Data shows many N.C. families cannot make ends meet

May 4—LENOIR — New data released by the NC Budget and Tax Center shows what it takes in 2022 for families in every county to pay for their basic needs. According to its formula, a family of four in Caldwell County needs to be earning $58,000 annually to make ends meet.

The 2022 Living Income Standard (LIS) updates a measurement that gives a more accurate and comprehensive picture of what it takes for a family to make ends meet in each of North Carolina's 100 counties. For example, the LIS shows that in North Carolina, a family of two adults and two children must earn on average $69,270 a year in order to actually afford housing, food, child care, health care, transportation, taxes, consumer debt, and other necessities. That's 2.5 times the federal poverty threshold for a family of four, which in 2022 is $27,750, according to HealthCare.gov.

The Economic Policy Institute reports that the federal minimum wage has not been raised since 2009. The federal minimum wage, the same in North Carolina, is $7.25/hour.

"It is absolutely well past the time to raise the federal minimum wage," said Patrick McHugh, research manager for NC Budget and Tax Center. "It is shockingly overdue, either at the federal or state level or both."

The NC Budget and Tax Center report also breaks the numbers down by county and family type. The same family of four living in Caldwell County would need to earn $57,910 a year to afford the basics, or $14 an hour per adult in the family. In order to earn LIS with the current minimum wage, both adults would have to work 77 hours a week.

"Even raising [the minimum wage] to $15 an hour would not help the communities in North Carolina," McHugh said. "In Caldwell County, if you had two adults working full time with two children, $15 an hour would deliver a living wage. I think that's the only family type that would ... The fight for $15 has become the sort of go-to standard, but even that wouldn't deliver a living income for most families."

Meanwhile, a Catawba County family of four would need to earn $59,230 a year, or $14.25 an hour per adult in the family. Both adults would have to work 79 hours a week at minimum wage in order to meet the LIS.

In Alexander County, a family of four would have to earn $59,850 a year to meet the LIS, or both adults would have to make $14.50 an hour. Right now, at minimum wage, both adults would have to work 79 hours a week to meet the LIS.

An Avery County family with two adults and two children would have to earn $63,390, or both adults would have to earn $15.25 an hour, to meet the LIS. Making only minimum wage, both adults would have to work 84 hours a week.

In Burke County, a family of four would need to make $59,320 a year, or $14.25 an hour per adult, to meet the LIS, or both adults would have to work 79 hours a week at minimum wage.

In Watauga County, a family of four would need to earn $64,120 a year, or $15.50 an hour per adult, to meet the LIS, or both adults would have to work 85 hours a week at minimum wage.

A Wilkes County family of four would need to make $62,550 a year, or $15.00 an hour per adult, in order to meet the LIS, or both adults would have to work 83 hours a week at minimum wage.

"Even in the most affordable counties in NC, it now takes at least 140 hours a week working at the minimum wage to make ends meet for a family of four," said McHugh. "It's a sign that our economy is rigged to benefit the wealthy that so many NC workers have to take on multiple jobs, and often debt, just to put food on the table and a roof over their family's heads."

Compare these numbers to counties with larger, more metropolitan areas:

In Mecklenburg County, where Charlotte is located, a family with two adults and two children would have to earn $19.00 hourly per adult to meet the LIS.

In Forsyth County, where Winston-Salem is located, a family of four would need to see both adults earning $15.50 an hour to meet the LIS.

In Guilford County, where Greensboro is located, in order to meet the LIS, both adults in a family of four would need to earn $16.25 an hour.

This year, the Budget and Tax Center added a new category to the list of basic needs included in the LIS: consumer debt. In families without extensive savings, paying for significant expenses like a new vehicle, appliances, and health emergencies often requires taking on consumer debt.

"Consumer debt is a fact of life for families who earn just enough to pay for their basic needs — or less," said Logan Rockefeller Harris, senior policy analyst. "People living at these income levels aren't being paid enough to save for a rainy day, and they often need to go into debt when something unexpected happens."

Raw data for the LIS comes from a variety of federal and state sources, predominantly official government surveys and data. The overall methodology of the LIS produces a very modest estimate of what people living in North Carolina need to meet their basic needs. For example, no allowance is given for any meals purchased outside of the home or eaten at a restaurant. Furthermore, food costs are based on the U.S. Department of Agriculture's "Thrifty Food Plan," which assumes that a family always buys bulk groceries, prepares every meal at home, never eats out, and seldom purchases meat.

By using conservative estimates, the LIS provides a basic budget for a very modest lifestyle with no financial cushion against family emergencies like illness or the loss of a job.

"This measure of the Living Income is enough to pay the bills on a month to month basis, but it's not really enough to create true economic security," said McHugh. "There are a lot of people who are surviving below the Living Income. We should not treat the LIS as the goal to aspire to; it's more like the floor for what families need to pay for basic needs, but it does not create economic stability or generational wealth."

The NC Budget and Tax Center is a non-partisan organization that works to document fiscal and economic conditions in communities to support the work of people, organizations, and government to advance solutions to poverty and pursue racial equity.

There is now an easy-to-use dashboard that allows North Carolinians to see their county data at a glance, as well as county and state data in downloadable tables.

Visit www.ncbudget.org/LIS to view the Living Income Standard for Caldwell County.