Home
/
RELIGION & LIBERTY ONLINE
/
How Four States Voted to Hurt Low-Skilled Workers
How Four States Voted to Hurt Low-Skilled Workers
Jan 16, 2026 2:07 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
The Trial of Jimmy Lai
Hong Kong’s biggest freedom fighter is about to stand trial. Here’s what you need to know. Read More… Jimmy Lai is no ordinary political protester. The 76-year-old Hong Kong entrepreneur and newspaper publisher has sat in solitary confinement in 35-pound handcuffs for more than 1,000 days as he prepares for the trial of his life. On one side are Lai and his defenders. On the other side is the Chinese Communist Party, preparing to keep Jimmy in prison for the...
Can the State Love God?
Philosopher Sebastian Morello makes the case for the political establishment of religion. Has the time e for conservatives to agree that this may be the only way out of our current moral morass? Read More… The 20th century was an outlier in the history of the human race. For the first time, secularizing movements spanned the globe. In many places, they succeeded by suppressing the political expression of religion. The great religions lost their capacity to direct culture and society....
Going My Way: An Enduring True Fairy Tale
The Oscar-winning Christmas classic, starring Bing Crosby, is a mainstay of holiday viewing, and for good reason—despite the sentimentality, it says much about our longing munity, justice, and fathers. Read More… Every Christmas, I try to write about Christmas movies, especially about old Hollywood, because the best directors at the time considered it worthwhile to make movies that would chastise and cheer up the nation, indeed remind people of the spirit of Christmas and thus try to fit Christianity into...
William Wilberforce: Abolitionist, Reformer, Evangelical
“God Almighty has set before me two great objects … the suppression of the slave trade and the reformation of manners.” Read More… On February 24, 1807, the House of Commons voted by 283 votes to 16 to end the trade in human slaves in all British territories. The e was testimony to the tenacity, zeal, mitment of the most prominent evangelical Member of Parliament at the end of the 18th century, William Wilberforce (1759–1833). It had been a long...
Cultural Christians and the Work of Remembering
Were Christians always stronger in their profession of the Faith than in their practice of it? plicated. Read More… Let me begin where I’ll also end: Nadya Williams’ latest book, Cultural Christians in the Early Church (Zondervan), is a masterful exercise in historical research, pelling portrait of early Christians who professed Jesus with their words but not with their actions. It’s also thoroughly enjoyable to read. Engaging in style and rich in human detail, it’s designed for a general audience,...
Javier Milei and the Promise of a New Argentina
The election of Argentina’s first libertarian holds much promise for economic reform and an end to the status quo that has wrecked Argentina’s economy, once one of the most robust in the world. But can the new president fulfill his promises, especially given the “caste” arrayed against him? Read More… Nothing guarantees that a country will remain prosperous forever. President Reagan stated that “we are never more than one generation away” from doing lasting damage to the primary institutions of...
Santa Claus vs. Artemis: A Christmas Story
We heartily await a new Christmas movie classic. Read More… As we deck the halls with boughs of holly this year, read the story of Christ’s Nativity, sing hymns and carols, exchange gifts, and light our homes in increasingly petition verging on mutually assured destruction with our neighbors, we must not lose sight of the real “reason for the season”: Santa’s victory over the pagan goddess Artemis. Really. Just to be clear, I am aware that Jesus is what Christmas...
The Quiet Revolution of Place
A new book offers concrete solutions to entrenched problems that have contributed to the fragmentation, isolation, and desolation munities across the country. Step one is to start right where you are. Read More… Sociologist Robert Nisbet declared our era to be “singularly weak” in social inventiveness. In a new book on local solutions to America’s social ills, author Seth Kaplan agrees—with some exceptions. “Our modern era is not the first one in which the U.S. has weathered rapid social change,”...
Machiavelli and the Invention of Modernity
A new book by legendary Harvard professor Harvey Mansfield takes up the challenge of furthering our understanding of Machiavelli’s “enterprise” and how it has shaped our world over the past half millennium. Read More… Harvey Mansfield recently retired from his position at Harvard University after a long and storied career. He’s almost an institution himself, well-known for hard grading, demanding teaching, a book on manliness long after such things were permissible, and superb translations of Tocqueville and Machiavelli. His retirement,...
The Holdovers and the Odor of Sanctity
Already winning pre-Oscar awards and gaining attention for its performances, The Holdovers proves to be both a throwback to an earlier era and a step forward for director Alexander Payne. Read More… When es to film genres, the kinds, the sorts, the categories of picture defined by certain conventions and characteristics, we’re all familiar with sci fi, the western, the detective crime drama, the war epic, edy (which includes mini-genres like , absurdist (think Airplane!), black (think Dr. Strangelove). Then...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved