Why there is the working poor and solutions. We recommend that you look at the table at the sub heading ‘Real life effects of cost of living’ first before reading the article ‘Why there is the working poor and solutions’ for a better understanding of the gravity of the problem.
Why is there the working poor?
The working poor is a group of people who are employed but can not afford the basics: Housing, Clothing, Food, Entertainment, Education, Healthcare, Energy and transportation.
So why do we have the working poor? Here are the reasons we will discuss in this article: Woman entering the work force, Social programs and Government tax, Credit system, Minimum wage and Cost of living. Each of those contributed to the working poor. We recommend reading : “Modern Feudalism vs Socialism vs Free Market Capitalism vs Community Capitalism”
Woman entering the work force
Wages use to be set by business using the supply and demand principle; this drove how much the employer will pay the employee. When woman entered the job market, the supply of workers doubled, but need for workers remained the same. This is where the whole system became broken and the wealth gap started to grow. Mostly because the leaders of the world never address the problem and updated the system, from Capitalism to Community Capitalism, instead they started to push Socialist Programs and Free market Capitalism, both historically known for Elites enslaving the population.
Social programs and Government tax
When ever a government adds a social program the government acts as the middle man, resulting in higher costs. Nothing is free the money comes from somewhere and normally it comes from you in the form of tax. When a government tax your income you have less money to spend, When the government tax business owners, they increase their profit margins so guess who is actually paying business tax? You. When governments increase sales tax or value added tax, it increases the cost of the products and serves Guess who is paying that? You. All the countries that offers free healthcare and free education, offers serves which is more expensive then it should be, and the average person is paying for it, reducing the money they have to spend on other things, and if your at the bottom, you become a member of the working poor.
Credit system and Cost of living
Credit allows serve providers and retailers to sell goods and serves at a higher price. Example: historically you could work as a waitron and pay your way thou collage, since the US government introduced student loans, it became to expense to work your way thou collage, because it became to expensive. This is true for everything which can be bought on credit. Increasing the cost of living.
Minimum wage and Cost of living
Inflation acquires every year and because of this the cost of living increase every single year. Yet minimum wage is not adjust according to real inflation every year. Slowly year by year new employees are more poor then the last. This mean year on year every new generation can spend less money, which means slowly year by year the nations total buying power decrease and as a result every year it becomes more difficult to start a new business, which results in a slow decrease in the amount of people making up the middleclass. The larger the middleclass the healthier the economy,
Real life effects of cost of living
This is a study done in South Africa from 2004 till 2023. Products and starting salaries are all taking from the same companies, and the same brands. South Africa has a massive wealth gap thus the perfect study.
R1742 Left to spend
Loaf of white bread
340ml/330ml Soft drink
Steak and Kidney Pie
1200watt electric loan mower
6lt Pressure cooker
15lt Twintub washing machine
R3 363 short fall
That is how the working poor came to be, as you can see from the study above, same company same position, same brands at the same retailers. Year on year the new lower level employees has less buying power, the reason being is that the profit made from the product sold is added to share payouts and senior management while very little is added to the low level enter positions.
The profit margins remain the same so the money coming in increase, but only a small amount of that increase is paid to new low level employees.
Working poor and solutions
So how do we fix the working poor? The easiest way to fix this is to fix the minimal wage, this however can result in a few businesses closing down and inflation. This is needed as the upper-class salaries must be frozen and lose value, while the lower class salaries increase to a acceptable level here are the steps which can be used:
Federal wide credit system
In order to sell a product on credit you must rent a license from the federal government, giving credit with out this license will be illegal and punishable by law. All credit providers must be on a national system, where they can see how much the client earns, how much debt they have, and if its legal to approve credit for this client. This gives control over the amount of debt people have and thus reduce defaults, and irresponsible borrowing and lending practice.
In our article ” Cashless Society: How to and Human rights laws ” we will discuss a possible way to reset all private debt state debt and federal debt to zero.
The federal government can not tax a citizen, only states can tax citizens. 10precent of state revenue goes to the federal government. The license to provide credit is paid to the federal government. The federal government can tax exports, imports, international money transfers and international business deals.
The sates can only apply a specific set of tax’s and citizens can not be held accountable if these tax’s are not paid, it is the responsibility of the employer and share trader to deduct it before paying the employee or share holder. This reduces the amount of tax collectors a state needs and thus saves the state money. This is capitalism not socialism, the running cost must remain low to increase the buying power of citizens and their standard of living.
Business tax is 100persent of turnover it is reduced when the business meets specific criteria.
The government does not pay educational fees or provide loans. The minimal wage system and business tax system deals with the payment of education. The state must have the right to limit how much a education establishment may charge per student, in order to prevent over charging.
The government does not provide medical aid or pay anyone’s medical fees. The minimal wage system and business tax system deals with the payment of medical aid. The state must have the right to limit how much a medical establishment may charge, how much a healthcare professional provider may charge, the cost of medication older then 10years from the provider, and medication older then 10yrs form the manufacture in order to prevent over charging.
Business Tax credits
Business tax is 100persent of turnover, the reason is simple business has to be forced to employee people and not AI. The idea that business can use AI and Tax can be used to pay citizens are really dumb. Why is it dumb, like most ideas that come from people acting out side of the area of expertise this idea like 15min cities has some serious issues. The business has to rent or buy the AI, this is a extra expense. The AI will need maintenance and upkeep. Raw materials cost money. Now you add tax to it to pay citizens and government running costs.
Your pay will be worth very little and everyone will be members of the working poor, many will work to live on the streets.
The spending power of the population will be very low, many business and Elites will go broke. Money makes money, the more money people have the more money a business will make from the population, the less spending power the population has the less money business will make.
If you suck at math and still do not get it ask yourself this, will children go to school if they will never work? How save do you think is a society of uneducated people are?
These are the proposed tax credits.
2% tax credit if the company deduct Tax, Medical aid, Pension, Unemployment/Pregnancy fund/retirement fund and paying it on behave of 100% of the employees. (2%)
7% tax credit if 5% or more of employees are young nursing moms working/students. (9%)
7% tax credit if 10% or more of employees are part time workers/students. (18%)
4% tax credit if 15% or more of employees are 40yrs or older. (22%)
4% tax credit if 20% or more of employees are married and the legal guardian of 3 children. (26%)
2% tax credit if the business donates 0.25% of monthly turnover over every month to the local government infrastructure fund. (28%)
1% tax credit if the business donates 0.12% of monthly turnover every month to the state government infrastructure fund. (29%)
1% tax credit if the business donates 0.12% of monthly turnover every month to the federal government infrastructure fund. (30%)
7% tax credit if the business donates 1% of monthly turnover every month to the local government law enforcement fund. (37%)
7% tax credit if business donates 2.75% of monthly turnover every month to a local state government approved grade 1 to grade 6 school. (44%)
7% tax credit if business donates 2% of monthly turnover every month to a local state government approved grade 7 to grade 9 school. (51%)
2% tax credit if business donates 0.12% of monthly turnover every month to a local healthcare provider.
2% tax credit if business donates 0.5% of monthly turnover every month to the federal defense fund. (55%)
2% tax credit if business donates 0.12% of monthly turnover every month to the state wildlife and forest conservation fund. (57%)
2% tax credit if business donates 0.13% of monthly turnover every month to federal disaster fund. (59%)
2% tax credit if business donates 0.2% of monthly turnover every month to federal research fund. (61%)
2% tax credit if business donates 0.1% of monthly turnover every month to local government fund. (63%)
2% tax credit if business donates 0.1% of monthly turnover every month to state government fund. (65%)
2% tax credit if business donates 0.1% of monthly turnover every month to federal government fund. (67%)
33% tax credit if business employees x amount of workers per turnover. X is determent by business type. This is to prevent AI causing job loses and a oppressive government as a result. (100%)
No electronic and transport maybe imported fully assembled, it must be assembled locally.
Import Tax punishment for countries who under pay citizens.
Import Tax punishment for countries who over use AI.
Excluding emergency, military, intelligence personal, part time workers/students and young nursing moms working/students.
The term employee is any person who works at a company, and own less then zero to 1% of that company.
Employees may only work 39hrs in a period of 7 days.
Employees may only work 6hrs and 30min a day.
Employees may not work overtime.
