Home
/
RELIGION & LIBERTY ONLINE
/
Why a ‘Living Wage’ Can Hurt the Poor
Why a ‘Living Wage’ Can Hurt the Poor
Jan 16, 2026 4:11 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
Using ‘Human Rights’ to Squelch Free Speech
In the June issue of Reason Magazine, Ezra Levant details his long and unnecessary struggle with Canadian human rights watchdogs over charges that he insulted a Muslim extremist, who claimed to be a direct descendant of the Prophet Muhammad. This sorry episode also cost Levant, the former publisher of Canada’s Western Standard magazine, about $100,000. Read “The Internet Saved My Life: How I beat Canada’s ‘human rights’ censors.” (HT: RealClearPolitics). Levant sums it up this way: The investigation vividly illustrated...
PBR: Only as Good as the People
What’s wrong with populism? Nothing, necessarily. But, to hazard a tautology, populism is only as good as the people. I think this territory was covered pretty well by Alexis de Tocqueville, whose view was in turn covered pretty well by Sam Gregg in mentary of a couple weeks ago: “The American Republic,” Tocqueville wrote, “will endure until the day Congress discovers that it can bribe the public with the public’s money.” As Sam notes, Tocqueville cited the importance of religion...
What do our holidays mean to us?
[Editor’s Note: We e Ken Larson, a businessman and writer in southern California, to the PowerBlog. A graduate of California State University at Northridge with a major in English, his eclectic career includes editing the first reloading manual for Sierra Bullets and authoring a novel about a family’s school choice decisions titled ReEnchantment, which is available on his Web site. For 10 years Ken was the only Protestant on The Consultative School Board for the Roman Catholic Diocese of Orange...
Review: Joker One
It is appropriate that Donovan Campbell offers an inscription about love from 1 Corinthians 13:13 at the beginning of his book, Joker One: A Marine Platoon’s Story of Courage, Leadership, and Brotherhood. That’s because he has written what is essentially a love story. While there are of course many soldier accounts from Afghanistan and Iraq, some that even tell more gripping stories or offer more humor, there may not be one that is more reflective on what it means to...
Gregg on the Moral Environment of Entrepreneurship
In today’s Detroit News, Acton Research Director Samuel Gregg talks about the sort of “moral, legal and political environment” that must exist if entrepreneurs are to flourish. He applies these precepts to the very serious economic problems in Michigan, where Acton is located: … in the midst of this enthusiasm about entrepreneurship, we risk forgetting that entrepreneurship’s capacity to create wealth is heavily determined by the environments in which we live. In many business schools, it’s possible to study entrepreneurship...
PBR: Politics and Populism
Last week Arthur C. Brooks, president of the American Enterprise Institute, made the case for “ethical” populism. Speaking of the Tea Party phenomenon, he writes, the tea parties are not based on the cold wonkery of budget data. They are based on an “ethical populism.” The protesters are homeowners who didn’t walk away from their mortgages, small business owners who don’t want corporate welfare and bankers who kept their heads during the frenzy and don’t need bailouts. They were the...
Global Giving and Local Needs
This month’s Christianity Today features a cover package devoted to the challenge faced by non-profit ministries amidst the recent economic downturn. The lengthy analysis defies any easy or simplistic summary of the state of Christian charity. There are examples of ministries that are scaling back as well as those who are enjoying donations at increased levels. Compassion International and InterVarsity Christian Fellowship are cited as those bucking the conventional logic that giving to charities decreases during a recession. “So far,...
PBR: Cheesy Christian Movies and the Art of Narrative
Writing on the Big Hollywood blog, Dallas Jenkins asks the question: “Why are Christian Movies So Bad?” Jenkins, a filmmaker and the son of “Left Behind” novelist Jerry Jenkins, points to a number of telling reasons for the glaring deficit in artistic plishment, what you might call the dreck factor, that is evident in so many films aimed at the faithful. Jenkins’ critique points to something we’ve been talking about at Acton for some time: the need for conservatives to...
Acton Commentary: From Crisis to Creative Entrepreneurial Liberation
A new study from the Kauffman Foundation shows how Americans are increasingly turning to entrepreneurship to pull themselves out of an economic crisis. “When individuals are truly free to exercise their talents and trade the production of their labor, without oppression from tyrants or the entanglements of unnecessary government ‘oversight,’ the net effect is mutually beneficial for society as a whole,” writes Anthony Bradley in this week’s Acton Commentary. Read mentary at the Acton website and share your response in...
Acton Commentary: Entrepreneurship isn’t enough
Economists and business schools have, in recent decades, rightfully praised entrepreneurs for their ability to create wealth and transform entire industries. But there’s more to it than that, says Sam Gregg in mentary. “If taxes are high, property-rights unprotected, and corruption the norm, then the environment embodies major deterrents to wealth-generating entrepreneurship,” he writes. “Why would people risk being entrepreneurial when they can’t assume their ideas won’t be stolen or their profits arbitrarily confiscated?” Read mentary at the Acton Website...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved