Home
/
RELIGION & LIBERTY ONLINE
/
Why a ‘Living Wage’ Can Hurt the Poor
Why a ‘Living Wage’ Can Hurt the Poor
Dec 6, 2025 12:22 AM

Near the top of my long and ever-growing list of pet peeves is articles titled, “The Conservative Case for [Insert Proposal Usually Rejected by Conservatives Here].” It’s almost an iron-clad rule that before you even read the article you can be assured of that the case being made will use words that appeal to conservatives while being based on principles that are contrary to conservatism and/or reality.

Take, for example, a recent op-ed in the New Statesman by British Conservative Party politician Guy Opperman titled, “The Conservative case for a living wage.” In his opening paragraph he writes,

As a Conservative MP, I believe that lower taxes stimulate growth and jobs, that smaller government is invariably better government and that governments must “ensure that work always pays” by making sure those in work are better off than those on benefits. I also believe in hard work. Yet, for too many people in our society, a hard day’s work no longer means a fair day’s pay.

This sounds reasonable enough in theory. But when formulating public policy we have to have to use more precise terms. For instance, what do the phrases “hard work” and a “fair day’s pay” mean when es to determining a living wage? Does the difficulty of work automatically mean that the work is deserving of a set level of pay?

Opperman seems to believe that if a person is working a full-time job, that they are thereby entitled – regardless of the work they are doing – to receive a living wage:

Britain is a country in which some workers earn so little that the government has to step in and provide aid. That is the system of tax credits we have; a subsidy by any other name and a £4bn one at that. How and why did we let it e acceptable for a full-time job not to pay enough to live on? The living wage isn’t just a wonkish idea – it’s the political world catching up with many Britons’ reality.

When the national minimum wage was adopted in 1998, many were sceptical. The fear was that it might hit the number of jobs available. There is ample evidence to show this is not the case. For instance, in 2012 the Institute for Social and Economic Research at the University of Essex studied the minimum wage and “found almost no evidence of significant adverse impacts on employment”. Today, the minimum wage is supported by all three mainstream parties and rightly so. Yet, for many, the minimum wage does not represent a fair wage.

Opperman claims there is no evidence that the minimum wage has any significant adverse effect on employment. I’m sure that e as quite a surprise to the 973,000 young people aged 16-24 in Great Britain that are unemployed. The unemployment rate for that age group in May 2013 was 21.4 percent. If Mr. Opperman is correct, than there are minimum wages jobs available to every young person that wants one and the only reason they remain unemployed is because they refuse to work for such low wages. Does anyone think that is actually the case? If not, then we can set aside the silly notion that minimum wage laws do not adversely affect employment.

And therein lies the rub for the “living wage.” If there are not enough jobs to be had at the minimum wage, there will be even fewer jobs to be had when the wage rate is artificially inflated to an even higher living wage standard. If an employer is not willing to pay $7 for labor that is only worth $4, why would they pay $11? By raising the minimum wage they won’t be incentivized to add more employees, but merely incentivized to eliminate all the jobs whose labor is not valued at $11 or more.

The effect of a government-imposed living wage would, like the effect of the current minimum wage, be to hurt the poor by reducing the number of jobs available for low-skilled, low productivity workers.

However, Opperman is right that a living wage is a worthy goal, and one that conservatives should seek to achieve. To do this effectively, though, requires more than forcing employers to pay a premium for labor. Instead, we should focus on faster economic growth and improving productivity of low-skilled workers. By increasing the value of a worker’s labor, we make it possible for them not only to feed their family but also to help fulfill the needs and desires of their neighbors.

Progressives propose government-mandated redistribution as the solution to almost every economic problem involving the poor. But such short-term fixes do not change the long-term challenges that are passed on from generation to generation. Low-skilled parents tend to raise low-skilled children, trapping them in a cycle of low wages. Only by increasing the real value of a worker’s labor – primarily through gains in productivity – can we truly help them gain financial security and increase social mobility.

The goal should not be to merely give people a living wage but to help them gain the ability to make a life for themselves based on the value of their labor. What the working poor need most is marketable skills and productive jobs, not more handouts disguised as “wages.”

