WHEN FULL TIME ISN'T ENOUGH: The Decline of a Living Wage

As living costs outpace wages, the promise that hard work can provide financial stability feels increasingly out of reach for American workers.

By Ali Cabrera Osuna

The Advocate

If you went back in time and told someone from the 1990s how high costs would be today, they might think you belong in a psychiatric facility. The American dream is the idea that anyone can make it as long as they work hard. But what happens when hard work no longer pays enough to live? 

I believe that no matter what your role is at a job you should be able to cover the cost of living. Why should someone who worked 40 hours a week live on the brink of poverty? Why is it okay for people to have to work multiple jobs at once? A job used to pay enough to cover your bills and necessities while leaving you enough to invest in yourself, to splurge or to save. Today, most paychecks barely cover necessities, leaving you with very little, if any, to use for yourself.

Companies are hitting record annual profits while employees’ wages have stagnated as living costs inflate. In the 1950s and 60s, the prime era of the American dream, you could work almost any job and still afford essential goods, services and still have extra funds for additional purchases and savings. 

2.9 TIMES FASTER

U.S. productivity has grown 2.9 times as much as hourly pay since 1979, according to the Economic Policy Institute.

$16.80 PER HOUR

The minimum wage in the Portland metro area, effective July 1, 2026, according to the Oregon Bureau of Labor and Industries.

Today, the American dream seems to be just a dream. Most employers can afford to pay a liveable wage, but they look for the most they can get out of an employee for the lowest wage possible. The American dream started dying when we let the interests of rich corporations and billionaires overrun the average worker.

The Economic Policy Institute defines productivity as the income generated in an hour of work. The nonprofit, nonpartisan think tank organization found that national productivity grew 2.9 times faster  than hourly pay over recent decades. Meanwhile, the owners of these corporations keep getting richer and richer, living extravagant lifestyles while paying minimal taxes. These jobs are predatory, draining whatever they can from workers by demanding their absolute best while rewarding them with mediocrity.

 The Oregon Bureau of Labor & Industries states the standard minimum wage in the Portland Metro area is $16.80 per hour. The average per capita income in 2024 was $45,612, according to the U.S. Census Bureau. Yet the average cost of living in Oregon is roughly $50,000 per year. Expenses are so high that the majority, if not all, of a worker’s paycheck goes strictly to paying for utilities and housing. That’s not even touching on paying for healthcare or potential childcare expenses. 

“The American dream started dying when we let the interests of rich corporations and billionaires overrun the average worker.”

The United States needs laws to protect workers and their families. The American dream is declining, but that does not mean it cannot be saved. We must increase wages, especially the minimum wage. A review by the Economic Policy Institute showed that raising wages would not increase inflation and would help offset the gap between productivity and wages. Shouldn’t anyone who works 40 hours a week minimum wage be able to pay for housing, self-care, healthcare and to support their children, regardless of their job?