Minimum Wage and the Cost of Living

The federal minimum wage is $7.25 an hour

Tools

By Heather Hintze
Bio | Email

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.
 

You have indicated this comment should be removed.

Close

The comment has been submitted for review. Thank you .

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.

92010106
Inappropriate? Alert Us!

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.

91976225
Inappropriate? Alert Us!

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.

91970696
Inappropriate? Alert Us!

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!

91964884
Inappropriate? Alert Us!

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!

91962536
Inappropriate? Alert Us!

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

minimum wage is 7.75 not 7.25

91958455
Inappropriate? Alert Us!

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.

91951005
Inappropriate? Alert Us!

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.

91943456
Inappropriate? Alert Us!

Add a comment

Name:

Comment: 1000 Characters Left

KTVA CBS 11 | Anchorage, Alaska News and Weather and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.