Home
/
RELIGION & LIBERTY ONLINE
/
How Four States Voted to Hurt Low-Skilled Workers
How Four States Voted to Hurt Low-Skilled Workers
Feb 19, 2026 9:42 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
Drawing Attention To God’s Thumbprint In The World
Every artist, whatever the medium, is a pale example of our Creator God, and the best artists know that. James Lee Burke, whose novels are full of violence and glimpses of evil, seems to be an unlikely candidate for drawing attention to “God’s thumbprint” in our world, but he consciously does just that. In an interview with PBS’s Religion & Ethics Newsweekly, Burke talks about how religion (specifically his Catholic faith) plays a role in his writing. His primary character...
The Evangelical Work Ethic
Forget Max Weber and his Protestant work ethic, says Greg Forster. We don’t need social science to know that God cares about our work: Nothing shows the difficulty of understanding the relationship between work and faith more than our continued insistence on framing this issue as a debate over Max Weber’s long-discredited theory of the Protestant work ethic. Weber argued that Protestants value work because they think prosperity is proof that you’re saved; as anyone who knows anything about church...
DeMint on Changing Washington’s Political Culture
There’s a fascinating profile of Jim DeMint, the new president of the Heritage Foundation, in BusinessWeek, which makes a good pairing for this NYT piece that focuses on the GOP’s “civil war” between establishment Republicans and Tea Partiers. But one of ments that really stuck out to me concerning DeMint’s move from the Senate to a think tank was his realization about what it would take to change the political culture in Washington. As Joshua Green writes, DeMint had previously...
Oliver O’Donovan in Conversation
Earlier this month, Christian’s Library Press co-sponsored a discussion between Ken Myers, Matthew Lee Anderson, and British moral philosopher Oliver O’Donovan. Held a few blocks from the Capitol building in Washington, D.C., the conversation addressed questions and themes of political theology and was loosely centered around O’Donovan’s 1996 book The Desire of the Nations. Click here to listen to an audio of the conversation on the website of Mars Hill Audio Journal. ...
Stan Druckenmiller on Intergenerational Theft
In a recent interview in the Wall Street Journal, billionaire Stan Druckenmiller discusses his recent university tour sounding the alarm on intergenerational theft. The article paraphrases his case: [W]hile today’s 65-year-olds will receive on average net lifetime benefits of $327,400, children born now will suffer net lifetime losses of $420,600 as they struggle to pay the bills of aging Americans. It goes on: When the former money manager visited Stanford University, the audience included older folks as well as students....
‘A Flight From Human Intimacy’
Japan is a nation going under, demographically speaking. It is estimated that Japan will lose 10 million people in population over the next ten years. Like many nations, Japan is not having babies fast enough to keep its population stable. One reason: what the Japanese are calling “sekkusu shinai shokogun, or ‘celibacy syndrome.'” Young people don’t want to date, be intimate, get married, have sex. There are pelling reasons for this. The first is the Japanese culture’s saturation in social...
Human Trafficking Enters A New Marketplace: Organ Harvesting
There have been whispers of it before, but now it has been confirmed: trafficking humans in order to harvest organs. The Telegraph is reporting that an underage Somali girl was smuggled into Britain with the intent of harvesting her organs for those desperately waiting for transplants. Child protection charities warned last night that criminal gangs were attempting to exploit the demand for organ transplants in Britain. Bharti Patel, the chief executive of Ecpat UK, the child protection charity, said: “Traffickers...
Entrepreneurs, the Working Class, and the Mosaic of Culture
In an essay for AEI’s The American, Henry Olsen does a deep dive on the white working class, a group that Republicans have won by significant margins in recent years. (HT) Yet upon reviewing evidence in a new book by Andrew Levison, The White Working Class Today: Who They Are, How They Think, and How Progressives Can Regain Their Support, Olsen concludes that “conservatives, not progressives, are the ones in need of an electoral strategy to capture this key segment...
Making The Family Farm Profitable
There is much nostalgia about America’s agricultural past that many seem incapable of releasing. But the reality is forcing a new narrative about the family farm. In an era of globalization and government subsidizing large agribusinesses, family farmers have no choice in the near future but to diversify the use of their land and do something that is actually profitable. In the light of these realities, family farming is slowly ing more of a hobby than a means of making...
License For Evil
No, that’s not the name of a new James Bond movie. Rather, it’s a Public Discourse post by Anthony Esolen that discusses society’s ability (and disability) to get a handle on evil actions and morality. The cry, “You can’t legislate morality” is, of course, false. That is exactly what law does, as Esolen points out. All laws bear some relation, however distant, to a moral evaluation of good and bad. We cannot escape making moral distinctions. One man’s theft is...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved