Why Pasadena Needs a Minimum Wage
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Worsening economic circumstances for many <strong>Pasadena</strong>ns<br />
The 2008 – 2009 Great Recession took a toll on <strong>Pasadena</strong> households causing<br />
incomes to fall, so that by 2013, adjusted for inflation, the average income was no<br />
higher than in 2007. But the impact was more devastating for the poor. Between<br />
2007 and 2013, the percentage of households with incomes below $25,000<br />
jumped from 17.9% to 20.1%, while the percentage of households with incomes<br />
over $100,000 increased from 30.1% to 35.9%. The percentage in the middle<br />
range, between $25,000 and $100,000, fell from 52.1% to 44%.<br />
As a result, from 2007 and 2013 the number of poor households with incomes<br />
below $25,000 increased by 3,000. Over the same period, <strong>Pasadena</strong> added about<br />
3,000 households with incomes over $100,000. In between, the number of<br />
middle income group, $25,000 to $100,000, fell by 1,000 households.<br />
<strong>Pasadena</strong> household incomes 2007, 2013<br />
2007<br />
% Number<br />
2013<br />
% Number<br />
Households with 17.9 9,129 20.1 10,924<br />
incomes below $25,000<br />
Households with 52.1 26,617 44.0 23,942<br />
incomes $25,000 -<br />
$100,000<br />
Households with 30.1 15,387 35.9 19,486<br />
incomes over $100,000<br />
Total 100 51,133 100 54,352<br />
Source: American Community Survey<br />
In 2005, before the recession caused by the housing bubble and Wall Street’s<br />
reckless practices, 14.1% of <strong>Pasadena</strong> residents lived below the poverty line.<br />
Three years later, at the peak of the recession, <strong>Pasadena</strong>’s poverty rate rose to<br />
16.7%. But even after the recession ended, <strong>Pasadena</strong>’s economy did not recover,<br />
especially for the poor. In 2013, 16.3% of its residents lived in poverty, higher<br />
than the nation’s 15.8% poverty rate. Yet, during this same period, the percentage<br />
of households with incomes over $200,000 increased from 6% to more than 10%.<br />
Year % of Individuals Below Poverty Level<br />
2005 14.1<br />
2008 16.7<br />
2013 16.3<br />
Source: American Community Survey