Trouble in California
The golden state's minimum wage law fails to outpace living costs.
Greetings Prosperous Souls,
California’s attempts to support low income earners don’t seem to be helping much. Take the state’s minimum wage law, for example, which offers slight economic relief, but ultimately falls short.
You can see this via the latest insights into California’s minimum wage:
“The statewide minimum wage, at $16 an hour, is significantly higher than a ‘poverty wage,’” the report states. However, the exorbitant housing costs in the state make it exceedingly challenging for many low-wage workers to cope.
The report continues:
“California’s major metropolitan areas and the Central Coast are unaffordable for minimum wage workers, regardless of their household composition or whether they have children.”
But here’s the most concerning part of the article:
“For low-wage workers with a more ‘favorable’ income-to-expense ratio, such as a double-income household with no children, housing in California's rural counties and mid-sized metro areas is affordable. Even for households with one or two children, living in California’s rural counties could be feasible if both earners make minimum wage.”
According to this report, living in California is feasible, but only if you live in a rural county and have 1 or 2 children… or none. If you want to have more kids, you’d better be making some serious cash.
It seems that the American dream is out of reach for many Californians.
God bless your Prosperous Soul,
Stephen K. De Silva
About: Stephen K. De Silva is an author, speaker, and financial mentor. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com