Yes, the Rent is Too Damn High — But Not Because the Minimum Wage is Too Damn Low

Canterbury Apartments, Hollywood. Photo by Downtowngal. Creative Commons Attribution-Share Alike 4.0 International license.
Canterbury Apartments, Hollywood. Photo by Downtowngal. Creative Commons Attribution-Share Alike 4.0 International license.

“Full-time minimum wage workers cannot afford a two-bedroom rental anywhere in the U.S.,” Alicia Adamczyk writes at CNBC, “and cannot afford a one-bedroom rental in 95% of U.S. counties.” Adamczyk gets her figures from the National Low Income Housing Coalition’s annual “Out of Reach” report.

Here are a few numbers NLIHC isn’t as eager to talk about:

According to the US Bureau of Labor Statistics, a whopping  1.9% of all American workers, and only 1% of full-time workers, earned minimum wage as of 2019. Also per BLS, minimum wage workers are more likely than average to be employed in food service jobs where wages are often supplemented with tips.

According to the Economic Policy Institute, 60% of workers in the lowest income decile (which would include minimum wage earners) receive public assistance benefits that top off a full-time minimum wage earner’s wages by an average of about $1.50 an hour.

And then we come to two assumptions in the NLIHC report that become problematic, especially when combined.

The first assumption is that rent is only “affordable” if it comes to less than 30% of a person’s income. But that seems awfully one-size-fits-all. What if spending 35% of my income on rent saves me 10% of that income somewhere else — utility bills or gas costs for longer commutes, for example?

The second assumption is that that there’s only one earner living in (or at least only one earner contributing to the rent on) the household. That assumption seems especially silly as applied to two-bedroom rentals. In reality, many people share housing. They move in with their romantic partners, or find amicable roomies. Just as many hands make light work, many paychecks make lower per-person rent.

Is the rent, as Jimmy McMillan says, too damn high? In some places, absolutely. In many places, probably.

Is the rent being too damn high a function of the minimum wage being too damn low? No. A tiny fraction of one percent of Americans struggling to make rent are full-time minimum wage workers without secondary sources of income.

The rent is too damn high because the housing supply is too damn limited.

Who are the geniuses limiting the housing supply with permit schemes, zoning restrictions, and supposed “fair housing” rules, all while pretending they’re doing tenants a favor?

The same geniuses who oppress workers with minimum wage laws, licensing requirements, and supposed “labor protections,” all while pretending they’re doing workers a favor.

Making it harder for the average worker to earn a living and find  a place to live may not be the intended purpose of government as we know it, but it’s certainly the result of government as we know it.

Perhaps it’s time for America’s workers to re-think government as we know it.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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The Road to Hell is Paved with Economic Plans

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Democratic presidential candidate Joe Biden says he has an economic plan for America to “Build Back Better.” US president Donald Trump complains that Biden “plagiarized” significant elements of that plan from, you guessed it, Donald Trump.

Both plans are packed full of bad ideas that have been proposed a thousand times by a thousand other politicians, so the plagiarism claim seems more trollish than truthy. The problem with both economic plans isn’t that they’re plagiarized, it’s that they ARE economic plans.

What is an economy?

Ask a politician, and you might get the idea that an economy is a metaphorical truck full of goodies. Give the keys to the right politician and everyone gets candy and ice cream. Give the keys to the wrong politician and he rolls the truck into a ravine and everyone starves.

Ask a bureaucrat, and you’re likely to get lists of “key indicators,” accompanied by graphs and charts attempting to explain life, the universe, and everything in terms of those indicators.

In actuality, an economy is the aggregate of nearly every decision, made by nearly every human being on the planet, nearly every second, of nearly every hour, of nearly every day.

The economy is whether you have lunch, and if so what you eat and how much of it.

The economy is whether you go to work today or call in sick and return to bed.

The economy is whether you try to make that old beater last one more year, or give in and go shopping for a new car, or start bicycling more and driving less.

The economy is everything you and eight billion other people decide to buy or not buy, sell or not sell, consume or not consume, and do or not do, 24/7/365, cradle to grave.

The idea that a politician or bureaucrat (government or corporate) can come up with an “economic plan” that takes all the relevant variables into account — forecasts what people need or want and efficiently allocates resources to make sure they get it — isn’t just silly, it’s dangerous.  We’re not even very good at forecasting the weather yet. Behind politicians’ “economic plans” lies the kind of hubris that that turns recessions into depressions, droughts into mass starvation episodes, and trade wars into shooting wars.

According to the “Build Back Better” plan, “Joe Biden believes to his core that there’s no greater economic engine in the world than the hard work and ingenuity of the American people.” Trump makes similar noises.

If they actually believed it, their “economic plans” would be identical and 11 words long: “Laissez faire et laissez passer, le monde va de lui meme” (“Let do and let pass, the world goes on by itself”).

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

PUBLICATION/CITATION HISTORY

School’s Out. Reactionaries Hate That.

If there’s been one bright spot in America’s COVID-19 experience, it’s the near-complete shutdown of an expensive and obsolete government education system cribbed from mid-19th century Prussia.

Across the country, “public” pre-K thru 12th-grade programs closed their doors this spring. Some districts attempted to hobble along using not yet ready for prime time online learning systems. Others just turned the kids loose to likely learn far more than they would have in the combination daycare centers and youth prisons that pass for schools these days.

It was a perfect opportunity to scrap “public education” as we know it, perhaps transitioning entirely to distance learning as a waypoint on the journey toward separation of school and state.

Naturally, the political class hates that idea. Primary and secondary education constitute an $800 billion per year job and welfare program, with beneficiaries (read: voters and campaign contributors) up and down its extensive food chain.

Florida Education Commissioner Richard Corcoran isn’t one to let a little thing like a pandemic derail that gravy train: He’s ordered the state’s government schools to re-open in August,  operating at least five days per week and offering “the full panoply of services” — from glorified babysitting to teacher pay to big agribusiness buys for school lunch programs — to those beneficiaries.

It seems likely that most states will follow Corcoran’s lead to one degree or another, naturally also seeking ways to blow even more money than usual on enhanced social distancing, increased surface disinfection work, etc.

That seems to be the consensus of the entire American mainstream political class, from “progressive left” to “conservative right.”

Yes, Republicans and evangelical Christians will bellyache about the teachers’ unions,.

Yes, Democrats and the unions will gripe about charter schools and voucher programs.

But they’re united in their determination to resuscitate the system as it existed before the pandemic, instead of letting that rotten system die a well-deserved death and moving on to better things.

There’s a word for that attitude.

The word is “reactionary.”

As time goes on, we’ll hear lots of agonized propaganda about how the pandemic has forced huge changes in “public” education. Those changes will be entirely cosmetic. The authoritarian infrastructure beneath won’t have changed at all.

By letting the political class pretend that history can be forced to run backward, we’re denying future generations the real educational opportunities that past generations denied us.

School’s out. We should keep it that way.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

PUBLICATION/CITATION HISTORY