Final answer:
An hourly wage is the amount an employee is paid for each hour of work. The U.S.'s minimum hourly wage is set at $7.25 since 2009, and discussions continue on the need for a living wage because families earning minimum wage often fall below the poverty line.
Step-by-step explanation:
An hourly wage is the rate of compensation an employee receives for each hour of work performed. For instance, in the U.S. labor market, the government sets a minimum wage, which is a type of price floor, making it illegal for employers to pay workers less than the designated hourly rate. Since mid-2009, this rate has been $7.25 per hour. Discussions about living wages arise from the argument that the federally mandated minimum wage does not meet the basic standards of living, especially when considering a family's income versus the poverty line.
There is a debate about hourly wages' adequacy given that a family with two adults earning the federal minimum wage may have an annual income below the poverty line. The calculation shows that working 40 hours a week for 50 weeks at $7.25 per hour results in $14,500 yearly, which is lower than the poverty threshold for a family of four, which was $26,500 in 2021.