Home
/
RELIGION & LIBERTY ONLINE
/
How Four States Voted to Hurt Low-Skilled Workers
How Four States Voted to Hurt Low-Skilled Workers
Apr 15, 2026 4:50 PM

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
An invitation to an encounter
It was with great interest that I have been following exchanges related to the now well-discussed article that appeared in the Vatican associated journal La Civilta` Cattolica several weeks ago. Written by Fr. Antonio Spadaro, SJ and Rev. Marcel Figueroa, a Presbyterian minister, the former being the editor of La Civilta` Cattolica while the latter is the editor of the Argentine edition of the Holy See’s official newspaper, L’Osservatore Romano. In their essay, they outline in vigorous terms their concern...
Entry, exit, and supply curves: Increasing Costs
Note: This is post #44 in a weekly video series on basic microeconomics. As industry’s output increases, what happens to costs? Alex Tabarrok of Marginal Revolution University look at three options: an increasing cost industry, a constant cost industry, and a decreasing cost industry. (If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the...
How did business shape Jesus’s life?
“What life experiences would best prepare Jesus for his later public ministry,” ask Klaus Issler, “for his distinctive divine-human role as Messiah and Savior of the world?” We might think being born into a priest’s family would provide an excellent heritage for the Messiah, which was the life situation for Jesus’ cousin, John the Baptizer (Luke 1:5–17). Days could be devoted to studying Scripture, prayer and daily access to the temple precincts. Yet Jesus came into a layperson’s family, devoting...
Classical high school students say this attribute defines the West
Josh Herring teaches history at a secular, classical academy – but as with all teachers, sometimes he learns valuable lessons from his students. As high school students at theThales Academyprogress from studying ancient cultures to modernity, they invariably tell him they are struck by one principle that sets the Judeo-Christian West apart from previous civilizations. In a new essay for Religion & Liberty Transatlantic, Herringwrites: In ninth and tenth grades, students study the ancient and classical world. They track the...
Samuel Gregg on the Pope’s problematic view of Venezuela
In a new article for theWSJ, writer William McGurnwrites that while Pope Francis and the Vatican have stubbornly resisted speaking out against Venezuela’s regime, a recent uprising in Venezuela pushed the Vatican to finally admit “profound concern.” When the Pope and the Vatican criticize America however, ments seem much more incendiary. To explain the Pope’s attitude of inattention so far given to Venezuela’s regime, McGurn quotes Acton Institute’s Director of Research, Samuel Gregg:“Venezuela’s crisis doesn’t fit into Pope Francis’s standard...
The new political divide pits conservatives against liberals and populists
The election of 2016 highlighted how politically divided we are as a nation. But the dividing line may not be where we had assumed. For the past few decades the electorate has been viewed as divided almost equally between social and economic conservatives and social and economic liberals. But a recent study of voting patterns in the 2016 election reveals the old left-right divide is fractured and voters are clustered into four main groups. The first group prised of Liberals,...
Should Catholics support a ‘ruthless’ sin tax on demon rum?
A pastoral letter recently read in Catholic pulpits across Poland highlights the real and pressing problem of alcoholism. In it, the bishop called for plete suppression of alcohol advertising and for a significant price increase to reduce consumption. But there are strong reasons to believe its proposed policies could make matters worse, writes Marcin Rzegocki, who lives in Poland, inhis most recent essayfor Religion & Liberty Transatlantic. “The great responsibility of the state is not only to make wise and...
Brains and brawn: Does manual labor belong in the modern economy?
As economic prosperity continues to spread, and as the American pletes its transition into the age of information, manual labor is increasingly cast down in the popular imagination. When our youth navigate and graduate from high school, they receive a range of pressures to attend four-year colleges and pursue various “white-collar” careers, whether in finance or law or tech or the academy. Jobs that require physical labor, on the other hand, are not so high on the minds of parents,...
What old age teaches us about Christian vocation
We live in a society that is prone to an increasingly utilitarian and consumeristic way of thinking, a mindset that can quickly pollute our imaginations when es to work, vocation, and economics. For some, vocation and work are primarily about self-interest and status, a mechanism for gaining power, influence, and wealth that may, in turn, lead to other mutual value. Yet this is nowhere near the beginning or end of our role as Christians within the economic order. As human...
Solving for inefficiencies: Why a law firm is hiring social workers
Growing up on the east side of Michigan, I still remember the jingle for the law offices of Sam Bernstein. How could I not? mercials were everywhere and so were the faces of him and, later on, his children who joined the law firm. Turn on the TV or radio and you will quickly encounter a similar sort mercial for a law firm in your area. Search the web and you will find dozens of local firms. petition is fierce:...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved