Base pay, sure. If they're calculating in BAS/BAH, then 40k isn't far off.

If it were a true apples-to-apples like some fresh out of high school retail worker making 23k was going up against our hypothetical E-1 buddy to rent an apartment off-base (highly improbable that an E-1 ends up off-base but let's just play the game here), the E-1 is going to all of the sudden have a whole lot of tax-free BAH money to pay rent where the civilian can go kick rocks.

What is your amount for a "living wage" when the following are provided:

1.) Housing (Either housing on base or tax-free Basic Allowance for Housing (BAH))

2.) Food (Either on-base food or tax-free Basic Allowance for Subsistence (BAS))

3.) Healthcare (100% coverage free of charge)

4.) GI Bill

5.) Pension plan