Struggling by on minimum wage (Why BBC and not an American news source?)

[TechBear_Seattle]

Struggling by on minimum wage

The Democrats who now control the US House of Representatives have made raising the minimum wage a top priority. As they pass a bill, the BBC News website's Richard Allen Greene hears from a woman who is hoping to see her pay rise.

Gina Walter eats off paper plates. She would rather use her dishes, but she says she cannot afford the water bills that would come from having to wash up every night.

"I would like to eat off dishes but it's just not feasible with my income," she says.

Mrs Walter works as a cashier in a thrift store in Columbus, Ohio. She has been earning $6.25 (£3.23) an hour, more than the US minimum wage of $5.15, but not as much as the $7.25 the Democrats are hoping to make mandatory.

The story continues at http://news.bbc.co.uk/2/hi/americas/6246969.stm

Added To give some perspective... the $5.15 US minimum wage translates to 2.66 GBP (Great Britain Pounds.) When I was in the UK last month, a Quarter Pounder Extra Value Meal cost about 4.99 GBP, not including taxes. In other words, an American would have to work a bit more than two hours at minimum wage to afford an Extra Value meal in London. Sad, isn't it?

[muriel_volestrangler]

1. For what it's worth, the current exchange rate makes the UK look expensive

The purchasing power parity calculations that the OECD uses (which are also more stable than the exchange rate, which is subject to dealers and their emotions) give the rate at about $1.60=£1.

OECD rates up to 2005

So $5.15 would be about £3.22; that makes a British McDonald's meal (which I would think you have the price including tax - retailers always quote prices including VAT in the UK) about 1.5 hours of the US minimum wage.

For comparison, the new US wage will be about £4.53 using PPP; the UK minimum wage is currently £5.35 for those over 21 (there are 2 lower rates for those younger).