Home
/
RELIGION & LIBERTY ONLINE
/
Minimum wage, minimum liberty
Minimum wage, minimum liberty
Jul 1, 2025 3:01 PM

Taking their cue from Seattle, cities and states are implementing minimum wage increases all over the country. Late last year, voters in Washington approved an increase in the statewide minimum wage that will raise it to $13.50 per hour by 2020. Three other states have also approved increases, including the typically conservative Arizona, where by 2020 the minimum wage will increase to $12 per hour.

Yet such policies rely on a fundamental abridgment of employer and employee freedom, leading to an abridgment of opportunity, in turn.

In a new study published by the National Bureau of Economic Research, we see a strong affirmation of that general principle. Commissioned by the city of Seattle to gauge the effects of the city’s progressive minimum wage increases, the study concludes that for low-wage and entry-level workers the costs of the hike outweigh the benefits by a factor of three to one.

The results seem to confirm what conservative economists have long said about artificial minimum wage hikes. Namely, that the group who is supposed to benefit most — those on the low end of the wage spectrum — end up instead with lower wages or lost jobs. But while the paper may not prove this conclusively, it’s likely to have an impact not only on Seattle, but on other states and cities considering proposed increases to the minimum.

The new research seems to conflict with some past studies on the effects of the minimum wage on employment rates. One such study, published in 1994 by David Card and Alan B. Krueger in The American Economic pared employment changes in fast-food restaurants between New Jersey and Pennsylvania while New Jersey enacted an increase. Card and Krueger concluded that particular hike, from $4.25 to $5.05 (almost 19%), had no negative effect on employment rates.

However, according to Max Ehrenfreund, the new study finds different results by broadening the scope of the data. “Economists might not readily dismiss the new study as an outlier, however,” Ehrenfreund writes. “The paper published Monday makes use of more detailed data than havebeen available in past research, drawing on state records of wages and hours for individual employees.”

As the Washington Post reported: “The paper is likely to upend a debate that has continued among economists, politicians, businesses and labor organizers for decades. In particular, the results could exacerbatedivisions among Democrats, who are seekingan economic agenda to counter President Trump’s pitches forprotectionism, reduced taxes and restrictions on immigration.” For more details on the study, see Joe Carter summary and Dylan mentary.

What these states and cities will ultimately realize is that employers wanting to stay in business only have three options when faced with mandatory minimum wage laws. Either they (1) freeze hiring, causing employment rates to drop; (2) hire employees with higher skill sets, marginalizing teens and entry-level workers from the job market; or (3) increase prices, passing along the costs to the market.

This diminishes freedom from the other end, too, limiting the range of options that are available for the very employees it’s supposed to help. If my retail job in high school had paid $15 an hour, I would have been priced out of the market by someone older and more responsible, with more skills and knowledge. I would have lost that opportunity to learn how to e a bit more responsible myself, all because prices were not allowed to serve as a signal of actual preferences in free and open exchange

Ultimately, aside from its pragmatic effects the most frightening effect of a state-mandated minimum wage is the abridgment of individual liberty it inevitably entails. After all, if I’m willing to work for $10 an hour and the government says that would be illegal, they have essentially taken away my liberty to negotiate for myself.

When the state, which exists to protect the rights of individuals, es an agent that inhibits personal liberty, we shouldn’t be surprised that the most vulnerable among us will be the ones who suffer the most.

Image: Fibonacci Blue,Strike and a protest march for a $15 minimum wage in Dinkytown, Color,CC BY 2.0

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
The Utopian-Progressive Worldview: Feel Good First, Ask Questions Later
Senator Ron Johnson (R-WI) recently appeared on the MSNBC round-table discussion show Morning Joe and was asked by Senior Political Analyst Mark Halperin to give his personal take on the reality of a world where Obamacare is the law of the land. Here’s what transpired: JOHNSON: Well, it’s obviously the law of the land right now. Obviously, I’m concerned about it. I think that the cost estimate of Obamacare is grossly understated. I think far more Americans are going to...
5 TV Shows That Demonstrate the Importance of Ordinary Work
Television is often lamented for its propensity to exaggerate the mundane and the ordinary. Yet when es to something as routinely downplayed and unfairly pooh-poohed as our daily work—the “rat race,” the “grindstone,” yadda-yadda—I wonder if television’s over-the-top tendencies might be just what we need to reorient our thinking about the broader significance of our work. As I’ve argued previously, we face a constant temptation to limit our economic endeavors to the temporal and the material, focusing only on “putting...
9 Things You Should Know About Pope Francis
Early today, Cardinal Jorge Mario Bergoglio of Buenos Aires, Argentina was elected as the 266th pope of the Catholic Church. Here are nine things you should know about Pope Francis. 1. Bergoglio was born in Buenos Aires in 1936. His father was an Italian immigrant. 2. He’s the first pope from South America. The only remaining continents that have never had a e from their lands are Australia, Antarctica, and North America. 3. He’s the first Jesuit pope. 4. He...
The Duck Commander’s Business as Mission
Taking a look at these videos will give you a pretty good idea of what the Duck Commander’s mission is. You’ll see how the popular A&E series Duck Dynasty, focusing on the lives of the Duck Commander products, embodies a vision of business as mission on a variety of levels. As Phil puts it, “we all are preachers.” Here’s Phil Robertson, the Duck Commander, describing his journey to faith in Jesus Christ: Here’s the Duck Commander on the origins of...
Rev. Sirico: Don’t Underestimate Benedict’s Silent Influence
New Delhi TV recently published a Agence Franch-Presse report describing the former pope’s “invisible presence at conclave:” Retired pope Benedict XVI is gone but far from forgotten as cardinals begin voting for candidates to replace him, with his personal secretary Georg Gaenswein one of the last to leave the Sistine Chapel before the start of the conclave. Rev. Robert Sirico addresses Benedict’s influence on the conclave: Benedict has “been very careful not to insert himself into the proceedings” for his...
Acton Institute’s Rev. Robert A. Sirico Comments on the Election of Pope Francis
With the election of Pope Francis, the Cardinal Jorge Mario Bergoglio of Buenos Aires, Argentina, the Rev. Robert A. Sirico released the following statement. “Pope Francis is a man of great spirituality who is known for mitment to doctrinal orthodoxy as well as for his simplicity of life,” Rev. Sirico said. “Like Benedict XVI, bines concern for the poor with an insistence that it’s not the Church’s responsibility to be a political actor or to prescribe precise solutions to economic...
What is Fair?
In their book, American Society: How It Really Works, authors Erik Wright and Joel Rogers make the case that when we talk about social injustice most Americans think in terms of some sort of material inequality that might be considered unfair and possibly remedied if our social institutions were different. There are multiple problems with this reduction but it is fair to say that this is a dominant conceptual framework in our culture today. As a result, one of the...
Women of Liberty: Abigail Adams
(March is Women’s History Month. Acton will be highlighting a number of women who have contributed significantly to the issue of liberty during this month.) In today’s era of texting, Facebooking and emails, one wonders fortable our nation’s second First Lady would have felt about these forms munication. Abigail Smith Adams, while not a “woman of letters” (she had little formal education), left behind letters that tell us much about her, her marriage and her desire to be part of...
Commentary: A Passion for Government Leads to Neglect of Our Neighbor
When government provision is expected in all areas of life we begin to neglect our personal obligations to our families and neighbors, says Dylan Pahman, assistant editor of the Journal of Markets & Morality. “For the ancient Jews, intergenerational relations were a religious matter,” says Pahman. mand ‘honor your father and mother’ (cf. Exodus 20:12) served as a bridge between duties to God and duties to neighbors. Our situation today may be quite different than that faced by Jews in...
Charlie Self on Spiritual Empowerment in Work and Economics
AEI’s Values & Capitalism recently posted an interview with Dr. Charlie Self, professor at Assemblies of God Theological Seminary and senior advisor for the Acton Institute. In the last few weeks, I’ve posted several excerpts from Self’s new book, Flourishing Churches and Communities: A Pentecostal Primer on Faith, Work, and Economics for Spirit-Empowered Discipleship,which he discusses at length in the interview. When asked what a Pentecostal worldview adds to the “larger Christian conversation about faith, work and economics,” Self responded...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved