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Sioux Falls, Pierre in Bottom Quartile for Minimum-Wage Purchasing Power

Governing maps the buying power of the minimum wage in 308 cities across the U.S. (South Dakota needs more big cities so we can get on maps like this!):

Source: Source: Governing calculations of cities' highest minimum wages and Council for Community and Economic Research's Cost of Living Index, 2013 annual average composite score.
Source: Governing calculations of cities' highest minimum wages and Council for Community and Economic Research's Cost of Living Index, 2013 annual average composite score. Click here for Governing's interactive map!

The darker the green, the more you can by with that minimum green in your pocket. Ranking cities from palest to darkest—i.e., from least buying power to most—Sioux Falls and Pierre, the only two towns in the survey, come out 75th and 48th, respectively. That means there are a lot more towns where it's easier to put food on the table with minimum wage than it is in South Dakota (relatively easier, that is, remembering that a living wage is more like $16.23).

By Governing's cost-of-living calculations, that $7.25 an hour stretches to $7.44 in our Queen City of the East but shrinks to $7.13 in the capital. Both beat the Twin Cities, where $7.25 acts more like about $6.60. But Mankato and St. Cloud offer better buying power for minimum wage-earners, boosting their base bucks to about $7.70.

Passing the minimum wage initiative on this year's ballot and raising our minimum wage to $8.50 an hour would skyrocket the buying power of the minimum wage in Sioux Falls to $8.72 and hour, placing Sioux Falls among the 30 cities with the highest minimum-wage purchasing power. Pierre at $8.36 would tie Kalamazoo, Michigan, and be in the top 50.

30 Comments

  1. Lynn G. 2014.03.28

    Moving out of the state is looking more attractive to me.

  2. John Tsitrian 2014.03.28

    Waiting for the official apologists to trash CCER's methodology--without bringing any peer-reviewed contra-data to refute it. For info, this firm's ACCRA data is used and published extensively by both private and public sector firms and institutions, including the U.S. Census Bureau. The myth that SD's low cost of living makes up for low wages is busted once again.

  3. Lynn G. 2014.03.28

    John it was one of the reasons I moved back to my home state. My perception and my expectations turned out to be wrong and that is my responsibility.

    When the government shutdown happened it affected me directly financially and in time spent and brought my interest into state politics. What I've found is disturbing to say the least and the past legislative session just added to it with the bills that were introduced or inaction on more pressing matters our state faces.

    I looked up the past legislative history of some of the more controversial legislators presently in office and was a little shocked at what they tried to pass into law while I lived out of state. It was pushing the limits of separation of Religion and state almost with the end goal of a Theocracy. Some bills introduced by those who claim to value liberty and freedom would actually limit the rights of others and discriminate. Economic development is a mess regarding priorities in advertising our very affordable workforce to put it politely.

    My perception of the past were that my local state representatives 20-30 years ago seemed very reasonable and I couldn't really tell the difference from those who were of the Democratic Party or Republican but maybe I was wrong or blind to what was actually going on. These were my neighbors. I shopped in their store or volunteered with them. I thought our state was different and somewhat insulated from national politics. Yeah sure there might someone on the fringe but most seemed pretty moderate. Maybe all of this changed in part due to the 24 hour news cycle and specialized political channels like Fox and MSNBC.

    The more I read in Madville or DWC and research the more concerned I get about the state I've always felt was "home." I turn on local radio stations while traveling across the state and 98% are syndicated right wing talk shows. What about balance? I sure don't want to just have left wing talk shows on the radio but choices where I can try to learn from both sides. It's depressing! I'm starting to think this is not my fight and life is too short. It would just be easier to start looking for another state to move to. The unhealthy politics and governing seem too embedded.

  4. John Tsitrian 2014.03.28

    You're entitled to your disenchantment, Lyn. I noted that in Governor Daugaard's campaign announcement in Rapid City a few days ago that he stressed workforce development as perhaps his highest priority if re-elected. He's on the right track, but I doubt that he'll have much success given the deplorable wages and lack of commitment to public education that he and the legislature have shown. Not sure how you pitch South Dakota to potential emigres as a great place to put down roots when you have to acknowledge that their kids will be taught by the lowest paid teachers in the United States in communities where mean and median wages are thousands of dollars a year lower than those in our bordering states.

  5. Winston 2014.03.28

    I was surprised that Daugaard even mentioned workforce development in his campaign kick-off. Wasn't that one of his great failures in his first term? How is he credible on this issue going forward? What will be stage II of his campaign platform "a new and improved GOED and EB5 program…"…?

  6. Nick Nemec 2014.03.28

    Workforce development, what a joke. If you need workers increase your wages and workers will beat a path to your door. It's called the law of supply and demand.

