This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Part 1: Why Do Most People Earn Low Incomes?
As I was writing the article, 70% of American Households Earn Less Than 100k, the following question arose: Why do most people earn low incomes?
5% of people earn more than 240k, and 1% earn more than 600k. The other 95% of people are at the bottom of the chart. But then are people (usually minorities) who are at the bottom of the bottom of the chart. Why is the disparity so significant?
These are loaded questions that can’t be tackled with a single or simple answer. And as I started to conduct more research, the statistics that could lead to an intelligent response kept growing more unsettling.
When Is The Last Time You Got A Raise?
Before we dive into some of the numbers, I’d like to ask you, the reader, when was the last time you got a raise, and how much did you receive?
For so many Americans, the answer is too long ago and not enough. Last year, the Brookings Institution took a deep look at pay across the U.S., and found that almost half of workers – 44% – earn low wages. Almost a third of low-wage workers were below 150% of the federal poverty level. The median pay among low-wage workers was around $10.22/hr. And when wages stay the same, they’re not really staying the same. Factoring in inflation, workers are getting paid less and less every year. It’s not enough to live on.
(Source: Whizy Kim, Refinery29: Work and Money)
Humans often settle. We stick with the status quota often. Why? It’s easier. It’s easier not to go against the grain and for more.
Security & Comfort Are Blinders
Though most Americans are still financially struggling with their five figures, when you’re working in tech, white-collar jobs, or high-end blue-collar jobs, you tend to have two things: security and comfort. You know that the next check will help you pay you minimum payment on your student loan, credit card, mortgage, and car note.
If you get too comfortable, you often forget you can earn way more than you do currently. Being comfortable makes us lazy.
But our cushy jobs also cause something else; we tend to be oblivious or ignore the situations of others less fortunate than us. We’re selfish by nature, so we tend to focus on our situation. Our eyes only usually widen when we see a loved one or someone we care about fall into poverty or financial struggle.
~50% Of The Workforce Barely Earns A Living Wage
Low-wage workers comprise a substantial share of the workforce. More than 53 million people, or 44% of all workers ages 18 to 64 in the United States, earn low hourly wages. More than half (56%) are in their prime working years of 25–50, and this age group is also the most likely to be raising children (43%).
They are concentrated in a relatively small number of occupations, and many face economic hardship and difficult roads to higher-paying jobs. Slightly more than half are the sole earners in their families or make major contributions to family income. Nearly one-third live below 150% of the federal poverty line (about $36,000 for a family of four), and almost half have a high school diploma or less.
(Source: Whizy Kim, Refinery29: Work and Money)
3 Reasons this might be the case:
Lack of education.
Socioeconomic status in childhood.
The growing wealth gap between minorities and non-minorities.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.