Minimum Wage vs “Maximum Wage” in the USA May 26, 2006
During his presidency, Bill Clinton gave states the power to set their minimum wages above the federal level. Since then, 18 states have raised the minimum wage above the federal level of $5.15. On Tuesday, January 17th, 2006, Maryland became the 18th state in the nation to enact a law that will make Maryland’s minimum wage higher than the federal. Santa Fe’s $9.50-per-hour minimum wage is the highest in the nation, and there are plans to increase this wage to $10.50 in 2008.
$5.15 x 40 hours = $206/week x 4 = $824/month x 12 = $9,888 per year.
$5.15 x 60 hours = $309/week x 4 = $1,236/month x 12 = $14,832 per year.
$9.50 x 40 hours = $380/week x 4 = $1,520/month x 12 = $18,240 per year.
$9.50 x 60 hours = $570/week x 4 = $2,280/month x 12 = $27,360 per year.
For comparison, let’s compare that with a first year lawyer associates at a law firm or a physician who makes $150,000 (assume a typical 60 hour work week):
$52 x 60 hours = $3,125/week x 4 = $12,500/month x 12 = $150,000 per year.
And let’s compare that with a Fortune 100 CEO median compensation of $17.9 million (”maximum wage”):
$6,215 x 60 hours = $372,916/week x 4 = $1,491,666/month x 12 = $17,900,000 per year.
That’s over 1200 times more than someone making minimum wage working a 60 hour week and 120 times more than a lawyer or doctor making $150,000/year!
Ref:
- Wikipedia, US State minimum wages
- CEO pay soars in 2005 as a select group break the $100 million mark, USA Today