May 2014

TAKING LESS

This is a meaningless concept to the homeless who have nothing and struggle each day to survive. For others the idea of going without anything is absurd if more than sixty-five percent of their income is required to cover the cost of housing and utilities each month. If either of these situations fits your personal circumstances, the idea of “taking less” is a matter of no concern.

If such housing and utilities costs seem unlikely, consider this:

In San Francisco a one bedroom apartment goes for $2,400 per month. That equals sixty-five percent of a monthly income of $3,692 which provides an annual income of about $44,307. By comparison the minimum wage of $10.55 an hour in San Francisco for a forty hour work week gives an annual income of $21,944.

In California without calling forth gales of hilarious laughter the discussion of “taking less” is only possible among the following:

  • single person households having annual incomes of more than $58,000;
  • two person households having annual incomes of more than $100,000; and,
  • multi-person households having incomes of more than $150,000 per year.

The California median household income was $58,328 in 2012. Since there are more than twelve million households in California there may be as many as six million households in which the idea of “taking less” is a realistic consideration.

Why should they?

For the six million California households that receive less - (often very much less) - than $58,328 annually, what does the opposite action of “taking more” mean?

With none or only a little increase in the total national economic output each year for the upper half to “take more” means that the lower half must “take less.”

So who lives in the California households where annual income falls below the annual median of $58,328?

Here is a likely list:

  • Single individuals earning $25 - $28 an hour at a full-time job or working at two lower paid jobs for more than forty hours a week.
  • Couples who each work full-time and earn $12 - $14 an hour.
  • Single individuals with lower incomes who live with others to afford housing.
  • Single individuals with children earning as much as they possibly can by whatever means necessary.
  • Couples with children who do the same.
  • Those who are retired, disabled, or unemployed.

In these households there are a wide variety of individuals. However, there is one thing that is true for almost all of them: Any additional money received will almost certainly be spent.

Our national economy grows when demand for goods and services increases.

Our entire society will be much better off if those in lower paid jobs are paid more - a lot more.

For those workers to be paid more the price of the goods and services they produce will have to go up. It will cost more to give a better life to those in the bottom half.

Where will the money come from?

From all of us but mostly from those having much more money to spend: the upper half my fellow Americans - those who make more each year than the median annual household income of $58,328. This half of our population will have to pay more.

Turn our country around:

Pay more to those who do your bidding.

Practice “taking less” to add to your pile of personal wealth.

Buy more from others and pay more for it.

Let us have a more prosperous country - one where even the least among us may look ahead to a better and more promising future.