Can’t Sleep In The Beds They Make, May Not Be Able To Sleep In Their Own Either

The median hourly wage of a housekeeper or maid in Nevada’s “traveler accommodation” sector is $15.71.  [DETR] We know what medians are — half the wage earners are above this level, the other half below.  So, if our median wage earning housekeeper works 40 hours per week, for 50 weeks per year the gross earnings would be $31,420.  The actual median annual income is reported as $32,680. [DETR] Again, we know that half are earning below this amount.  Let’s compare these numbers to the living wage required in the community most likely to employ housekeepers — Las Vegas.

A single person with no dependents would need to earn $20,036 to make the living wage level in Las Vegas.  A person supporting one child would need annual earnings of $43,001. [MITedu] The median annual earnings of a housekeeper in Las Vegas obviously don’t reach this level.  Why are we looking at these numbers?

Because — the Economic Policy Institute released a report yesterday demonstrating that people working in the accommodations sector can’t afford to sleep in the beds they’re making.  At one point, back in the 1960’s and 1970’s a housekeeper could afford a room, but the current wage stagnation in the sector now means that the housekeeper can only afford 78% of the average room cost ($106/day).   Once more, why does this matter?

It’s not like the Department of Labor hasn’t been trying to tell us, ” A review of 64 studies on minimum wage increases found no discernible effect on employment,” but the myth remains that raising minimum wages cuts jobs is still recited like a mantra among business interests in spite of every solid study to the contrary — and there’s another study rejecting the mythology this morning.

“In April, the Paychex/IHS survey, which looks at employment in small businesses, found that the state with the highest percentage of annual job growth was Washington — the state with the highest minimum wage in the nation, $9.32 an hour. The metropolitan area with the highest percentage of annual job growth was San Francisco — the city with the highest minimum wage in the nation, at $10.74.” [WaPo]

Harold Meyerson’s analysis repeats what advocates of increasing minimum wages have been saying all along:

“What critics of a higher minimum wage ignore is that, by putting more money into the pockets of the working poor — a group that necessarily spends nearly all its income on such locally provided basics as rent, food, transport and child care — an adequate minimum wage increases a community’s level of sales and thereby creates more jobs.” [WaPo]

But, but, but… sputter the opponents of any increase in the minimum wage, Singapore has no minimum wage and look how well those people are doing.  Easy now. That evidence comes with some significant caveats.  First, their budget provides public funds to subsidize private company worker’s pay, and secondly the Singapore government is the largest shareholder in Singaporean companies, to the tune of some 54% ownership. [AXW]  I’m not at all assured that U.S. companies would be eager to adopt a system in which in exchange for wage subsidies the company would agree to make the government a major shareholder.

Another reason for looking at minimum wage and living wage issues is the recent action by the House Appropriations Committee which would slash HUD funding for housing assistance.

“The House Appropriations Committee this week approved a fiscal year 2015 funding bill covering the Department of Housing and Urban Development (HUD) that makes disproportionately deep cuts in housing assistance for low-income families.” [CBPP]

Here’s a graphic representation of what this would mean for low income families.

Housing cutsNot to put too fine a point to it, but the House appears determined to cut programs for low income families while they are singularly unresponsive to any and all calls for closing tax loopholes and gimmicks for the upper 0.01% or eliminating subsidies for the Oil and Gas Giants.

Meanwhile, the housekeepers cleaning up after the Memorial Day weekend revelers in Nevada, continue to try to make financial ends meet, as the House of Representatives pursues more ways to make life even more difficult for struggling American families.  If this pursuit continues our housekeepers may not only be unable to rent a motel room — they may not be able to sleep in their own beds.

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