  7. Lanny V Stricherz 2014.03.28

    "My perception of the past were that my local state representatives 20-30 years ago seemed very reasonable and I couldn't really tell the difference from those who were of the Democratic Party or Republican but maybe I was wrong or blind to what was actually going on." Lynn, You wrote the above. You were not 30 years ago, nor are you today that far off the mark. That difference that you perceive is the fact that the country as a whole has moved so far to the right, that believe it or not, Jimmy Carter, Bill Clinton and Barak Obama have moved progressively further to the right than Richard Nixon. This has trickled down to the State level as well, to the point where all that one hears from the extreme right is cut taxes. There seems to be no social awareness or consciousness.

    You alluded to the right wing talk shows, (I would presume that you are talking about the syndicated variety.) But we have one right here in Sioux Falls that is not syndicated. It is the Rick Knobe show which is constantly beating on the issue of folks depending on the Federal government for way too much. That is so laughable that as one who has lived here most of my life, I cannot bear to listen to him anymore. He talks that game, but when he was Mayor of Sioux Falls, he was always at the front of the line at the Federal trough to get federal help for this and that project. He was so good at it, that Aberdeen then hired him after his terms here to be their economic development guy, because he knew all the buttons to push to get federal assistance. He also taught the City of Sioux Falls well, considering that we got 40 million dollars in federal highway money to move the railroad tracks and switching yard from downtown Sioux Falls. And even though after 8 or 9 years not a thing has been done to that end, several million of the dollars have been spent on this and that project to figure out how to do it.

  8. Nick Nemec 2014.03.28

    Lanny, at least the consultants are employed.

  9. caheidelberger Post author | 2014.03.28

    Lynn, should we buy a radio station and produce a broadcast version of the Madville Times?

  10. Wayne B. 2014.03.28

    I get the sense, John, that your first comment was leveled at me... I'm no official apologist for low SD wages, but misusing data is misusing data. If you need to put oil in your car, and all you have is gas, you imperil yourself to fill your oil reservoir with gas... and you know it's a dumb idea no matter if someone else is able to give you the oil you need or not.

    I'm not going to trash this, though - this is EXACTLY the type of analysis the ACCRA data is good for; comparing cities to cities.

    I'd be really curious to see what percent of the workforce in each city is actually earning minimum wage, and what percentage are below each state's "living wage".

  11. Lynn G. 2014.03.28

    Lanny I remember that. Knobe didn't last too long in Aberdeen. I didn't get the impression that his tenure was very successful. It was a high priced bust! That was during the old "Aberdeen The City Without Limits" promotion. A few of my friends used to joke about that and call Aberdeen Ampipe. That was a different time though with the farm economy in the tank and a great interest rate on a car was 16.9%. Those were tough days!

    Economically I feel a major reason why there is so much political apathy in this state is due to people are just trying to survive. Many working multiple jobs. It's so hard to find a decent paying job with wages being so low and finding one with good benefits is even more scarce.

    While working in a prior career here in SD years ago I would take credit apps and I was amazed at how my customers were able to raise the families they had with kids in school and all the activities with the little income they had. It was incredible and I did the best I could to look out for them.

  12. Lanny V Stricherz 2014.03.28

    Lynn, You are absolutely correct on both cases. I did not say that Knobe was successful in Aberdeen, but that is why he was hired, for his expertise in the area of federal assistance. I retired early at 62 because of exactly what you said, the lack of good paying jobs and I "thought" that I had enough money to make it to the end of my life without worrying about ever being a burden on anyone. 2008 kind of changed that, but I am still going to make it, just with less. I don't know how in the world young families can make it in Sioux Falls or South Dakota, if they are not professionals, even in this economy.

  13. Lynn G. 2014.03.28

    Cory buy a radio station? That industry has changed so much over the years and so many local announcers, newsman, sportscasters being real professionals that many of us grew up with have left the industry due to those changes. Then there is the question of revenue and advertising. It would probably be safer to do a web based program with less overhead.

    Yesterday I just finished driving across the state and it was a grind listening to the variety of very negative syndicated entertainment hyped right wing political talk shows. Many times it's entertainment oriented and not just factual. It seemed like that was all I could get. It would just be nice to get some balance in programing with less hype. I usually try to listen to South Dakota Public Radio.

  14. John Tsitrian 2014.03.28

    Yes, Wayne, I figured you needed a call out, haven't seen you here in a while. :-) As to personal income growing back to pre-recession levels, I'd be impressed if those pre-recession levels were something to write home about. In any event, that they grew faster in the Great Plains states only reflects the surge in farm commodity prices since then. Taking that big jump in farm income and spreading it out over a thinly populated general community does indeed make per capita income growth look pretty good.

  15. Tara Volesky 2014.03.28

    How about a syndicated talk show Cory. I bet there would be some stations that would be willing to hear another side. You have established a very credible blog site. You definitely have the talent and experience. If not, how about a podcast? It would be good for SD.

  16. Jenny 2014.03.28

    Trust me, Lynn - that is all you can get in the middle of SD - Rush Limbaugh, cattle and crop reports, twangy country music, and then a few really whacked religious right-wing Christian stations that are to the point of disturbing. I was listening to religious radio one time while making the dreadful drive back to my hometown in central SD and these Christian scientists were claiming that the earth really is only several thousand years old. Don't ask me why I even listened to it - I was that bored.

  17. Joan Brown 2014.03.28

    Cory your idea sounds good, but I would really like to see a radio station in Sioux Falls that plays GOOD, OLD TIME music, nothing newer than the 50s. It doesn't have to be all country, but a little bit of every thing. But I think that is a real big dream.

  18. Winston 2014.03.28

    You could call it "Radio Free South Dakota."

  19. Roger Cornelius 2014.03.28

    Today the Conn. legislature increased their minimum wage to $10.10 per hour.

  20. Nick Nemec 2014.03.28

    Wayne B. I have to agree with John on the wage growth. Look at the map, the entire Great Plains from Canada to Texas shows the highest level of wage growth. It's also the least populated and most agriculture dependent part of the country. Most of this growth is due to high ag prices and 2012 had some of the highest, extend this map to 2013 when commodity prices dropped by 1/3 and it wouldn't look quite as rosie.

  21. Wayne B. 2014.03.28

    I know Mr. Nemec. There's a lot to unpack! Just about every metro area is losing ground... more people, less wages per person. But if you're not in Ag in a rural county, how much you're benefiting as part of that increased wage per capita is questionable.

    I strongly believe if you want to pay peanuts, you get monkeys. But at the same time, even in Sioux Falls, the median household value is less than 3 times the median household income. In Minneapolis, it's 4.4 times the median household income. In California home prices far outstrip income by 8-10 times.

    But there are other things we pay the same or more for (food, vehicles, etc.). On the balance, I still think it's cheaper to live here, and a better place to raise a family (though not on my street - too much traffic). I think we give short shrift to our educators and that's a severe case of myopia, something I'm not liable to forget come election day.

  22. Deb Geelsdottir 2014.03.28

    Both houses of the MN legis have agreed to raise the minimum to $9.50. However, the bill has yet to get to the governor because they disagree on the COLA increases.

    On the other hand, look at Oregon! Yes indeed. I'm going in the right direction.

  23. G-Man 2014.03.28

    In the Beaver State, minimum wage is over $9.00/hour.

  24. G-Man 2014.03.28

    ...and as a single person, I'm living comfortably in Oregon.

  25. caheidelberger Post author | 2014.03.29

    Interesting point on wage growth and agriculture. How well do the increased earnings for farmers trickle out to the rest of the South Dakota economy?

  26. Lanny V Stricherz 2014.03.29

    Lost in all of the discussion, is the fact that there is also a little bit of greed. Some folks whose parents have worked their entire life to get what they have, work a full time job at decent pay, but then also take a part time job to get to where their folks are already, but to get their faster. With enough part time workers, the employer then does not have to hire full time workers and pay them benefits, like health insurance, vacation and holiday pay. The part time employees also make less per hour than the full time employees, which never has made sense since the employer does not have to pay benefits to the part time employee.

  27. John Tsitrian 2014.03.29

    Don't know, Cory, but capital intensive as farming is, I know it didn't get shelled out as wages. I do know that farm income in SD went from $3.2 billion in '10 to $4.6 billion in '12. I think the nature of farming means the lion's share of it probably went toward improving balance sheets, new equipment purchases and expanding operations. Probably doesn't circulate as freely through the economy as manufacturing and service sector income--which is probably why jobs reports from the Labor Dept specify non-farm employment data as the meaningful number with respect to the overall economy. I'm sure it's been studied and quantified.

  28. Lanny V Stricherz 2014.03.31

    Mr Kurtz, I have no idea who Mr Fleming is. I do however want to thank you for the link to this story. It is ironic, as I just watched the 1954 movie classic, "On The Waterfront," which of course is one of the first movies to depict the unions as nothing but thugs. This of course was the case in some of the unions, but by and large they were what brought the working people of this country into respectability and able to raise their families in a dignified manner and give their children a chance to have an education. Of course degredation and defamation of the union movement and socialism is what has allowed captialism to become the unconscionable, greedy way of life that it has become in the United States. So it is refreshing to see the organizing of the farm workers by Chavez, being brought to the screen. Hopefully it is not going to be destructive of what is left of the union movement.

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