Employees must have one 24hrs off period, ever 7days.
Employees must have 30 paid leave days a year.
This will insure parents and guardians will have time for their family. This will increase job opportunities. Decrease crime over a 23year period. Decrease the divorce rate. Increase the hobbies market. Decrease single moms.
Minimal wage standard per state
The purpose of minimal wage in a capitalist society is to ensure that every single employee can afford the basics in life: Food, accommodation, medical care, children, clothing, energy, transportation and entertainment. The government pays for nothing. Business and personal income pays for everything. As soon as the government pays for something it becomes more expensive, because the government acts as a middle man, and innovation decrease because government has no competitors, which force it to do better to attract more customers. That is why capital societies are generally more develop and countries like China continually steals technology from the west.
If you can not afford food, accommodation, medical care, children, clothing, energy, transportation and entertainment; and you are employed you are a slave and many in the world today are slaves.
Young nursing moms working/students minimal wage: The follow criteria needs to be met to qualify as a young nursing moms working/students: (1) She has to be between the age of 16 and 22. (This increase the odds that she will have more then 1 child addressing the current western population crash problem, young moms tent to have genetically stronger off spring) (2) She has to have a limited term share guardian contract. (Mon/Dad/Sibling/Boyfriend/uncle/aunty looks after the child/children when she studies or work) or she must have a limited term shared care giver contract (Welfare/Childcare/Religions establishment looks after the child/children when she is studying or at work) or she must be married. (3) must have a grade 9 education.
The employer has to pay for a 10 square meter or lager accommodation for work and campus, travel costs to work and campus, electricity, water and the education cost. The employer decide which subjects are taken. The student can work either 3hrs a day for 6days a week and study 3hrs a day or work 12hrs a day for 6 days in a week over a 3month period and study for 3months. Minimal wage is 50% of standard wage.
Student minimal wage: The employer has to pay for a 10 square meter or lager accommodation for work and campus, travel costs to work and campus, electricity, water and the education cost. The employer decide which subjects are taken. The student can work either 3hrs a day for 6days a week and study 3hrs a day or work 12hrs a day for 6 days in a week over a 3month period and study for 3months. Minimal wage is 25% of standard wage. Student maybe married with children provided the other Guardian is employed with a Threshold minimal wage or higher. The student maybe a single guardian, if the child is place under a limited term share guardianship with another party or must have a limited term shared care giver contract with another party.
Standard minimal wage: Minimal wage is set every single year according to the cost of living in each state. A state official must get the following quotes each month in the state capital: The cost of 30 500gr loafs of bread or 10kg rice, the cost of 5kg sugar, the cost of 30lt of fresh full cream milk, the cost of 60 medium chicken eggs, the cost of 8kg potatoes, 4kg carrots, 4kg pumpkin, the cost of 30 avocado fruit, the cost of 60 tea bags, the cost of 3000lt of tap water, the cost of 890KWH of electricity, the cost of 26 by 20km trips in the city using a taxi, the cost of a single bedroom – bathroom -kitchen in the city, the cost of a single person medical aid per month, the cost of 1 pair of average adult male size socks ,the cost 1 pair closed average adult male size shoe, 1 average adult male size under pants, 1 pair of average size adult female bra, 1 average adult male size pants, 1 average adult male size shirt, 1 average adult male size jacket, 1 adult hat, 14 by 500 sheets toilet paper, 500ml shampoo, 250ml hair conditioner, 4 by 250gr soap bars, 750ml dish washing liquid, 750ml tile cleaner, 750ml all purpose cleaner, 2kg clothing washing powder, 2lt clothing conditioner, 1 lip stick, 1 eyeliner, tampons and 250ml deodorant, add monthly unemployment/pregnancy/retirement fund cost, add average retirement fund cost.
After 12 months add all the quotes together, add 10% for entertainment, add all state and federal tax.
At year end divide, the total of the quotes, the 10% entertainment and the tax by 2028 for the minimum wage for that coming year.
Single Guardian minimal wage: Double standard minimal wage plus the cost of 1 child in school for 12 months divided by 2028.
Threshold minimal wage: Five times standard minimal wage plus the cost of 3 children in school for 12 months divided by 2028.