While the federal minimum wage has stayed unchanged at $7.25 per hour since 2009, numerous states have steadily increased theirs.
In January, the minimum wage was raised in 23 states and Washington, D.C. Four additional states are expected to follow suit later this year. New hourly pay range from $9.95 in Montana to $16.10 in Washington, D.C., depending on the region.
"During periods of federal inaction, states began instituting their own, higher minimum wages," Ben Zipperer, an economist at the Economic Policy Institute, told CNBC. "So the longer the gap between federal minimum wage increases, the more likely some states went ahead and raised their own state-level minimum."
Yet, the vast majority of single persons working full-time and earning the local minimum wage are unable to make ends meet.
When it comes to how policymakers compute the cost of living, "you'll be amazed to see they're probably using house rents from 2012," said Suman Banerjee, associate professor of finance at Stevens Institute of Technology.
They're probably also utilizing out-of-date figures.
According to Banerjee, the issue is "mainly the lag factor" in assessing what is currently a suitable price for each component.
Big-picture economic theory also influences minimum-wage decisions. Some legislators believe it is critical to ensure that some people earn far more than they need in order to invest in projects such as business development.
In contrast, ensuring that some people are earning exactly what they need (or, in many situations, less than they need) means that they are continuously purchasing existing commodities and services.
Banerjee argues that when it comes to a guy who earns $1,000 a month, "if you give him $100, everything will be consumed" due to the fact that the individual must spend the entire amount to meet their basic necessities. "But if you give that same $100 to the guy who makes $10,000 a month, possibly that $100 will be saved."
Racism is also a factor.
Today, "you have several states with a long history of very cruel racism still opposing paying workers, disproportionately workers who are Black or Hispanic, higher wages," Zipperer said.
When it comes to Census Bureau data, keep in mind that "nonfamily household" does not just refer to single persons with no dependents. It also refers to unrelated and unmarried people who live together (like roommates).
"I think the crux of it is that low pay in this country is a very widespread problem," Zipperer added. There are numerous reasons why states will not raise their minimum wage accordingly, including those mentioned above. "The simple answer is, there are a lot of powerful people who don't want that to happen," he continued.
