Just getting by

The chronic shortage in Maine of the kinds of jobs that provide high wages and stability is well known. What may be less understood is the effect this has on Maine workers and their families. A new report by the Maine Center for Economic Policy called Getting By in 1999 could serve as a model for state lawmakers as they address this problem in the coming session.

The report by the Center for Economic Policy asks a simple question, How much do you need to earn in Maine to get by? The answer, broken down by the size of household and location in the state, is anything but simple. However, the conclusions of the study show that many Maine residents are working full time but not earning enough to pay for the necessities in life – rent, health care, food, transportation, child care, household goods, etc. The result is not only the way life shouldn’t be for them, but also an economic burden on everyone.

Maine’s problem is this: To meet basic living needs in Maine for a family of three — a parent and two kids — requires an hourly wage of $14.61; for two parents (both working) and two kids, the total wage needed is $20.66 an hour. The median hourly wage in Maine last year was $10.29. The current minimum wage is $5.15. A significant number of working Mainers, then, are not earning what is necessary to get by.

The report quotes the Maine Economic Growth Council, which succinctly describes an idea as old as the Model T. If people are not earning a high enough wage to support themselves and their non-income earning dependents (such as children, spouse or elders), they are either forced to live without some basic necessities or they must depend on some type of public assistance. Each has a negative impact on the economy. Jobs that pay below a livable wage, on balance, are not likely contributing to economic growth. In fact, they ultimately result in higher taxes for Maine businesses and citizens.

And this is a problem likely to grow worse, if current economic policies and trends continue. Not only does Maine offer a low wage that in the end costs more and more, but its wages are falling compared with the rest of the nation. According to the Bureau of Labor Statistics, Maine ranks between 35 and 40 among states for wages, but, worse, the most recently available numbers for wage increases place Maine 32nd in the nation, behind every New England state but Vermont. At a time of rock-bottom unemployment, low wages continue to plague Maine.

This is where the Legislature comes in. The center offers five policy measures, some of which lawmakers already are considering, that could make a difference. It recommends the following: Revise the state measures of poverty to reflect the actual cost of living; raise the minimum wage; begin a state earned income tax credit; expand access to health insurance; offer incentives for businesses to offer better wages. These are entirely sensible ideas that have been considered time and again in Augusta without much effect.

Before Maine falls any further behind in wages, it should change the pattern that brought this problem about. The center’s recommendations are a good way to start.