Minimum Wage vs. Adequate Income?

Jeanette Sherbondy, Ph.D. • April 18, 2018

It’s a shock to realize that no one who is working fulltime for the federal minimum wage can support herself in any county in the U.S. Each American has the same amount of time each day for working, something less than 16 hours. Some have incomes larger than the budgets of countries. That’s the upper 10 percent. Some work full time, every day, all year, with no vacations, and receive the federal minimum wage, and cannot support their families, and not even themselves.

In the absence of action by Congress, several states have raised the minimum wage. It’s not enough, but it demonstrates that it is worth it. Working production increases and there is faster wage growth, especially at the bottom, for those in the lower 10percent. Those states showed growth more than twice as fast as the others. Elise Gould, a researcher for the Economic Policy Institute, an independent, non-profit, think tank ( www.epi.org ), calculated that those states that raised the minimum wage at least once between 2013 and 2017 showed 5.2% growth whereas the others grew only 2.2% -- that is more than half! Women benefitted enormously and men’s wages improved also, but less dramatically, indicating that more men than women were already at or above the minimum. Maryland is one of those more fortunate states. Maryland raised its minimum wage to $9.25 starting in July 2017 and it will increase to $10.10 in July 2018, then $12 in July 2019. It will go up a dollar each year until it reaches $15 per hour in July 2022. The federal minimum wage is only $7.25/hour with no increases in sight.

The EPI (Economic Policy Institute) calculated for each and every county in the United States how much a household needs in order “to attain a modest yet adequate standard of living.” For each community and each metro area, EPI researchers calculated the specific costs for 10 different family types (1 to 2 adults with zero to four children). How do the counties of the Eastern Shore stack up?

In Queen Anne’s county, the costliest, a family of two adults (both fully employed) with two children needs at least $7,922/month or $95,067/year, for housing, food, childcare, transportation, health care, other necessities, and taxes. A family in Somerset County, the least costly, requires $5,985/month or $71,821/year. Even Maryland’s higher than average minimum wage is inadequate. Each person earning minimum wage in Maryland, working 40 hours a week for 52 weeks earns only $19,240 annually and both parents doing the same, only $38,480. That’s only slightly over half of what is needed for a “modest yet adequate standard of living” in Somerset County. (For the calculated “Modest Yet Adequate Standard of Living” for each county on the Eastern Shore, see the next article.)

Does Congress really think that the current federal minimum wage is sufficient “to ensure that all work would be fairly rewarded and that regular employment would provide a decent quality of life”? Congress is ignoring their obligation towards the working families they represent. The EPI ( www.earn.us) comments that the “decline in value of the minimum wage has contributed to wage stagnation, and is directly responsible for widening inequality between low-and middle wage workers.”


Common Sense for the Eastern Shore

Farm in Dorchester Co.
By Michael Chameides, Barn Raiser May 21, 2025
Right now, Congress is working on a fast-track bill that would make historic cuts to basic needs programs in order to finance another round of tax breaks for the wealthy and big corporations.
By Catlin Nchako, Center on Budget and Policy Priorities May 21, 2025
The House Agriculture Committee recently voted, along party lines, to advance legislation that would cut as much as $300 million from the Supplemental Nutrition Assistance Program. SNAP is the nation’s most important anti-hunger program, helping more than 41 million people in the U.S. pay for food. With potential cuts this large, it helps to know who benefits from this program in Maryland, and who would lose this assistance. The Center on Budget and Policy Priorities compiled data on SNAP beneficiaries by congressional district, cited below, and produced the Maryland state datasheet , shown below. In Maryland, in 2023-24, 1 in 9 people lived in a household with SNAP benefits. In Maryland’s First Congressional District, in 2023-24: Almost 34,000 households used SNAP benefits. Of those households, 43% had at least one senior (over age 60). 29% of SNAP recipients were people of color. 15% were Black, non-Hispanic, higher than 11.8% nationally. 6% were Hispanic (19.4% nationally). There were 24,700 total veterans (ages 18-64). Of those, 2,200 lived in households that used SNAP benefits (9%). The CBPP SNAP datasheet for Maryland is below. See data from all the states and download factsheets here.
By Jan Plotczyk May 21, 2025
Apparently, some people think that the GOP’s “big beautiful bill” is a foregone conclusion, and that the struggle over the budget and Trump’s agenda is over and done. Not true. On Sunday night, the bill — given the alternate name “Big Bad Bullsh*t Bill” by the Democratic Women’s Caucus — was voted out of the House Budget Committee. The GOP plan is to pass this legislation in the House before Memorial Day. But that’s not the end of it. As Jessica Craven explained in her Chop Wood Carry Water column: “Remember, we have at least six weeks left in this process. The bill has to: Pass the House, Then head to the Senate where it will likely be rewritten almost completely, Then be passed there, Then be brought back to the House for reconciliation, And then, if the House changes that version at all, Go back to the Senate for another vote.” She adds, “Every step of that process is a place for us to kill it.” The bill is over a thousand pages long, and the American people will not get a chance to read it until it has passed the House. But, thanks to 5Calls , we know it includes:
By Jared Schablein, Shore Progress May 13, 2025
Let's talk about our Eastern Shore Delegation, the representatives who are supposed to fight for our nine Shore counties in Annapolis, and what they actually got up to this session.
By Markus Schmidt, Virginia Mercury May 12, 2025
For the first time in recent memory, Virginia Democrats have candidates running in all 100 House of Delegates districts — a milestone party leaders and grassroots organizers say reflects rising momentum as President Donald Trump’s second term continues to galvanize opposition.
Shore Progress logo
By Jared Schablein, Shore Progress April 22, 2025
The 447th legislative session of the Maryland General Assembly adjourned on April 8. This End of Session Report highlights the work Shore Progress has done to fight for working families and bring real results home to the Shore. Over the 90-day session, lawmakers debated 1,901 bills and passed 878 into law. Shore Progress and members supported legislation that delivers for the Eastern Shore, protecting our environment, expanding access to housing and healthcare, strengthening workers’ rights, and more. Shore Progress Supported Legislation By The Numbers: Over 60 pieces of our backed legislation were passed. Another 15 passed in one Chamber but not the other. Legislation details are below, past the budget section. The 2026 Maryland State Budget How We Got Here: Maryland’s budget problems didn’t start overnight. They began under Governor Larry Hogan. Governor Hogan expanded the state budget yearly but blocked the legislature from moving money around or making common-sense changes. Instead of fixing the structural issues, Hogan used federal covid relief funds to hide the cracks and drained our state’s savings from $5.5 billion to $2.3 billion to boost his image before leaving office. How Trump/Musk Made It Worse: Maryland is facing a new fiscal crisis driven by the Trump–Musk administration, whose trade wars, tariff policies, and deep federal cuts have hit us harder than most, costing the state over 30,000 jobs, shuttering offices, and erasing promised investments. A University of Maryland study estimates Trump’s tariffs alone could cost us $2 billion, and those federal cuts have already added $300 million to our budget deficit. Covid aid gave us a short-term boost and even created a fake surplus under Hogan, but that money is gone, while housing, healthcare, and college prices keep rising. The Trump–Musk White House is only making things worse by slashing funding, gutting services, and eliminating research that Marylanders rely on. How The State Budget Fixes These Issues: This year, Maryland faced a $3 billion budget gap, and the General Assembly fixed it with a smart mix of cuts and fair new revenue, while protecting working families, schools, and health care. The 2025 Budget cuts $1.9 billion ($400 million less than last year) without gutting services people rely on. The General Assembly raised $1.2 billion in fair new revenue, mostly from the wealthiest Marylanders. The Budget ended with a $350 million surplus, plus $2.4 billion saved in the Rainy Day Fund (more than 9% of general fund revenue), which came in $7 million above what the Spending Affordability Committee called for. The budget protects funding for our schools, health care, transit, and public workers. The budget delivers real wins: $800 million more annually for transit and infrastructure, plus $500 million for long-term transportation needs. It invests $9.7 billion in public schools and boosts local education aid by $572.5 million, a 7% increase. If current revenue trends hold, no new taxes will be needed next session. Even better, 94% of Marylanders will see a tax cut or no change, while only the wealthiest 5% will finally pay their fair share. The tax system is smarter now. We’re: Taxing IT and data services like Texas and D.C. do; Raising taxes on cannabis and sports betting, not groceries or medicine; and Letting counties adjust income taxes. The budget also restores critical funding: $122 million for teacher planning $15 million for cancer research $11 million for crime victims $7 million for local business zones, and Continued support for public TV, the arts, and BCCC The budget invests in People with disabilities, with $181 million in services Growing private-sector jobs with $139 million in funding, including $27.5 million for quantum tech, $16 million for the Sunny Day Fund, and $10 million for infrastructure loans. Health care is protected for 1.5 million Marylanders, with $15.6 billion for Medicaid and higher provider pay. Public safety is getting a boost too, with $60 million for victim services, $5.5 million for juvenile services, and $5 million for parole and probation staffing. This budget also tackles climate change with $100 million for clean energy and solar projects, and $200 million in potential ratepayer relief. Public workers get a well-deserved raise, with $200 million in salary increases, including a 1% COLA and ~2.5% raises for union workers. The ultra-wealthy will finally chip in to pay for it: People earning over $750,000 will pay more, Millionaires will pay 6.5%, and Capital gains over $350,000 get a 2% surcharge. Deductions are capped for high earners, but working families can still deduct student loans, medical debt, and donations. This budget is bold, fair, and built to last. That’s why Shore Progress proudly supports it. Click on the arrows below for details in each section.
Show More