Here's the difference between a 'minimum wage' and 'living wage,' and why it matters
Near-historic inflation has drawn attention to the cost of affording the basics. Near-historic price increases for basics like food and gas have drawn scrutiny to a question at the heart of the economy: How much money must a worker make to stay afloat? The price of eggs has risen nearly 50% over the last year; while the cost of milk and bread have each jumped about 15%. Even after falling from a summer peak, gas prices remain 10% higher than a year ago. While price increases have slowed in recent months, they continue to hover near a 40-year high. For some, a pay hike has softened the blow. Nearly half of U.S. states raised their minimum wages at the outset of 2023. Meanwhile, some major companies have recently upped their entry-level pay. Target, for instance, hiked its base wage to $24 an hour last year. As cost increases persist and workers try to keep up, buzzwords like “poverty wage,” “minimum wage” and “living wage” are coming back into the lexicon, shaping conversations about wh...