First, the definition of a living wage, as set by the Economic Policy Institute.
Quote:
The living wage level is usually the wage a full-time worker would need to earn to support a family above federal poverty line, ranging from 100% to 130% of the poverty measurement. The wage rates specified by living wage ordinances range from a low of $6.25 in Milwaukee to a high of $12 in Santa Cruz.
Yes, there should be a living wage instituted for the entire country. There are so many problems related to minimum wage - that people cannot live and support their families on, even with two jobs, even living out of their cars, even homeless. Minimum wage doesn't help people stay off of the streets and doesn't allow them to have the kind of standards of life that America says all of it's citizens hold. With a living wage, so many disadvantaged families, children, single parents, would finally be able to afford their housing, their food, the essientials they need to live.
One of the problems with a living wage is - would families even be able to afford healthcare? Would this (let's say it's mandatory for all states to institute it for a moment, even though that is highly improbable) raise to a living wage increase outsourcing to other countries for cheaper products? Would employers themselves go out of business if they instituted a living wage?
I'm not sure about healthcare, but according to the Economic Policy Institute, when a living wage was put into place in Baltimore, there was no reported job loss inside of the city.
Quote:
Employers interviewed for the study reported that although wages increased, these costs were absorbed by improvements in efficiency. By raising wages, they decreased employee turnover rates, which decreased recruitment and training costs.
Here are some more frequently asked questions about the living wage that are answered (like does the wage really reduce poverty, does it promote job loss, etc):
http://www.epinet.org/content.cfm/issueguides_livingwage_livingwagefaq