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.
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?
You can maybe wait three + years for a Section 8 voucher!
If applying for that is anything like applying for unemployment, good luck lol.
In some places, that’s on a lottery system.