Minimum Wage and the Cost of Living

The federal minimum wage is $7.25 an hour

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By Heather Hintze
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Story Created: May 25, 2012 at 8:31 PM AKDT

Story Updated: May 26, 2012 at 7:48 AM AKDT

ANCHORAGE - The federal minimum wage is $7.25 an hour. In Alaska, it's $7.75 an hour.

It's not much, but significantly higher than not much when minimum wage was enacted in 1938.

Back then people were making $0.25. It's been raised 22 times over the past 74 years.

But many have a hard time living on minimum wage because of the cost of living. There's no question the cost of living is high in Alaska.

In Anchorage, to be able to afford a $900 apartment a person would need to make about $17 an hour.

Economists say the cost of living in rural parts of Alaska can be up to 40 percent higher than the national average.
 

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jt said on Saturday, May 26 at 9:20 AM

Minimum wage is not intended to be a "Living wage". It is for entry level workers. Pull your head out.

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Shawn Klemmer jr. said on Saturday, May 26 at 11:38 AM

Why hasn't the legislators, or the people of Alaska demand at least $8.50 to $9.00 hourly minimum wage. Things are going up so fast here. That at least it should be $1.00 more than the nation average. Alaskan people are getting ripped off.

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guest said on Saturday, May 26 at 1:49 PM

minimum wage is 7.75 not 7.25

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Anonymous said on Saturday, May 26 at 3:16 PM

With minimum wage you would need a roomate and a half to live in an apartment in Anchorage. That sucks!

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Anonymous said on Saturday, May 26 at 4:16 PM

wages do need to be higher - but the employers need to step up and offer a " advancement " in terms of funding (contribute 50%) to state and federal certifications and/or eligibility levels with jobs. and there is a tax break for that contribution too!

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sbrcln said on Saturday, May 26 at 6:22 PM

Minimum wage don't even make it in Anchorage and worse in the rural area.

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SE said on Saturday, May 26 at 8:21 PM

It does not do any good to raise minimum wage all that happens is inflation rises (in a lot of cases overnight) to adjust for the increase in wages. You get a higher wage, but increased cost of living with it. Many businesses will actually take advantage of minimum wage increases to add in extra price hikes just so they blame it on minimum wage increases.

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Brendan Joel Kelley said on Sunday, May 27 at 10:45 AM

@Guest: Federal minimum wage is $7.25; Alaska law says our state minimum wage must be $0.50 higher than the federal minimum wage. That's the first two lines of the article. - Brendan Joel Kelley, KTVA.com editor.

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