AS a former Socialist, I have studied US labor conditions more extensively than most. I am aware not only of the wages, but of the working conditions of many early 20th century facts and the reforms that were brought about to improve the lives of the working class. Part of my journey away from the left came from the stark realization that, despite protests to the contrary, we are winning the war on poverty in America, and we're winning it rather decisively. In this article I intend to show how wages and working conditions have VASTLY improved for the American working class, and why any "reform" to improve the lives of the working class should revolve around educating said working class to their responsibilities rather than forcing employers to pay more of their gross earnings to pay these employees.

When making comparisons as to the wages and working conditions of today vs. 1900, I used figures obtained from the following source for 1900 (Link ), with the following condition understood:

A comparison of the cost of living today and the cost of living in 1900 is not readily available. On a national level the U.S. Bureau of Labor Statistics figures show that the cost of living in 1900 was approximately 5% or 1/20 of 1999’s cost. It is important to keep in mind however that a number of modern conveniences were impossible or difficult to obtain—examples would be televisions, automobiles, automatic washing machines, advanced medical care or even often sanitary food and water. Other conveniences were only known to the middle and upper classes such as piped hot water and bathtubs, central heating, electric light, telephones and large houses.

I would add to the comments, however, that a number of modern BENEFITS were not included in the 1900 wage scale, such as unemployment, sick pay, vacation, and medical insurance, and that the addition of many of these benefits for the majority of American employers cancels out the lack of amenities, at least.

In 1900's, living conditions were such that many of the urban poor lived in small, dark 2-3 room tenements that rented for $4-7 per month (note: 2-3 room does NOT mean 2-3 BEDROOM; a three room tenement would consist of a living area, kitchen and bedroom, in which families of 4-5 would often live). The average rent in slum districts was $8-10, heat and bath not included. Robert Hunter in "Tenement Conditions in Chicago" notes that: Toilets were either shared inside water closets, or two hole outhouses underneath the sidewalk or stairs. A bath cost 25 cents, or a laborer could visit the free public bath.

Using the 5% conversion figure, tenements would average out to $80-140 per month for the 2-3 room tenements, or $160-200 per month for rent in slum districts. While rents in these districts are currently substantially above that, it is important to note that in certain shared tenements, certain utilities are provided (at the very least, an indoor bath and toilet), and, in the case of rent per week motels (which average from $400-800 per month; the latter being the figure from the vastly overpriced community of Las Vegas), all utilities including basic cable are provided, as are basic furnishings. In the cities where the "norm" is closer to $800 a month, there are an abundance of soup kitchens and food banks as well as free clinics so that, for the very poor, at least, medical and food expenses are all but superfluous.

The average wage in 1900 varied greatly. Most workers worked 60 hours a weeks or longer, and wives and children often had to pitch in to earn income to support the family. Boarders were often taken in to supplement the household income as well. The paper cited above lists the following income figures for Illinois in 1900:

On the average, those Illinois families having income from the above sources earned annually from the: Working husband $620.19, Wife $114.43, Children $334.93, Boarders and lodgers $240.47, other sources $139.76. The overall average annual income for the average family of 4.91 persons was $756.63.

The average family, then, consisted of just under 5 people (as compared to about 4 people in 2005), and the average annual income was just over $750.

Enter 2005. The minimum wage is $5.15 an hour nationally, but even unskilled workers make more than that.  According to a tale I worked out at the Bureau of Labor Statistics (Link) the average wage for all workers in the US is $18.09 per hour. Assuming a 2 income household at 40 hours a week per wage earner, that amounts to an annual income of $72,360, or about $3618 in 1908 dollars

Now, I realize that when we are speaking of the poor, we are speaking of unskilled wage earners who are earning closer to the minimum wage. Using the same calculator but with different search criteria (Link ), I found  that kitchen workers in service occupations (pretty near the bottom of the wage scale) average $8.17 per hour, or $32,680 annual income for a 2 income/40 hour a week family (1634 in 1900 dollars).

But what about the VERY bottom of the barrel? Well, even if the best you can find is minimum wage, a 2 income family would still bring home $20,600 if both parents worked 40 hours a week($1030 in 1900 dollars). Even a single income family where one wage earner works 60 hours with no overtime would see a gross income of $15,540, or the equivalent of $777 (higher than the total earnings in 1900, with only one wage earner employed. They are also, as noted previously, eligible for unemployment benefits, worker's compensation, and other intangibles not even imagined in the world of 1900.

But even at the bottom of the scale, that's not all. You see, the hypothetical two wage earner family making $20,600 with one child, would receive $1,990 in Earned Income Credit (as well as possibly a small amount extra in the Additional credit per child), bumping their gross income up to $22,590. With two children, the EIC is $3,514, making the gross income $24,114. The hypothetical single wage earner family at 60 hours a week would receive $2662 in EIC benefits, bringing their annual gross income to $18,202. With two children, they would receive the maximum EIC of $4400, bringing their annual gross to $19,940. This does not even begin to factor in the fact that both hypothetical families are entitled to a number of benefits that would bring their income level up very close to the annual median income if they chose to receive them

We live in a country that has a number of problems, and those problems do need to be addressed. But the standard of living of America's poor is NOT among those problems. As economist Walter E. Williams has shown, if you finish high school, wait until you're married to have a child and STAY married and continually employed, you are almost guaranteed a reasonable standard of living in this country. The mythmakers among us, however, continue to advance the lie that we aren't doing enough.