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
St. Clement of Alexandria on the Value of Wealth
I wrote several blogs last week about the value and importance of the Church Fathers. One of the early Greek Fathers was Clement of Alexandria, born in Athens around A.D. 150. His parents were pagans. He was converted to faith in Christ and began to travel widely searching for faithful Christian teachers. He attended the famous School of Theology in Alexandria, founded by Pantaenus in A.D. 180. After he settled there he became the director of the school, thus Clement...
Economic Recession and Charitable Giving
I’ve written a fair bit over recent months about trends in charitable giving and Christian tithing. One the latter point, I touched on the importance of tithing in my latest “On the Square” feature at the First Things site. I’m looking forward to getting a look at Douglas LeBlanc’s book, Tithing: Test Me in This. We are seeing right now just how critical faithful charity can be in the midst of disaster. The Barna Group recently released a major new...
Samuel Gregg: Debt, Finance, and Catholics
In Crisis Magazine, Acton Research Director Samuel Gregg has a new article that looks at how Catholics reflect on a wide range of financial questions ranging from the federal government’s fiscal woes to consumer debt to a fragile banking system. Today one looks in vain for Catholic thinkers studying our debt and deficit problems from standpoints equally well-informed by economics and sound Catholic moral reflection. We don’t, for instance, hear many Catholic voices speaking publically about the moral virtues essential...
The West and the Rest
Over at the Comment site, I review Dambisa Moyo’s How the West was Lost: Fifty Years of Economic Folly—and the Stark Choices Ahead. In “War of the Worldviews,” I note that the strongest elements of Moyo’s work are related to her analysis of the causes and the trends of global economic power. “Faced with bined might of the Rest,” writes Moyo, “the West is forced to grapple with a relentless onslaught of challengers from all corners of the globe. And...
Audio: The Impact of Religion on Economic Development
Last week, the Acton Institute held a conference in Rome examining the rise of Asian Economies. One of the keynote speakers was Thomas Hong-Soon Han, the Ambassador of the Republic of Korea to the Holy See. Vatican Radio spoke with him about the topic of the conference; you can listen to the interview using the audio player below: [audio: ...
Meaningful Work and Enterprise Culture in China
To conclude the Acton Institute’s May 18 Rome conference, Family-Enterprise, Market Economies, and Poverty: The Asian Transformation, panelist Fr. Bernardo Cervellera reminded the audience of a fundamental principle to sustain the long term growth of any free economy: spiritually meaningful work. Fr. Bernardo Cervellera, the outspoken missionary of the Pontifical Institute of Foreign Missions (PIME) and editorial director of AsiaNews (a leading Catholic news agency) recounted some controversial stories from his nearly twenty years experience in China as a professor...
Will I need a CFL Bulb Waiver?
Incandescent light bulbs are months away from being banned because they do not meet the efficiency requirements passed by Congress in 2007 that take effect starting 2012; however, before the ban takes place there may be a need to further evaluate the safety and benefits of CFL light bulbs. New research has some concerned that CFL bulbs contain cancer causing chemicals: …German scientists claimed that several carcinogenic chemicals and toxins were released when the pact fluorescent lamps (CFLs) were switched...
Out of the Whirlwind: God’s Love and Christian Charity
mentary is about the recovery efforts in the aftermath of the tornadoes that struck the South in late April. The focus of this piece is primarily what is going on in Alabama, but it is true for the entire region that was affected. I’d like to thank Jeff Bell of Tuscaloosa for lending his time to talk with me about his experiences. There were so many inspirational anecdotes and stories he offered. I only wish there was room to include...
Fair Trade: Are Good Intentions Enough?
Tomorrow evening economist Victor Claar will be leading an Acton on Tap where he will talk about fair trade. As a Christian and an economist, Claar brings a unique perspective to the discussion. He will be asking a number of key questions including: Is fair trade truly the best way to help the poor, and, if not, then what can we do instead? The blog, Common Sense Concept, recently reviewed Claar’s new book, Fair Trade? Its Prospects as a Poverty...
A Fresh Look (and New Features) for the Acton PowerBlog
We’ve launched a redesigned Acton PowerBlog but there’s more to it than just a visual update. You’ll find the following enhancements: A simpler look that seeks to better emphasize important features of the blogConvenient tab navigation on the right for frequently used itemsIncreased real estate for blog posts like the one you’re readingIncreased emphasis on social media including:New links near the top right and bottom of the page to Acton’s key social pagesA live Facebook page stream on the right...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved