Home
/
RELIGION & LIBERTY ONLINE
/
Sen. Warren: Why Isn’t the Minimum Wage $22 an Hour?
Sen. Warren: Why Isn’t the Minimum Wage $22 an Hour?
Jan 25, 2026 7:58 PM

In the United States we have approximately 314 million citizens. In the United States Senate, the upper house of our country’s bicameral legislature, there are exactly 100 senators. That means only 1 senator is selected for every 3.14 million people in the nation. Because two e from each state and the population is spread unevenly, the ratio of citizens to senators isn’t exact. Still, you’d think out of a pool of millions the chances are high that people selected for the Senate would have an above-average understanding of basic economics.

Sadly, that is not the case.

A prime example is Massachusetts Sen. Elizabeth Warren asking why the minimum wage is not $22 an hour.

Here’s Sen. Warren’s full question:

If we started in 1960, and we said that, as productivity goes up — that is, as workers are producing more — then the minimum wage is going to go up the same. And, if that were the case, the minimum wage today would be about $22 an hour. So, my question, Mr. Dube, is what happened to the other $14.75?

Let’s consider the implications of her question. If it is true that the lowest skilled workers should be earning $22 an hour, then the average hourly wage for U.S. workers should be somewhere $50 an hour. So what is the actual rate?

Along with a nice office, every senator is given a staff to help them with such matters as research. Sen. Warren didn’t even have to use Google, she could have just asked her legislative assistants. If she had simply asked them to check she would have discovered that as of last month the average hourly wage in the U.S. is $23.82.

Why is the actual wage only $1.82 more than the expected minimum wage? Is it that the average worker is only slightly more productive than the lowest skilled workers?

If you’ve taken a basic economics course (or just have mon sense), you’re probably saying to yourself, “Perhaps productivity and wages do not grow at a constant rate?” And you’d be right. As Erika Johnsen explains:

[S]hould the increase in crop yield from a farmer using a donkey and plow versus a farmer using a tractor be directly proportional to an increase in those crops’ market worth because of some sort of imagined moral law about productivity and wages? No, because the market value of those crops has diminished as the ease of production has increased, and if that was the way the world worked, we’d all be paying a heck of a lot more for food right now.

Sen. Warren makes two flaws in reasoning. The first is her assumption that increases in productivity should automatically lead to increases in the minimum wage. She assumes that one variable automatically (productivity) automatically affects a second variable (the minimum wage) at a constant rate. Ironically, her second flawed assumption takes just the opposite approach. She believes (based in part on a flawed economic study) that raising the minimum wage will not cause prices to rise, at least not significantly, and have no detrimental affect on employment.

Her assumption is that rather the passing the cost of higher wages on to the customer, employers will just take less profit. While this may be true of some employers—it could even be true for the majority of businesses—it may not be true for all businesses. What about the employer whose profit margins are already so narrow that any additional cost would eliminate her profits? Her only recourse would be to reduce cost, and since labor was the key cost increase, she’d likely have to lay off workers.

As I’ve written before, raising the minimum wage increases the wages of the few at the expense of the many. This is the basic economic principle of supply and demand applied to labor. Yet Warren puts her trust in one empirical study that tells her increasing the minimum wage won’t lead to increased unemployment (a study which economists admit is an outlier), rather than listening to what actual employers are telling her they will have to do.

Warren’s hubris is as astounding as her lack of economic understanding. But it is all mon among our legislators, who are more interested in passionate than in acting in a morally responsible and economically sound manner.

