Home
/
RELIGION & LIBERTY ONLINE
/
How Four States Voted to Hurt Low-Skilled Workers
How Four States Voted to Hurt Low-Skilled Workers
Mar 13, 2026 5:42 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
Verse of the Day
  Commentary on Today's Verse   Commentary on James 1:22-25   (Read James 1:22-25)   If we heard a sermon every day of the week, and an angel from heaven were the preacher, yet, if we rested in hearing only, it would never bring us to heaven. Mere hearers are self-deceivers; and self-deceit will be found the worst deceit at last. If we flatter...
Verse of the Day
  Commentary on Today's Verse   Commentary on Matthew 7:7-11   (Read Matthew 7:7-11)   Prayer is the appointed means for obtaining what we need. Pray; pray often; make a business of prayer, and be serious and earnest in it. Ask, as a beggar asks alms. Ask, as a traveller asks the way. Seek, as for a thing of value that we have lost;...
Verse of the Day
  1 Timothy 6:6-10 In-Context   4 they are conceited and understand nothing. They have an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions   5 and constant friction between people of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain.   6 But...
Verse of the Day
  Commentary on Today's Verse   Commentary on 1 Chronicles 16:1-6   (Read 1 Chronicles 16:1-6)   Though God's word and ordinances may be clouded and eclipsed for a time, they shall shine out of obscurity. This was but a tent, a humble dwelling, yet this was the tabernacle which David, in his psalms, often speaks of with so much affection. David showed himself...
Verse of the Day
  Commentary on Today's Verse   Commentary on Galatians 6:6-11   (Read Galatians 6:6-11)   Many excuse themselves from the work of religion, though they may make a show, and profess it. They may impose upon others, yet they deceive themselves if they think to impose upon God, who knows their hearts as well as actions; and as he cannot be deceived, so he...
Verse of the Day
  Commentary on Today's Verse   Commentary on Galatians 5:1-6   (Read Galatians 5:1-6)   Christ will not be the Saviour of any who will not own and rely upon him as their only Saviour. Let us take heed to the warnings and persuasions of the apostle to stedfastness in the doctrine and liberty of the gospel. All true Christians, being taught by the...
Verse of the Day
  Commentary on Today's Verse   Commentary on Jeremiah 2:9-13   (Read Jeremiah 2:9-13)   Before God punishes sinners, he pleads with them, to bring them to repentance. He pleads with us, what we should plead with ourselves. Be afraid to think of the wrath and curse which will be the portion of those who throw themselves out of God's grace and favour. Grace...
Verse of the Day
  Commentary on Today's Verse   Commentary on Romans 12:9-16   (Read Romans 12:9-16)   The professed love of Christians to each other should be sincere, free from deceit, and unmeaning and deceitful compliments. Depending on Divine grace, they must detest and dread all evil, and love and delight in whatever is kind and useful. We must not only do that which is good,...
Verse of the Day
  Commentary on Today's Verse   Commentary on Psalm 105:1-7   (Read Psalm 105:1-7)   Our devotion is here stirred up, that we may stir up ourselves to praise God. Seek his strength; that is, his grace; the strength of his Spirit to work in us that which is good, which we cannot do but by strength derived from him, for which he will...
Verse of the Day
  Commentary on Today's Verse   Commentary on Psalm 56:1-7   (Read Psalm 56:1-7)   Be merciful unto me, O God. This petition includes all the good for which we come to throne of grace. If we obtain mercy there, we need no more to make us happy. It implies likewise our best plea, not our merit, but God's mercy, his free, rich mercy....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved