Home
/
RELIGION & LIBERTY ONLINE
/
Why a ‘Living Wage’ Can Hurt the Poor
Why a ‘Living Wage’ Can Hurt the Poor
Jan 4, 2026 8:25 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
Acton media roundup: Jay Richards on Fox and Friends
Acton Research Fellow and Director of Acton Media Jay Richards joined the Fox and Friends crew on Fox News Channel this morning to kick off this presidential election year with some analysis of the role of religion in the Republican presidential primary. For those of you who missed it, here’s the clip: ...
More Books of Interest: IVP
For my money, some of the most interesting titles in recent years in the field of Christian scholarship e from IVP Academic (an imprint of InterVarsity Press). The latest catalog features an announcement of Thomas Oden’s How Africa Shaped the Christian Mind, as well as an interview with the author, which prompted a couple reflections. (The interview is available for pdf download here, Fall 2007) I remember my first teaching assignment, a survey course in American history. We were covering...
Global warming consensus alert – consensus breach at the New York Times
I guess I’ll do the honors for first post of the year once again… Availability cascade: An availability cascade is a self-reinforcing process of collective belief formation by which an expressed perception triggers a chain reaction that gives the perception increasing plausibility through its rising availability in public discourse. The driving mechanism involves bination of informational and reputational motives: Individuals endorse the perception partly by learning from the apparent beliefs of others and partly by distorting their public responses in...
Is Capitalism Moral? — Rev. Sirico on WSJ video
Rev. Robert A. Sirico is interviewed by James Freeman, assistant editor of the Wall Street Journal’s editorial page, about markets and morality and about the Acton Institute’s Call of the Entrepreneur documentary. ...
Commercial Society reviewed on University Bookman
The University Bookman, a publication of the Russell Kirk Center, reviews Dr. Samuel Gregg’s The Commercial Society: Foundations and Challenges in a Global Age in its Fall 2007 issue. Actually, the Bookman reviewed it twice. Reviewer Robert Heineman, a professor of political science at Alfred University in New York, described the book as an “exceptionally well written volume” that should be read by anyone concerned about human freedom and progress. Heineman has this to say about Gregg’s discussion of democracy...
Journal of Markets & Morality on ATLA Religion
The Journal of Markets & Morality is one of eight journals that has been selected for indexing in the seminally important ATLA Religion Database in 2007. The American Theological Library Association (ATLA) is a professional association of theological libraries and librarians, with almost 300 institutional and 600 individual members. From the ATLA’s website: “The ATLA Religion Database (ATLA RDB) currently indexes more than 500 journal titles and approximately 250 polygraphs each year, and considers new titles for evaluation based on...
Movie review: Charlie Wilson’s War
The newly released Charlie Wilson’s War is a film based on a book that chronicles the semi-secret war that led Afghan freedom fighters to defeat the Soviet military during the 1980s. Tom Hanks plays former Democratic Texas Congressman Charlie Wilson, who is also known as “Good Time Charlie” for his womanizing, drinking, and recreational drug use. The viewer is led to believe Congressman Wilson is not serious about his elected position until he takes up the cause of the Afghan...
The Truth about Tithing
In this week’s Acton Commentary I examine “The Truth about Tithing.” “Whatever benefits we claim to receive from tithing, whether spiritual, emotional, or financial, these are not to be the reason that we give. We give out of obedience to God’s word,” I write. Here’s a link to a Marketplace Money report from last Friday that was the proximate occasion for the piece, “Tithing can be a good investment.” It’s a pretty disgustingly caricatured picture of tithing we get from...
‘Liberty Theology’ — WSJ article by Rev. Sirico
In the Wall Street Journal’s Americas column, Rev. Robert A. Sirico examines the shift in thinking about liberation theology among Catholic Church leaders in Latin America. Excerpt: Catholic Church bishops, priests and other Church leaders in Latin America were once a reliable ally of the left, owing to the influence of “liberation theology,” which tries to link the Gospel to the socialist cause. Today the Church ing to recognize the link between socialism and the loss of freedom, and a...
Criminal Justice and Christian Forgiveness
Last Saturday a brief mentary of mine ran in the weekly Religion section of the Grand Rapids Press, “Chandler case exemplifies need to repent.” The occasion for the piece was the sentencing over the last few months of those convicted of involvement in the rape and murder of Janet Chandler in 1979 (more details about the case can be found in the Holland Sentinel’s special coverage section.) Chandler was a student at Holland’s Hope College at the time of her...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved