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The obvious response to this is that the minimum wage is simply not supposed to be a sole source of income for a person living on their own. The bigger problem
by lucaspm98 7y ago
The obvious response to this is that the minimum wage is simply not supposed to be a sole source of income for a person living on their own.
The bigger problem with this particular article is qualifying affordable as less than 30 percent of income. That is a great rule in most situations. However, if you are on a limited income the percentage housing will be expected to be higher. It is one of the least elastic expenses, while things like a car or entertainment can be cut back or substituted for alternatives like public transportation. I don't know what the percentage should be, but 30% is unrealistic.
If you think about it, the opposite will also be true in many situations. If my income doubled from 100k to 200k overnight, I would consider upgrading apartments but from 1k a month to 1.3k a month. My food and entertainment costs would scale much quicker as a percentage of income.