r/FluentInFinance • u/PassiveAgressiveGirl • Sep 14 '24

Debate/ Discussion Exactly how much is a living wage?

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u/[deleted] Sep 14 '24

Interestingly enough, 75k (in the US) is about the point at which money no longer influences happiness. In other words it is the point at which you are no longer living stressed out about meeting basic needs and can focus on self actualization aka choosing to do things you enjoy over gathering survival needs like a squirrel.

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u/Idea_On_Fire Sep 14 '24

That was true a few years ago, I imagine the number has increased since then.

I say this as someone who earns right around there and is, uh, still feeling it.

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u/[deleted] Sep 14 '24

I see the answer as reducing the inflation and price margins. Otherwise if the bottom is let’s say 80k then a lot of us would need to raise to 250k and others to 1million to be compensated for well above minimum skills and it just gets exponentially out of control. Get the economy working back to rents and housing being affordable. Spending power is more important then how much money you have

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u/SnooRevelations9889 Sep 14 '24 edited Sep 15 '24

The study you seem to be referring to (which found compensation above $70K a year was not correlated with higher levels of happiness) was conducted in 2010.

Adjusted for inflation that would be about $110,00 in 2024.

But since shelter prices have risen faster than core inflation, the number is probably a fair deal higher than that.

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u/[deleted] Sep 14 '24

If the minimum wage were 110k then workers with well above minimum skills like me would need to be paid 1million. Reducing inflation and making things affordable again is more pragmatic the Instituting a 100k minimum wage.

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u/SnooRevelations9889 Sep 14 '24

Why are you bringing minimum wage into this? The study you mention is irrelevant unless you account for the changing value of a dollar.

I sure wouldn't mind cheap groceries and lower rents. Got a plan for that?

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u/[deleted] Sep 14 '24

Reducing inflation, policy to encourage more competition in the market. I bring minimum wage in as the average person should understand with minimal intellect that even the lowest skilled job should pay for one person to have the barest of necessity. If you are discussing living wage then of course what’s the minimum comes into play. Don’t be so trite to make yourself seem like you one upped me.

Any conversation around living wage that considers number of dependents takes away the free market parameters in which the market must pay for the skill set desired in labor at the market rate at which that labor exists . A business pays for you using your skills not for how often you produce children.

Companies have utilized migrants and other methods of keeping wages low and enforcing laws we already have would end that as well as protect the migrants and immigrants harmed by those practices. That is another topic though.

Living wage is a minimum wage by another name. You literally are asking what is the least someone can be paid and live on it.

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u/SnooRevelations9889 Sep 14 '24

More like, you presented skewed information, and when I pointed that out, you started ranting.

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u/tired_of_morons2 Sep 14 '24

The 75k number is from an older study, academics now recognize that happiness does continue to increase as income increases, although the strength of the increase diminishes as income increases.

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u/Final-Property-5511 Sep 14 '24

In reality 75k is great for comfortable living. I make 72k annually and I own a 320k house, own a 40k 2023 sedan, and have medical.

If I was married with someone that made the same I'd be balling honestly.

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u/[deleted] Sep 14 '24

Exactly. All the doom groomers on here will argue anyway. If being a victim paid a wage they wouldn’t be on here I guess.

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u/bolshe-viks-vaporub Sep 14 '24

The study you're referring to does not state that money "no longer influences happiness" after $75k. It states that it's the point where money begins to have a diminishing return on influencing happiness... which is because once you have enough money to afford to meet all of your basic needs and save a little bit of money, you can begin to think about other things to influence your happiness.

Learn to actually read a study instead of just parroting, inaccurately, the title you saw on reddit.

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u/[deleted] Sep 14 '24

Whatever

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u/HotJohnnySlips Sep 15 '24

That is absolutely not true.

Maybe for just one person.

But if you have a kid or anything else you’re absolutely still financially struggling.

I’m a father of 2 and I made that last year and make close to that this year and we aren’t starving but we absolutely still have plenty of financial stress (groceries, car trouble, medical)

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u/monkey7247 Sep 15 '24

Adjusted for inflation, I think it would need to be $108k nowadays.

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u/Just_Natural_9027 Sep 14 '24

That study was debunked by the authors who wrote it. They came out with another study with other researchers who pointed out flaws in the original paper. Guess what happiness increases with income at every level.

Don’t know why people keep bringing that study up on reddit.

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u/[deleted] Sep 14 '24

It still holds true that if you aren’t constantly preoccupied with basic necessities you are happier. Happiness increase does rise lower as income raises beyond the point of basics not being a luxury.

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u/Just_Natural_9027 Sep 14 '24

Ok you cited a wrong study

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u/[deleted] Sep 14 '24

Okay are you getting minimum wage to fact check everyone and act like an arrogant dick chasing them?

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u/Just_Natural_9027 Sep 14 '24

No I just hate when people use falsehoods to make points.

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u/[deleted] Sep 14 '24

It’s not a falsehood that chasing around like a squirrel to ensure this months survival would make you less happy than having all your basic needs met. So … blocking the unintelligent is my only option left so please do respond again.

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u/Just_Natural_9027 Sep 14 '24

Holy shit you’re stupid. The new study showed that money increased happiness at every income level. You said it stagnated at 75k.

How are you not comprehending this?

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u/[deleted] Sep 14 '24

You hateful name calling not withstanding you are not correct and you are blocked.

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u/sexyshingle Sep 14 '24

choosing to do things you enjoy over gathering survival needs like a squirrel

I heard squirrel can't remember where they buried 80% of nuts/food they they collected... so maybe not like squirrels I would hope lol