer for the Bureau of Labor Market Information & Strategic Initiatives, agreed.

“There technically are places that are available,” he said. “That doesn’t mean that they are desirable or they would work for every person.”

Sarah Lucas, the regional planning department manager for Networks Northwest, formerly Northwest Michigan Council of Governments, said in Traverse City it is almost impossible to find affordable housing while making minimum wage. Rental housing that is affordable brings issues with safety and quality, including old septic systems, bad roofs, and poor insulation. This housing is also located out in the county, which brings increased transportation costs.



The historically accepted standard of affordability for housing, and the standard generally used by rental assistance programs, is 30 percent of an individual’s income. In Grand Traverse County, the fair market rent is $167 more per month than those on minimum wage can reasonably afford. Full Story