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.
I’m kind of more shocked at $16,000 a year is considered above poverty.
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).
So cost of rent/mortgage is excluded.
Then the state provides a shelter, right?
$7.25 has been poverty wages for over a decade.
Ain’t seen nothing yet, price adjustments after tariffs gonna make middle class in great depression queues.
But eggs’ll be cheap, right?
$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.
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
those are some top-tier grustle tips
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.
Builds strong deficiencies
Dont forget to thank Mr. MSG
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.
President Felon will change the poverty threshold to $0.15 to prove everyone is doing excellent.
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.
CEOs read “minimum wage” and they think “maximum wage”.
It’s just a branding issue. /s
The solution is obviously to abolish HHS.
The criteria must be wrong because by these metrics half of Americans are below poverty!
With most states having their own minimum wages higher than the federal one, how relevant is this really?
I would like to introduce you to the two million people living in Idaho. Federal minimum wage and the state prevents counties or cities from setting a minimum wage different from the state’s.
Boy, fuck Idaho apparently
Yeah it’s bleak there for a lot of reasons. Fun fact Idaho potatoes involve a lot of prison labor
Extremely
- A state can just repeal their own minimum wage
- The existence of states using the federal minimum wage means it matters to the people who live in those states
- Poverty anywhere indicates the possibility of poverty everywhere. Being somewhere “without poverty” does not make you safe from poverty. It just means you are less proximate to poverty for now
Thank you for the response from the Democratic Party.
Fuck workers in red states. They deserve it for being outnumbered.
A lot of those states with higher minimum wage also have a higher cost of living, though, so it’s not all cut and dry.
