Okay, to begin, I was never a business person. In fact, I just wanted to make art for my entire life and not care what anyone thought. That is, until I realized that all of us are in real trouble. At the job that I’ve been at for nearly 3 years, I’ve hardly gotten a raise and make about 45$ working a full eight hour shift. SOMETHING IS TERRIBLY WRONG HERE. Thinking of this, that is when I started to do my own research and this is what I came up with:
In 1968, the federal minimum wage was $1.15 and the cost of gas was, on average, $0.34. This means that the price of gas was one-third of a person’s minimum wage. Now, comparing that to now, the federal minimum wage is $7.25 and the cost of one gallon of gas in 2013 was $3.49 (http://money.cnn.com/2013/12/31/news/economy/gas-prices/). This means that the cost of travel has gone up from being one-third of minimum wage to one-half. This may not sound like a huge change, but think of it this way: we are spending a larger percentage of our wages to get to our jobs that now pay us less than 50 years ago relative to inflation. This trend has been going on for nearly fifty years… do you think it will change anytime soon?
My answer to that would be a big N-O. According to a recent study, if minimum wage had gone up with inflation as it was supposed to, then the federal minimum wage today would be $10.74 (http://www.raisetheminimumwage.com/facts/). Another study, done by the Huffington posts speculates that if minimum wage had kept up with the cost of living in general and worker productivity, it would be a whopping $21.72 (http://www.huffingtonpost.com/2013/02/13/minimum-wage-productivity_n_2680639.html)!!We would be living the good life then!
Oh, wait, but we wouldn’t… because we would still be trading irreplaceable time for dollars! In today’s world, we are so encouraged to do this, though, that we don’t even question it. I never did! That is, until I took a look at these facts and realized that no matter what, this system doesn’t work. Trading hours for dollars will never get us anywhere. However, building an asset once that will continually bring us wealth is the answer to this problem. This, my friends, is why we all need to build a business. Doing this will help us all to lead happier, more fulfilling lives where we can spend our lives doing things that we want to, rather than doing things that others want us to!
-Monica and Kenneth