Math 101: Gas Prices vs. Minimum Wage
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Math 101: Gas Prices vs. Minimum Wage
Math 101: Gas Prices vs. Minimum Wage
As gas prices continue to rise, up comes the debate in the US Government about raising the minimum rate wage from the current $5.15 per hour.
Let’s take a look at the current minimum wage of $5.15 per hour and the average price of gas, as stated in the Tampa Tribune this morning August 8, 2006, of $2.97 per gallon for 87 Octane and see how much a person on minimum wage has to work to fill up their 10.0 gallon gas tank.
I used the website Payroll Calculator to find that of that $5.15 per hour we take home per hour in the State of Florida, using the zip code 33619, after taxes, is $4.76 per hour. That is with a tax status of filing Single with 0 deductions taken out, no 401K, health insurance, etc.
So you are making $4.76 per hour on a weekly payroll.
The average gas price for 87 Octane as stated before is $2.97 per gallon.
$4.76 - $2.97 = $1.79
$1.79 per hour is left of your hourly wage for food, entertainment, rent, utilities, daily expenses, etc.
To fill a 10.0 gallon tank that you use weekly for back and forth to work, school, running kids around, shopping, living, etc. you pay $29.70.
In order to pay for the tank of gas costing $29.70 you have to work 6.25 hours to earn $29.73 after tax.
Now imagine if your car only takes 93 Octane, your tank takes over 20 gallons a week to get you around or if you own a gas guzzler. Not fun.
Just wanted to do some math today, to get a better look at how the price of gas can affect our lifestyle. Rent is not cheap around Tampa, owning a home is nearly impossible and Condos are becoming the homes of the rich and famous for the most part.
Food prices are on the rise, entertainment is on the rise, even Wal-Mart’s prices have felt the fuel increase.
Amazing how big oil companies are showing huge profits but don’t maintain their own pipelines that have an overall effect on those profits.
As gas prices continue to rise, up comes the debate in the US Government about raising the minimum rate wage from the current $5.15 per hour.
Let’s take a look at the current minimum wage of $5.15 per hour and the average price of gas, as stated in the Tampa Tribune this morning August 8, 2006, of $2.97 per gallon for 87 Octane and see how much a person on minimum wage has to work to fill up their 10.0 gallon gas tank.
I used the website Payroll Calculator to find that of that $5.15 per hour we take home per hour in the State of Florida, using the zip code 33619, after taxes, is $4.76 per hour. That is with a tax status of filing Single with 0 deductions taken out, no 401K, health insurance, etc.
So you are making $4.76 per hour on a weekly payroll.
The average gas price for 87 Octane as stated before is $2.97 per gallon.
$4.76 - $2.97 = $1.79
$1.79 per hour is left of your hourly wage for food, entertainment, rent, utilities, daily expenses, etc.
To fill a 10.0 gallon tank that you use weekly for back and forth to work, school, running kids around, shopping, living, etc. you pay $29.70.
In order to pay for the tank of gas costing $29.70 you have to work 6.25 hours to earn $29.73 after tax.
Now imagine if your car only takes 93 Octane, your tank takes over 20 gallons a week to get you around or if you own a gas guzzler. Not fun.
Just wanted to do some math today, to get a better look at how the price of gas can affect our lifestyle. Rent is not cheap around Tampa, owning a home is nearly impossible and Condos are becoming the homes of the rich and famous for the most part.
Food prices are on the rise, entertainment is on the rise, even Wal-Mart’s prices have felt the fuel increase.
Amazing how big oil companies are showing huge profits but don’t maintain their own pipelines that have an overall effect on those profits.
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if you can only race me in a straight line then whats the point 
...91 SMF SCCA
...91 SMF SCCA
I see people out there spending money on the car to improve it … If you spend half that effort just working on your driving skills, making you and the car work together as a team, then you’ll go faster – period. To make the car go a second faster on the track takes a lot more energy and money than making yourself drive it one second faster.
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This is misleading. This will not apply to every hour you work. Most people do not burn a gallon of gas for every hour they work.
However, a family on minimum wage would have a tough time surviving.
Last edited by corey r.; 08-08-2006 at 07:11 AM.
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makes you wonder how some families even make it ... outlook very bleak
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if you can only race me in a straight line then whats the point ...91 SMF SCCA
...91 SMF SCCA
I see people out there spending money on the car to improve it … If you spend half that effort just working on your driving skills, making you and the car work together as a team, then you’ll go faster – period. To make the car go a second faster on the track takes a lot more energy and money than making yourself drive it one second faster.
– the late Tom Thrash SCCA Solo E Production
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Look back and you will see that I stated that in a week for getting around town for daily living they use 10.0 gallons of gas. So that number is then justified that of that 6.25 hours you only earn $1.79 to live on.
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if you can only race me in a straight line then whats the point ...91 SMF SCCA
...91 SMF SCCA
I see people out there spending money on the car to improve it … If you spend half that effort just working on your driving skills, making you and the car work together as a team, then you’ll go faster – period. To make the car go a second faster on the track takes a lot more energy and money than making yourself drive it one second faster.
– the late Tom Thrash SCCA Solo E Production
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Minimum wage is $6.40 in Florida and goes up every single year with inflation. I don't see how raising minimum wage is going to do anything to help with gas prices. Everything will just go up to compensate but we've already beaten this horse before.
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Well if you earn minimum wage you probly cant afford car insurance payments, let alone the price of fuel. Raising minimum wage only raises the prices of everything else. Its better to look for a higher paying job, than to let the gov. give you a raise.
If you can't afford gas, its time to use public transportation.
If you can't afford gas, its time to use public transportation.
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Most people dont work 6.25 hours in 2 weeks. (paycheck period). What does that come to at 80 hours a paycheck?
