Home
/
RELIGION & LIBERTY ONLINE
/
Minimum wage, minimum liberty
Minimum wage, minimum liberty
Jan 12, 2026 7:17 PM

Taking their cue from Seattle, cities and states are implementing minimum wage increases all over the country. Late last year, voters in Washington approved an increase in the statewide minimum wage that will raise it to $13.50 per hour by 2020. Three other states have also approved increases, including the typically conservative Arizona, where by 2020 the minimum wage will increase to $12 per hour.

Yet such policies rely on a fundamental abridgment of employer and employee freedom, leading to an abridgment of opportunity, in turn.

In a new study published by the National Bureau of Economic Research, we see a strong affirmation of that general principle. Commissioned by the city of Seattle to gauge the effects of the city’s progressive minimum wage increases, the study concludes that for low-wage and entry-level workers the costs of the hike outweigh the benefits by a factor of three to one.

The results seem to confirm what conservative economists have long said about artificial minimum wage hikes. Namely, that the group who is supposed to benefit most — those on the low end of the wage spectrum — end up instead with lower wages or lost jobs. But while the paper may not prove this conclusively, it’s likely to have an impact not only on Seattle, but on other states and cities considering proposed increases to the minimum.

The new research seems to conflict with some past studies on the effects of the minimum wage on employment rates. One such study, published in 1994 by David Card and Alan B. Krueger in The American Economic pared employment changes in fast-food restaurants between New Jersey and Pennsylvania while New Jersey enacted an increase. Card and Krueger concluded that particular hike, from $4.25 to $5.05 (almost 19%), had no negative effect on employment rates.

However, according to Max Ehrenfreund, the new study finds different results by broadening the scope of the data. “Economists might not readily dismiss the new study as an outlier, however,” Ehrenfreund writes. “The paper published Monday makes use of more detailed data than havebeen available in past research, drawing on state records of wages and hours for individual employees.”

As the Washington Post reported: “The paper is likely to upend a debate that has continued among economists, politicians, businesses and labor organizers for decades. In particular, the results could exacerbatedivisions among Democrats, who are seekingan economic agenda to counter President Trump’s pitches forprotectionism, reduced taxes and restrictions on immigration.” For more details on the study, see Joe Carter summary and Dylan mentary.

What these states and cities will ultimately realize is that employers wanting to stay in business only have three options when faced with mandatory minimum wage laws. Either they (1) freeze hiring, causing employment rates to drop; (2) hire employees with higher skill sets, marginalizing teens and entry-level workers from the job market; or (3) increase prices, passing along the costs to the market.

This diminishes freedom from the other end, too, limiting the range of options that are available for the very employees it’s supposed to help. If my retail job in high school had paid $15 an hour, I would have been priced out of the market by someone older and more responsible, with more skills and knowledge. I would have lost that opportunity to learn how to e a bit more responsible myself, all because prices were not allowed to serve as a signal of actual preferences in free and open exchange

Ultimately, aside from its pragmatic effects the most frightening effect of a state-mandated minimum wage is the abridgment of individual liberty it inevitably entails. After all, if I’m willing to work for $10 an hour and the government says that would be illegal, they have essentially taken away my liberty to negotiate for myself.

When the state, which exists to protect the rights of individuals, es an agent that inhibits personal liberty, we shouldn’t be surprised that the most vulnerable among us will be the ones who suffer the most.

Image: Fibonacci Blue,Strike and a protest march for a $15 minimum wage in Dinkytown, Color,CC BY 2.0

