Home
/
RELIGION & LIBERTY ONLINE
/
Why a ‘Living Wage’ Can Hurt the Poor
Why a ‘Living Wage’ Can Hurt the Poor
Jan 2, 2026 7:38 PM

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
Unemployment as Economic-Spiritual Indicator — February 2015 Report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Restoring All Things: Living For (Not Against) the World
“Christ followers are to see the world differently and have a different posture toward it. Rather than safety from or capitulation to the world, the grand narrative of Scripture describes instead a world we are called to live for. This world, Scripture proclaims, belongs to God, who then entrusted it to His image bearers. He created it good and loves it still, despite its brokenness and frustration.” –John Stonestreet &Warren Cole Smith Through thenew film series, For the Life of...
Ferguson Police Officer Exonerated in the Shooting of Michael Brown
Since last August, federal prosecutors and civil rights investigators have been investigating whether the killing of Michael Brown by Ferguson, Missouri police officer Darren Wilson was a civil rights violation. In an 86-page report released Wednesday, the Justice Department cleared the officerof any criminal wrongdoing or violation of civil rights in the shooting. Here are some highlights from that report. • FBI agents independently canvassed more than 300 residences to locate and interview additional witnesses. Federal investigators also collected cell...
Is God opposed to Christians making lots of money?
“Being Godly doesn’t necessarily mean that you’re going to be wealthy. God makes no such guarantees in the Bible, so goodbye, prosperity gospel…[But] God clearly is not opposed to wealth in a kind of blanket way. He’s not even opposed, necessarily, to tremendous wealth, gobstopping amounts of money.” –Owen Strachan In a lecture for The Commonweal Project at Southern Baptist Theological Seminary, Owen Strachan tackles the tough subject of whether it’s morally wrong for Christians to make lots of money....
Hernando de Soto: Property Rights, Not Just Capitalism
de SotoThe work of Hernando de Soto has been followed closely for years at Acton and more recently at PovertyCure. See the 2001 interview “The Poor are the Solution, Not the Problem” in Religion & Liberty and a short film clip of de Soto talking about property rights and rule of law at PovertyCure. Search both sites and you’ll find much more. De Soto’s book The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else is...
Human Flourishing In Japanese-American Internment Camps
It is a disturbing part of American history: the internment of American citizens of Japanese descent and Japanese who were legally living in the U.S. during World War II. About 120,000 people were placed in internment camps in the western part of the U.S. Life in the camps was harsh. The only furnishings were beds. There was no privacy. Many people lived in metal huts, which provided no protection from heat or cold. However, many of those interned were resourceful,...
Sucrose, Sucrose and the Anti-GMO Archies
The left’s war against genetically modified foods continues apace. Last week, the nonprofit Green America outfit boasted a victory over The Hershey Company, which has agreed to use “simpler ingredients” in its addictive Hershey’s Kisses Milk Chocolates and Hershey’s Milk Chocolate Bars. Yes, “Frankenfood” fearers, the delicious GMO-derived sucrose of Hershey’s chocolate soon will be replaced with an identical product coincidentally known as sucrose. Finally, the “Sugar, Sugar” bubblegum world imagined by The Archies in 1969 has been realized as...
‘It’s Not Fair!’ No, It Isn’t
Any parent or teacher has heard the cry: “It’s not fair!” It can be a battle over who gets to ride in the front seat, who gets to stay up late, or who gets anything perceived as a special privilege. “Fairness” to children means, “I should get what I want.” Apparently, it’s the same with politicians. Daniel Hannan, Conservative Member of the European Parliament (and last year’s speaker at Acton’s Annual Dinner) tackles “fairness” in terms of politics at CapX....
Remembering M. Stanton Evans (Update: Digital Download Now Available)
Lovers of freedom lost alongtimeally this week with the passing of author, journalist and intellectual M. Stanton Evans at age 80. Stephen Hayward penned a remembrance of Evans at Powerline: If you’ve never heard Stan’s deadpan midwestern baritone in person, you’ve missed a great treat, as it e across anywhere near as well in pixels. But all is not lost: there are supposedly some recordings of his greatest hits available on the Philadelphia Society website. [There are also several great...
Associational Support in a Digital Age: In Memoriam of Fr. Matthew Baker
Fr. Matthew Baker Alexis de Tocqueville, observing the young United States in the 1830s, wrote, “Wherever, at the head of a new undertaking, you see in France the government, and in England, a great lord, count on seeing in the United States, an association.” In the midst of recent tragedy — the untimely death of Fr. Matthew Baker, a Greek Orthodox priest killed in a car accident this past Sunday evening, leaving behind his wife and six children — it...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved