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Joel John Roberts

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Unlivable Wages Mean Unlivable Conditions

Posted: 06/ 9/11 12:49 PM ET

I glided my car off of the 10 freeway, a California interstate that crosses Los Angeles from west to east, to find a scraggly old man wearing a filthy coat and clutching a tattered cardboard sign that read: Will Work For Housing. He stood at the freeway exit, about three cars ahead of me.

When the signal light turned green, the guy in the BMW SUV in front of me stuck his head out and screeched at the top of his lungs toward the homeless man, "Get a job you lazy SOB!" The SUV tires practically burned rubber before the homeless man could fully understand what happened.

For those of us living in the Los Angeles region, what many refer to as the Homeless Capital of America, such outbursts of anger are not infrequent. After a few decades of the escalation of homelessness in this country, some hardworking people feel resentful at people who take advantage of our nation's social welfare system. Especially when the roots of this country are founded on a Puritan culture that embraces the mantra: there is no such thing as a free ride.

But to simply scream at a person entrenched in extreme poverty to get a job will not end homelessness for that man standing at the freeway off-ramp.

Here's why. In Los Angeles, the average rent for a one-bedroom apartment, as of May 2011, is $1,315 per month. Many housing experts believe that in order for a person to be able to pay for housed-living (such as food, utilities, transportation and clothing), a person should not pay more than one-third of his monthly income toward rent. That means in Los Angeles, the homeless man standing near the freeway needs to earn $22.76 per hour to afford the average rent for a one-bedroom apartment.

Minimum wage in Los Angeles, however, is only $8 per hour. A person earning this rate could barely pay his rent, and would have nothing for food, utilities or anything else. In other words, he would be sitting in an empty apartment, darkened because of no electricity, and hungry because of not enough income to buy food.

Even if a person paid half of his monthly income toward rent, he would have to find a job that pays $15.17 per hour to afford a Los Angeles apartment.

It doesn't take a mathematician to conclude that this social math just doesn't work.

So, like passionate activists in Northern Africa, the voices from American homeless advocates are rising, calling for a mandatory wage rate that would allow a person to earn enough money to pay for rent. People like Richard R. Troxell, the author of the book, Looking Up at the Bottom Line, are promoting a "Universal Living Wage."

Their message actually reflects a Puritan perspective: full-time work should be rewarded with access to permanent housing. If a person works 40 hours per week, he should have the ability to afford housing.

Critics, however, don't believe in an artificial employment market. Pay rates should be based on a free market's supply-and-demand environment, otherwise businesses will move away from communities that instill mandatory living-wage rates.

But if businesses move to regions where the minimum wage is so low that its low-paid workers have no chance of finding a home affordable enough to rent, then businesses will have a very small talent pool of people.

It used to be that one full-time wage earner in America could support a family of four in a home that the worker actually owns. Today, America's families need at least two wage earners just to be able to rent a one- or two-bedroom apartment.

The odds of that homeless man standing at the freeway off-ramp finding a job at $22.76 per hour (or $47,340 per year) are nearly impossible. Screaming at him to find a job that pays enough to rent an apartment is simply futile.

Ending homelessness in this country means raising the rate of pay for hard-working people, or lowering the rate of rents, or building enough apartments that are affordable to everyone.

My vote is to get that homeless man near the freeway into an affordable apartment first, then help him find a job.

Maybe that man's cardboard sign should read: Will be Housed For Work.

 
 
 

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I glided my car off of the 10 freeway, a California interstate that crosses Los Angeles from west to east, to find a scraggly old man wearing a filthy coat and clutching a tattered cardboard sign that...
I glided my car off of the 10 freeway, a California interstate that crosses Los Angeles from west to east, to find a scraggly old man wearing a filthy coat and clutching a tattered cardboard sign that...
 
 
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maxfax
Taa - dah!
12:02 AM on 06/12/2011
Keep following the plan of no taxes for the wealthiest and corporations, and we'll have millions living on the streets.
10:20 PM on 06/28/2011
I think that the government in all its forms have too many employees. Their pay comes from the tax dollar so although they pay taxes, they are only giving back some of what they earned from the tax dollar to begin with. This leaves the workers in the US actually paying taxes that didn't come out of the government coffers to begin with the only ones adding to the overall tax base. Please excuse spelling, punctuation and grammar. Yes, I wents to college and gots a degree. LOL No matter what minimum wage is, a single person will not be able to live on that money when paying taxes on so many things. Taxes keep the price of everything up.
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baxtron
tek phlarpt
12:59 PM on 06/10/2011
I've watched multiple home flipping shows where the buyer is taking the house for less than $100,000. I'm sure it's not in a great LA neighborhood, but the cost will be less than rent. Sift through the vast amount of vacant houses before paying $1312 for rent.
HUFFPOST SUPER USER
Wonder Woman2
Whats a micro-bio/
01:03 AM on 06/12/2011
A 100K is still nearly $750 plus taxes and insurance- over 1000 I'd say.
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HUFFPOST BLOGGER
rtgmath
There has got to be a better way!
10:09 AM on 06/12/2011
Now who would loan the homeless money to buy that house? Who would loan someone making minimum wage the money to buy it?

The author has a good point. Having a place ought to be a human right.
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baxtron
tek phlarpt
09:27 AM on 06/13/2011
oh yeah. Former Pres Bush's "ownership society". I vaguely remember that speech.
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HUFFPOST SUPER USER
Waterphoneman
artist, musician, inventor & mouth from the south
06:26 AM on 06/10/2011
Desperate people commit desperate acts. This is one of the many reasons we have so many people incarcerated. Being hopeless is terrible.
04:06 AM on 06/10/2011
"In Los Angeles, the average rent for a one-bedroom apartment, as of May 2011, is $1,315 per month....That means in Los Angeles, the homeless man standing near the freeway needs to earn $22.76 per hour to afford the average rent for a one-bedroom apartment....Even if a person paid half of his monthly income toward rent, he would have to find a job that pays $15.17 per hour to afford a Los Angeles apartment."

What 'average' means here is that half of the apartments in LA can be rented for less than that amount. By the third sentence, the author has dropped the word 'average' altogether and is claiming that you need $15.17 to afford just 'a Los Angeles apartment' - when he really means an apartment that is better than ones that half the population is currently living in. Anyway, how many people live alone? If you are part of a working couple; the same math would work out to $11.38 per hour.
10:10 PM on 06/10/2011
Exactly what I was thinking.
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HUFFPOST SUPER USER
cryingliberty
You think Michigan's blue? You don't live here.
12:37 AM on 06/11/2011
This is incorrect. The average is just that - the average (or mathematical mean), not the halfway mark. The mathematical term for the halfway mark is the median, which may or may not be anywhere near $22.76 per hour. Just because the average is $22.76 could mean that a significant number of units are lower and offset by a small number of extremely expensive units, or the reverse could be true - and in a major metro area like LA, I'm more inclined to believe that the expensive units far outweigh the cheap ones.

The $15.17 figure he mentions is a different standard - he uses that wage level to denote the "one-half of wages to pay rent" mark, as opposed to the one-third level mentioned earlier.

Even so, the claim "how many people live alone" doesn't take into account the fact that those people may be living together out of necessity rather than choice. A lot of people take a roommate not because they want to, but because they have no other choice - there's simply no way for them to afford housing otherwise.
05:22 AM on 06/11/2011
The arithmetic average is the sum of a collection of numbers divided by the count of the numbers in the collection; while the median average is the middle number (or arithmetic average of the two middle numbers) in an ordered sequence of numbers. For small or unevenly distributed sets, the calculated value of two types of average can be very different. However, for large sets with a normal distribution (such as all the rental apartments in Los Angeles), the calculated value for either type of average will be essentially equal. Also, the relatively small number of people who can afford to rent very expensive apartments can also afford to purchase apartments and therefore are not likely to significantly influence average rents. In any event, the case that the author of the article uses as an illustration ("a scraggly old man wearing a filthy coat and clutching a tattered cardboard sign that reads: Will Work For Housing.") is hardly going to be a candidate to rent an 'average' priced apartment - however that average is calculated.
05:10 PM on 06/09/2011
I think apartments purposely set their rents out of reach of min-wage slaves.
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brokerallen
The Middle Class Needs To Take Back America
03:27 PM on 06/09/2011
For the GOP it is a far better thing to help the tribal Afghans than to help these poor miserable souls in LA.
01:53 PM on 06/09/2011
Oh, come on. Get a roommate. Get six roommates. Where is it written that everybody gets his/her own apartment? Do what the foreigners do, who come here to work. How is it that some of them can make eight bucks an hour, support themselves in LA or NY, and still send money home? Americans are absurdly spoiled, but it looks like those days may soon be over.
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angryoldman
No1 told me when 2 run I missed the starting gun
04:06 PM on 06/13/2011
Sooner father than later for you, I hope.
10:04 PM on 06/28/2011
In Massachusettes there are laws that prevent doing the roommate thing. The city or town would call that a rooming house and the laws are meant to discourge it.
01:26 PM on 06/09/2011
Thank you, Joel! Adequate amounts of affordable housing simply do not exist in Los Angeles, and we will never build ourselves out of this deficit. Living wages are essential if low-income and disabled people are to find housing in the market.
01:25 PM on 06/09/2011
For wages to appreciate two things have to happen:

1) Trade restrictions
2) Immigration restrictions

Both. Not either/or. Both. Period.

It won't happen. The logic of globalization will be followed off a cliff and the working class will be destroyed.
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HUFFPOST SUPER USER
Martha Fair
12:32 PM on 07/06/2011
Corporate globalization = Union Globalization

It's only a matter of time when they will be at the worker's mercy. They won't even see it coming because it's cyclable, just like the weather and the economy. Tough luck for corporate as*holes. Get ready for record wages for organized global workers. Most will soon have had enough. Their time for prosperity is coming and the greedy corporates will be over out of necessity. They have already pushed the envelope to an unsustainable level.