The Minimum Wage Raise Made Me Poorer
I'm a single mother working in a school cafeteria. For the past few years, my wage was $12 an hour. It wasn't much, but it qualified me for critical government aid: my son had free health coverage through Medicaid, I received a housing subsidy (Section 8), and I got $400 a month in SNAP benefits. This safety net was what kept us afloat.
Last year, the school district raised our minimum wage to $16 an hour. I thought it was the best news ever. But soon, letters started arriving from various government agencies. My new income was now just over the eligibility threshold for every single benefit I had. I did the math: my pre-tax monthly pay increased by about $640, but I lost nearly $1,500 worth of housing, medical, and food assistance. I now have to pay a hefty premium for my son's health insurance.
I've fallen off the "benefits cliff." In exchange for a $4-an-hour raise, I am now poorer and more insecure than I was before. I find myself desperately praying my son doesn't get sick, because one trip to the emergency room could bankrupt me. I've even considered asking my boss to lower my wage back down, as absurd as that sounds.
#WageStories #MinimumWage
