The images in this post are included for the purpose of commentary and critique under Fair Use laws and practices.
Have you ever encountered an argument so flawed in both premises and conclusions it stops you in your tracks? If so, you’ll know how I felt yesterday when I came across promotional content disguised as an infograph in Business Insider. The content comes from InvestmentZen and though there is no disclaimer marking this as paid content, Business Insider would have terrible business sense not to charge for the obvious plug.
The content includes ten tips on how to build wealth while living hand to mouth, and a much higher number of ridiculous assumptions. Today I only want to focus on the first step, and how it might work for different populations. The intro image “How You Can Build Wealth On Minimum Wage” has some funny math to start with.
It presumes a minimum wage employee works an even 2,000 hours a year, or 40 hours a week with a two week vacation. But many low paying employers keep workers part time in order to not pay for earned benefits. Working two part time jobs 25 hours a week, or one job 29, is more common.
The funny math continues with the assumption that state and local income taxes, and other municipal taxes that pay for stadiums and transit systems, don’t exist. Federal taxes of $385 are the only ones included, which is how they can claim a minimum wage take home pay of $14,115.