Home
/
RELIGION & LIBERTY ONLINE
/
Why a ‘Living Wage’ Can Hurt the Poor
Why a ‘Living Wage’ Can Hurt the Poor
Nov 28, 2025 6:54 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
Julian Simon was right: More humans equals more abundance
Population growth continues to correspond with greater overall abundance, pointing to the dignity and creative capacity bound up in humans made in the image of God. Read More… In 1968, biologist Paul Ehrlich published “The Population Bomb,” a best-selling panic manifesto that predicted mass starvation and global catastrophe due to overpopulation. “The battle to feed all of humanity is over,” Ehrlich proclaimed. “In the 1970s hundreds of millions of people will starve to death” and “nothing can prevent a substantial...
What is a Christian view of equality?
The pursuit of political equality will always be necessary because, in reality, people do act unjustly. But this is only the first step toward a virtuous society. Read More… This year, for the first time in American history, Juneteenth was celebrated as a federal holiday. Upon signing the Juneteenth National Independence Day Act, President Joe Biden said that “the emancipation of enslaved Black Americans didn’t mark the end of America’s work to deliver on the promise of equality; it only...
Why the NCAA’s new NIL rules are a win for economic liberty
The NCAA’s new rules represent a paradigm shift in college sports and are sure to bring more economic and social empowerment to the lives of student athletes. Read More… On June 21, the Supreme Court of the United States issued a ruling that changed college athletics as we know it. In an opinion by Justice Neil Gorsuch, the court concluded that the NCAA imposed rules that “are not reasonably necessary to distinguish between college and professional sports.” Gorsuch continued by...
Brandt Jean’s ultimate act of forgiveness
Mathew 5:7 says “Blessed are the merciful, for they will be shown mercy.” Brandt Jean’s display of forgiveness and call to Christ for Amber Guyger is a powerful alternative to retribution. Displays of Christ-like mercy promote justice as love. Read More… The killing of Botham Jean continues to make headlines after Amber Guyger, an off-duty police officer who mistook Jean for an intruder in her apartment, then shot and killed him, has asked an appeals court to toss her murder...
The antidote to Americans’ crisis of ‘meaning’
Meaning is not a gift one should hope or expect to be artificially manufactured or stumbled upon throughout life. Rather, it is a blessing already intrinsically bestowed upon every individual. What this blessing requires is a response. Read More… What do you want? Or, better yet, what do you want from what you want? It turns out, more than money or praise, humans yearn for a purpose. And new data indicate Americans are lacking that meaning and connection in their...
Hong Kong’s battle for freedom of the press
As an institution of civil society, the press helps forms the basis of a moral culture, owing neither its creation nor its allegiance to the state. Read More… Freedom of expression is under attack in Hong Kong. In its annual report, “Freedom in Tatters,” the Hong Kong Journalists Association (HKJA) outlines key threats currently faced by the media. According to The Standard, a Hong Kong-based newspaper, the report emphasized that “the risks journalists face amid the NSL [National Security Law]...
Are billionaires evil?
Our attitudes about the ultra-rich largely depend on our views about wealth and how it’s created. By viewing the market through a lens of collaboration and growth, we can more clearly and accurately assess the contributions of the wealthy. Read More… Criticizing billionaires has e a popular cultural trend, based on anti-rich sentiment that was recently exacerbated by a ProPublica report that leaked the tax returns of the 25 wealthiest Americans. The report’s findings were interesting but not particularly surprising,...
A country for old men: Why American communities need the elderly
For those in their twilight years, work has not reached its culmination, but its exaltation. munity life continues to decline, America needs the leadership of older generations. Read More… America is facing a crisis munity. The prevalence of social media is threatening human relationships. Religious detachment is leading to declining civic participation. Politicians and central planners are increasingly expanding their reach in munities. As the nation desperately searches for solutions to the problem, our leaders may be overlooking our nation’s...
A biblical theology of work, Part 2: Wealth creation
In Part 1 of our “theology of work” series, we examined why we work, concluding that following our calling, whatever that may be, provides us with meaning and purpose, and represents mand of God in creation. Part 2 examines the virtues of work, earning a living and using that wealth honorably. Read More… Wealth creation is a divine imperative, though one that generates significant responsibilities. The church fails on business and economics when leaders think only about the responsibilities of...
Hong Kong public librarian suspended by Chinese Communist Party for promoting works by Jimmy Lai
The suspension of a librarian by the Chinese Communist Party for featuring works by journalist and pro-democracy activist Jimmy Lai is the latest attack on freedom of expression in Hong Kong. Read More… What does absolute control look like in Communist China? It looks like an unnamed Hong Kong librarian at the Shek Tong Tsui Public Library being suspended from her job after placing 10 of Jimmy Lai’s works on the “Librarian’s Choice” shelf in late June. Jimmy Lai, founder,...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved