Home
/
RELIGION & LIBERTY ONLINE
/
How Four States Voted to Hurt Low-Skilled Workers
How Four States Voted to Hurt Low-Skilled Workers
Feb 18, 2026 8:01 AM

Last night the election results revealed wins for Republicans in almost every state. But in four states where the GOP gained ground — Alaska, Arkansas, Nebraska, and South Dakota — the poor and unskilled suffered a loss.

In each of those states, voters passed ballot measures that will increase the government-mandated minimum wage. Beginning in 2015, the wage in South Dakota will increase to $8.50 an hour. In 2016, Alaska’s wage will be $9.75 an hour and $9 an hour in Nebraska. Arkansas will also raise the wage-floor to $8.50 an hour by 2017.

While the measures passionate — who doesn’t want hard-working people to receive more money? — the effect will be that each of those state will likely see unintended consequences of the action.

Here are four ways the increased minimum wages will hurt low-skilled workers:

1. Minimum wage laws will reduce the number of low-skilled jobs —even in states that didn’t raise the wage — In 1950, there were over 81,000 gas stations and only about200 self-service stations(almost all in California). Self-service stations weren’t popular until the two gas shortages in the 1970s (1973 and 1979) caused higher fuel prices that ledconsumers to look for pricing relief. Almost overnight, full-service stations became all but extinct—taking an entire sector of low-skilled jobs with it.

Rapidly increasing the minimum wage will have the same effect. A small group of employees will see their pay increase while many more would find their jobs pletely, never e back. Because most of the increases won’t occur for 2-3 years, employers have time to find alternatives to the increased cost. One of the most likely changes will be automation in the fast-food industry.

In Europe, McDonalds has ordered7,000 TIOSs (Touch Interface Ordering Systems)to take food orders and payment. In America, Panera Bread willreplace all of their cashierswith wage-free robots in all of their 1,800 nationwide locations by 2016. There is even a burger-making robot that can churn out360 gourmet hamburgers per hour. Increasing wages will encourage corporations to speed up the implementation of automated services. By the time the wages go into effect in Arkansas, there will likely be fewer fast-food jobs available.

But the corporations won’t just use the automation in states with high minimum wages; it’ll be more cost-effective to roll them out nationwide. So the unintended consequences in these four states will affect the labor market for the whole country.

2. Minimum wage laws don’t substantially affect poverty — Most people who support or oppose minimum wage laws and/or increases share mon objective — helping the working poor. Because both sides have noble intentions, the merits of the debate over minimum wage laws and minimum wage increases should be based on empirical evidence that it will actually help, rather than harm, the poor.

Ina piece for the National Center for Policy Analysis, David R. Henderson explains there are two myths about minimum wages and the poor:

Most workers earning at or close to the minimum wage are not the sole earners in a household and most of them are not in poor households. For those two reasons, raising the minimum wage is not a targeted way to help poor people.

Henderson notes that from 2003 to 2007, 28 states raised the minimum wage to a level higher than the federal minimum wage. Using this as a basis for study, San Diego State University economics professor Joseph J. Sabia and Cornell University economics professor Richard V. Burkhauser examined the effects this had on poverty levels in those states. The result shows that there was no difference in poverty levels in those states pared to states with lower minimum wages.

Further, they calculated the effects of a proposed increase in the federal minimum wage to $9.50 on workers then earning $5.70 (or 15 cents less than the minimum in March 2008) to $9.49. They concluded that increasing the minimum wage from $7.25 to $9.50 per hour “will be even more poorly targeted to the working poor than was the last federal increase from $5.15 to $7.25 per hour.”

3.The minimum wage redistributes wealth from the low-skilled poor to the more skilled working poor and middle class— Many supporters of minimum wage increases mistakenly believe that increases in wage rates are transfers of wealth from employers and investors to the workers. But as Anthony Davis explains, the money to pay for the increased wage e from at least one of four places: higher prices for consumers, lower returns to investors, lower prices to suppliers, or a reduced work-force. Empirical research has shown that the primary effect of minimum wage increases is reduced employment, which essentially transfers the wealth (in unearned wages) from the less skilled to the more skilled working poor and middle-class teenagers.

4. Minimum wage increases disproportionality affect African Americans —Employment among African American males between the ages of 16 and 24 isdisproportionately responsive to the minimum wage. A ten percent increase in the minimum wage would reduce employment by 2.5 percent for white males between the ages of 16 and 24, 1.2 percent for Hispanic males between the ages of 16 and 24, and 6.5 percent for African American males between the ages of 16 and 24. Professors Even and Macpherson estimate that in “the 21 states fully affected by the federal minimum wage increases in 2007, 2008, and 2009,” young African Americans lost more jobs as a result of minimum wage hikes than as a result of the macroeconomic consequences of the recession.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Are You Ready or Really Ready?
vs. Almost everyone has been critical of the government’s methods when es to disaster preparedness and response. We here at Acton also tend to be very focused on the importance of private enterprise when es to dealing with local problems. And so I present an interesting case study for your analysis: The Department of Homeland Security has created a website, www.ready.gov, that promises to be a resource for those facing an imminent natural disaster. The Federation of American Scientists has...
Wi-Fi in the Developing World
The Green Wifi Prototype One of the concerns with the “little green machine” (discussed previously here and here) has been the issue of Internet connectivity. Little enclaves of mini-networks just won’t cut puters need access to the global web. Word out of the tech world is now that a couple of innovators, Bruce Baikie andMarc Pomerleau, who are “veterans” of Sun Microsystems, working on a solar-powered wi-fi access nodes, “which consist of a small solar panel, a heavy-duty battery, and...
You Know the Old Joke
This story makes me think of an old joke. Stafford, TX has a population of 19,227 people and 51 churches. The city council is making noise about preventing any more churches from opening up because, as tax-exempt organizations, they are threatening the viability of the local government. My initial reaction: In one sense this is nothing new. Ever since the days of the Holy Roman Empire, church estates have been free from the taxes of civil government, and as monastic...
Another Book Trend
I’ve noted the recent rash of books roughly on the theme of the danger of theocracy. As though in (indirect) response, several books celebrating Christianity’s impact on Western civilization (and democracy) have appeared. There was Thomas Woods’ How the Catholic Church Built Western Civilization. Then there was Rodney Stark’s The Victory of Reason, about which others mented in this venue. Now there is Robert Royal’s The God that Did Not Fail: How Religion Built and Sustains the West. ...
‘The Almighty has His own purposes.’
This Sunday’s sermon at the church I visited was on Joshua 5:13-15: Now when Joshua was near Jericho, he looked up and saw a man standing in front of him with a drawn sword in his hand. Joshua went up to him and asked, “Are you for us or for our enemies?” “Neither,” he replied, “but mander of the army of the LORD I have e.” Then Joshua fell facedown to the ground in reverence, and asked him, “What message...
Lottery Talk
I pleted an interview that will air this Sunday on the Michigan Talk Network about state-run lotteries and Christian views on gambling for the “Michigan Gaming and Casino Show,” hosted by Ron Pritchard. The occasion was this piece I wrote awhile back, “Perpetuating Poverty: Lotteries Prey on the Poor.” For more, see also “Betting on Gambling is a Risky Wager” and “Gambling Hypocrisy.” You can check out the show live on the MLive talk radio feed here (click on “News...
Private vs. Public Schools
One of the flashpoints in school choice debates is the performance of public schools pared to private. A while back a Department of Education study drew attention by claiming that, when certain socio-economic factors were controlled, there wasn’t much of a difference between achievement by public and private school students. Those findings are now under fire from Harvard researchers Paul Petersen and Elena Llaudet, who use the same data but a different method—and claim that the Department of Education’s method...
Thar She Blows
Might these be the new “Cuisinarts of the sea”? This story, “Energy from the Restless Sea,” in today’s NYT examines the efforts of experimental inventors to find machines that excel in “harnessing the perpetual motion of the ocean and turning it into modity in high demand: energy.” There are a variety of designs and types of machines, so of course not all of them are a danger to chop up hapless fish. Watermill of Braine-le-Château, Belgium (12th century). Photograph taken...
Let’s Tend the Garden 2006, Vineyard Church, Boise ID
Let me lead in here by saying I’m not by nature an overly emotional or "pentecostal" guy (lowercase ‘p’), though I have known personally the transforming movement of God’s Holy Spirit in my life and the lives of others at particular times. Let me also say that I’ve been to dozens of environmental conferences over the past 15 years or so, and while I have usually learned a lot and developed some great relationships with others in this business, I...
Protestants and Natural Law, Part 8
To conclude this series, let’s recap what is meant by natural law by parsing the term. The “nature” referred to in natural law can mean different things, but I mean by it the divinely engrafted knowledge of morality in human reason and conscience, that which all human beings share by virtue of their creation in God’s image. Theologically speaking, I think this understanding of nature points back to our original creation in God’s image, but it also anticipates the fall...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved