Burger cooks cost taxpayers $7 billion a year
Low-wage workers are making less than their counterparts did 50 years ago, and are tapping Medicaid and food stamps to bridge the gap between paychecks.
By Leslie Patton, Bloomberg News
With jobs not paying enough for employees to meet their basic needs, an increasing number of working families must rely on publicly funded programs to make ends meet, according to a study from the University of California at Berkeley and the University of Illinois at Urbana-Champaign.
Fast-food employees have gone on strike this year to demand $15-an-hour pay and the right to form a union as income equality in the U.S. grows. Fast-food cooks make $9 an hour on average, according to the Bureau of Labor Statistics.
While thousands of workers have protested in cities including New York, Chicago, Los Angeles, Detroit and Milwaukee this year, the strikes have done little so far to change the restaurant sector, which employs more than 10 million Americans.
“The industry is a heavy user of minimum-wage and low-wage workers,” Sylvia Allegretto, an economist at Berkeley and an author of the report, said in an interview. “Low-wage workers today, in general, are making less than their counterparts did 50 years ago.”
That’s why some fry cooks are finding it harder to pull themselves out of poverty and get ahead, she said.
When workers tap programs such as Medicaid, food stamps, the earned income tax credit and temporary aid for needy families to bridge the gap between paychecks, the cost is borne by taxpayers, according to the report which analyzed the years 2007 to 2011.
More than half of fast-food worker families participate in these government programs, compared with 25 percent of the total U.S. workforce, the report shows.
Congress last raised the minimum wage in 2009, and President Barack Obama's call this year to increase it to $9 an hour from $7.25 has gone nowhere with lawmakers. Some states require pay that’s higher than the federal rate.
Worker advocacy group Fast Food Forward paid for the study. The New York organization receives funding from the Service Employees International Union.
More from MSN Money
"With jobs not paying enough for employees to meet their basic needs, an increasing number of working families must rely on publicly funded programs to make ends meet"
They all have the latest new cell phones, tv's, tablets though
But these jobs were never meant to be a career. At least not at the fast food places.
Supposed to be entry level jobs...starter jobs...part time jobs usually.
Unless it is a place you buy and run yourself, perhaps.
Damn, Instead of working my butt off to build a modest business for myself I should have just gotten a job at McDonalds and waited for the bleeding hearts to force McD's to pay me more than I would be worth.
Who knew "Fry cook" would one day be considered an actual career choice??? Other than Sponge Bob of course.
"Worker advocacy group Fast Food Forward paid for the study. The New York organization receives funding from the Service Employees International Union."
How about a complete study?
-% of citizens
-Avg education completed
-1 or 2 income family
-How many children
-Avg jobs applied for in a year (to see how many are even trying to better themselves)
I bet all those things would put together an interesting picture. . .
We spent over a trillion dollars on the last two wars,at least these folks are trying to make a paycheck,quite complaining.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market punctuated July with a broad-based retreat that sent the S&P 500 lower by 2.0% with all ten sectors ending in the red. The benchmark index posted a monthly decline of 1.5%, while the Russell 2000 (-2.3%) underperformed to end the month lower by 6.1%.
To get a better feel for what led to today's retreat, we'd like to look back to Wednesday, when the market had ample reason to rally, but did not. Instead, it ended basically flat after a sloppy day of ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'