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
A Thanksgiving for the Harvest
Most gracious God, by whose knowledge the depths are broken up and the clouds drop down the dew: We yield thee hearty thanks and praise for the return of seed time and harvest, for the increase of the ground and the gathering in of its fruits, and for all other blessings of thy merciful providence bestowed upon this nation and people. And, we beseech thee, give us a just sense of these great mercies, such as may appear in our...
‘Bond Aid for Brussels’
In my opinion, those ing from the mouth of Declan Ganley were the most memorable from our distinguished speakers at yesterday’s conference “From Aid to Enterprise: Economic Liberty and Solutions to Poverty” in London. pared what European governments were doing in their attempts to deal with their sovereign debt problems with the attempts of rock stars to solve the problem of hunger in Africa with Live Aid back in the 1980s. It was just one of many precious ing from...
Rev. Robert A. Sirico at Georgetown Roundtable Discussion
The Berkley Center for Religion, Peace, & World Affairs at Georgetown University and the Governance Studies Program at The Brookings Institution have invited Rev. Robert A. Sirico, president and co-founder of the Acton Institute, to join a December 6 roundtable discussion in Washington on economics and Catholic Social Teaching. The event is free and open to the public. Friends of Acton in the Washington area are encouraged to attend the talk. Questions will be invited from the floor at the...
Another Amazing Grace: Wisdom & Wonder Book Launch in Grand Rapids
In preparation for this Saturday’s Grand Rapids book launch of Wisdom & Wonder, the latest translation from the Dutch theologian, journalist, and politician Abraham Kuyper,The Grand Rapids Press ran an excellent article in the religion section over the weekend. Press reporter Ann Byle did a great job explaining plexities of the content of Wisdom & Wonder: Common Grace in Science & Art and how that connects with the mon grace work that we are translating. We hope to have Volume...
Acton Commentary: OWS and the Lost Sheep
In this week’s Acton Commentary, I examine Jesus’s famous parable of the Lost Sheep in the context of the Occupy Wall Street movement. In the Gospel of Luke, Jesus tells the parable after some people grumble about him eating with “tax collectors and sinners.” Tax collectors at the time had a bad reputation of unfair business practices and government ties. Yet, Jesus tells the parable of a man who left ninety-nine sheep to find the one that went missing in...
Audio: Michael Matheson Miller on Real Solutions to Poverty
Acton’s Director of Media Michael Matheson Miller was in-studio this morning on The Tony Gates Show on WJRW Radio to talk about global poverty, PovertyCure, and his pleted trip to London to speak about those issues at an Acton conference. To listen to the interview, use the audio player below: [audio: ...
VIDEO: Margaret Thatcher Honored at Annual Dinner
Now up for your viewing pleasure, John O’Sullivan’s acceptance of our Faith & Freedom Award on behalf of Margaret Thatcher, and Rev. Robert Sirico’s remarks at the dinner. Mr. O’Sullivan, Lady Thatcher’s speechwriter and advisor, painted a warm, personal portrait of his former boss — at times he had us in stitches, and when he finished, we were all inspired. The dinner was given at the JW Marriott Hotel in Grand Rapids on October 20; if you couldn’t make it,...
A Person’s a Person, No Matter How Far
Glenn Barkan, retired dean of Aquinas College’s School of Arts and Sciences here in Grand Rapids, had a piece worth reading in the local paper over the weekend related the current trend (fad?) toward buying local. In “What’s the point of buying local?” Barkan cogently addresses three levels of the case for localism in a way that shows that the movement need not have the economic, environmental, or ethical high ground. At the economic level, Barkan asks, “Does the local...
Tony Blair, Actonite?
Greetings from London, which is only partially shut down today due to a public sector strike over the British government’s not-so-temporary austerity plan. The worst fears of extremely long delays at the airports and of possible violence have yet to materialize and let’s hope they never do. We’ll be holding the last of our Poverty and Development conferences here tomorrow on the theme “From Aid to Enterprise: Economic Liberty and Solutions to Poverty.” Our speakers will look at the (rare)...
True Philanthropy and Faith-Based Initiatives
Over at Patheos’ Black, White and Gray blog, where a group of Christian sociologists “share our observations and research and reflect on its meaning for Christian faith and practice,” Margarita A. Mooney writes about “Faith-Based Social Services: An Essential Part of American Civil Society.” Many of the points she raises echo the principles of passion that have long animated the Acton Institute’s engagement with welfare reform and social service. Be sure to check out the Hope Award program sponsored by...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved