Final answer:
The goal of the minimum wage is indeed to ensure workers can have a minimally adequate standard of living. However, the current federal minimum wage of $7.25 per hour is deemed too low to provide a reasonable standard of living, highlighting the need for a higher living wage.
Step-by-step explanation:
The statement that the goal of the minimum wage is to ensure workers a minimally adequate standard of living is true. The minimum wage acts as a price floor in the labor market, whereby it is illegal for employers to pay employees less than the specified hourly rate. This measure aims to protect low-income workers and ensure they can afford the basics for a decent life. In the case of the United States, the federal minimum wage as of mid-2009 was set to $7.25 per hour. However, this rate has been criticized for being too low to provide a reasonable standard of living, especially when a single-income family earning minimum wage falls below the federal poverty line. Advocates for a higher minimum wage argue that it could help lift people out of poverty and meet basic living costs.
The calculation that if you work 40 hours per week at $7.25 per hour for 50 weeks a year, your annual income would be $14,500, highlights the challenge faced by those on minimum wage. This income level is below the 2015 federal poverty line of $24,250 for a family of four. The situation underscores the argument for the federal government to raise the minimum wage to ensure that workers earn a living wage they can survive on, as the current minimum wage is insufficient for many Americans to cover basic expenses such as rent and to support a family.