The Widening Cracks: From Subminimum Wages to a Devalued Mainstream, Why So Many Can’t Make Ends Meet

The story of workers earning just a few dollars, or sometimes mere cents, per hour under a Depression-era federal program is jarring. Section 14(c) of the Fair Labor Standards Act allows employers to pay individuals with disabilities subminimum wages, ostensibly to encourage their employment. For some, like individuals in supportive communities, this arrangement, despite the incredibly low pay, offers a sense of purpose and belonging, often supplemented by other financial aid or family support. Yet, for many others, these programs represent a dead end, a place of exploitation where their labor is profoundly undervalued and opportunities for advancement or integration into competitive employment are non-existent. This debate over 14(c), with ongoing efforts by some administrations to phase it out and others to preserve it, is more than a niche policy argument; it’s a glaring spotlight on a much larger, systemic issue: the pervasive devaluation of human labor and the growing chasm between work and economic security.

The reality is, the devaluation extends far beyond those covered by the 14(c) program. It touches vast swathes of the workforce, including those often seen as part of the everyday economic fabric. Consider restaurant wait staff, who in states like Indiana operate under a tipped minimum wage of just $2.13 per hour. Their livelihood precariously balances on the generosity of customers, with employers able to count those tips towards fulfilling the already low federal minimum wage of $7.25. This system creates inherent instability and often leaves workers scrambling to earn enough to cover basic living costs.

Even the push for a $15 an hour wage, a figure that has become a rallying cry for fair pay and is more than double the federal minimum, frequently falls short of what’s needed. While a significant improvement, $15 an hour often doesn’t translate to a true “living wage,” particularly for families or those residing in many American cities, including here in Indianapolis. The struggle to make ends meet persists, revealing that even seemingly progressive wage benchmarks can be outpaced by the actual cost of living.

The MIT Living Wage Calculator provides a stark, data-driven perspective on this gap. This tool isn’t based on aspiration, but on the calculated costs of essentials: housing, food, childcare, transportation, healthcare, and other basic necessities. As of early 2025, for a single adult in the Indianapolis-Carmel-Anderson metro area, the living wage is estimated to be around $21.54 per hour. Statewide in Indiana, it’s approximately $20.81. These figures tower over the stagnant $7.25 federal minimum wage, a rate that now squarely positions a full-time worker below the federal poverty line for even a single individual. The calculator doesn’t just show a discrepancy; it quantifies the daily economic tightrope walked by millions.

This struggle is not confined to those in traditional employment. Even individuals relying on social safety nets find themselves ensnared by systems that seem to perpetuate financial precarity. Take, for instance, the experience of an individual receiving Supplemental Security Income (SSI) due to a disability. The resource limit to even qualify for SSI is a mere $2,000 for an individual. Should they live with a partner, as many do for mutual support and to share daunting living costs, SSI rules around “in-kind support and maintenance” can kick in. The assumption is that the partner provides some level of financial support, thus reducing the individual’s need. The consequence? A benefit that might already be modest can be slashed, leaving someone with a little over $1,000 a month to cover all their personal expenses – a sum that pales in comparison to any realistic measure of a living wage. This isn’t just an unfortunate calculation; it’s a systemic feature that can feel punitive, especially when trying to maintain essential human connections and stable housing.

The through-line from the subminimum wages paid under the 14(c) program to the broader struggles of workers earning more, yet still less than a living wage, and the personal realities of insufficient SSI benefits, is the persistent, systemic undervaluation of human potential and contribution.

The data from tools like the MIT Living Wage Calculator doesn’t lie; it starkly contrasts the $7.25 federal minimum wage, or even $15 an hour, with the nearly $21 an hour a single adult in Indianapolis needs just to cover basic necessities. This isn’t just an economic data point; it’s a reflection of societal choices that have tangible, often devastating, consequences for individuals and families.

When we consider the experiences of those with disabilities being paid pennies on the dollar, or individuals having their disability support reduced because of their living arrangements, it forces us to ask uncomfortable questions about who is truly valued in our economy and by our social support systems.

The conclusion is therefore not just that many people are struggling, but that this struggle is often a direct result of policies and accepted norms that systematically devalue certain lives and certain kinds of work. The challenge, then, is to move beyond acknowledging this reality to actively dismantling the structures that perpetuate it and advocating for a system where dignity and economic security are not scarce commodities, but fundamental rights.

Why are we willing to accept this? Who are we that we have allowed this to go on for decades and just accept it as a reality we can’t change?

But we can change this. We are not trapped. We must resist and fight back not only for ourselves, but for everyone else who is being taken advantage of.