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
Apply today for a 2018 internship at Acton
A 2016 NACE Center report on millennial hiring indicated that internships help 81.1 percent of graduates “shift their career directions either slightly or significantly.” At Acton, we place an emphasis on assisting young men and women to discover their vocational calling through internships. The holiday season may have just ended, but we already find ourselves anticipating the energy and enthusiasm that 18 young leaders will bring to the Acton office this summer. In addition, we have re-branded the Acton summer...
Radio Free Acton: Jennifer Roback Morse on family breakdown and the economy; Upstream on Darkest Hour
On this episode of Radio Free Acton, Trey Dimsdale, Director of Program Outreach at Acton, speaks with Jennifer Roback Morse, founder of the Ruth Institute, about her ing Acton Lecture Series talk on family breakdown and the economy. Then, on the Upstream segment, Bruce Edward Walker talks to Acton’s Patrick Oetting on the new film Darkest Hour. Check out these additional resources on this week’s podcast topics: Register here to attend Acton’s Lecture Series event on January 25, featuring Jennifer...
Explainer: What you should know about a government shutdown
Why is there talk about a government shutdown? In December Congress passed the Further Additional Continuing Appropriations Act, 2018 (H.R. 1370) which provides non-discretionary funding through January 19, 2018. Because that Act expires at midnight on Friday, Congress must pass a new continuing appropriations act to keep the government operating. Democrats in Congress are insisting that any new stop-gap spending measure to keep the government funded must include a legislative fix on the Deferred Action for Childhood Arrivals (DACA) act....
Economic problems are not driving opioid overdose deaths
The opioid epidemic has e one of the deadliest drug crises in American history. In 2015, more peopledied from drug overdosesthan in any year on record, and the majority of drug overdose deaths—more than six out of ten—involved an opioid. A study of emergency rooms in the U.S. also found that since 1999, the number of overdose deaths involving opioids (including prescription opioid pain relievers and heroin) nearly quadrupled. Altogether nearly half a million people died from drug overdoses in...
The 2 things that can help Africans prosper
For too long, the West’s policy toward Africa could be summed up in two words: foreign aid. Somehow, temporary funds transfers – many of which never reach their recipient country and end up in the pockets of well-connected Western professionals – would solve structural development issues. MIT economist Daron Acemoglu once derided some foreign aid plans as “get-rich-quick schemes.” Those developmental policies, like Ponzi schemes, hurt the would-be beneficiary. “Even as the level of foreign aid into Africa soared through...
The 3 reasons Martin Luther King Jr. rejected Communism
Today is Martin Luther King Jr. Day in the United States, but the civil rights leader is a figure of worldwide significance. He learned the principles of non-violence from those resisting the British empire, received the Nobel Peace Prize in Stockholm, and is one of the “twentieth century martyrs” whose statue sits atop the great west door of Westminster Cathedral (alongside Maximilian Kolbe, Dietrich Bonhoeffer, and others). And 50 years after his death, his moral crusade for equal treatment under...
Macron’s Orwellian fake news fix
“On January 3, during his first press event of the new year, French President Emmanuel Macron presented a proposal intended to ‘protect the democratic life’ of France from ‘fake news,’” writes Marcin Rzegocki in this week’s Acton Commentary. Macron would make it “possible for judges to remove fake news stories, delete the links to them, block the sites, or close the offending users’ accounts.” The French president is not alone with his ideas to limit foreign information in his country....
Why government is not just a necessary evil
In the Federalist Papers James Madison claimed that, “If men were angels, no government would be necessary.” But is that true? James R. Rogers, an associate professor of political science at Texas A&M University, explains why some form of government would be necessary even if man were still in a prelapsarian state of nature: [E]ven without the Fall, there would be a role for civil government for the duly recognized person who exercises civil authority. Even in an unfallen society,...
Asymmetric information and used cars
Note: This is post #64 in a weekly video series on basic microeconomics. Adverse selection occurs when an offer conveys negative information about what is being offered. For example, in the market for used cars, sellers have more information about the car’s quality than buyers. This leads to the death spiral of the market, and market failure, explains Marginal Revolution University. However, the market has developed solutions such as warrantees, guarantees, branding, and inspections to offset information asymmetry. (If you...
The euro, Brussels, and the Russian bear
The government of Poland is part of the new surge of populism, openly defying the European Union on numerous policy fronts and rebuffing calls for an “ever-closer union.” So, why did its prime minister recently raise the possibility of adopting the euro? What is happening, and how should people of faith think about a single European currency? Are there moral issues at stake? “Adoption of mon euro currency should be understood first and foremost as politics, and only then as...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved