Home
/
RELIGION & LIBERTY ONLINE
/
Sen. Warren: Why Isn’t the Minimum Wage $22 an Hour?
Sen. Warren: Why Isn’t the Minimum Wage $22 an Hour?
Oct 13, 2026 5:45 PM

In the United States we have approximately 314 million citizens. In the United States Senate, the upper house of our country’s bicameral legislature, there are exactly 100 senators. That means only 1 senator is selected for every 3.14 million people in the nation. Because two e from each state and the population is spread unevenly, the ratio of citizens to senators isn’t exact. Still, you’d think out of a pool of millions the chances are high that people selected for the Senate would have an above-average understanding of basic economics.

Sadly, that is not the case.

A prime example is Massachusetts Sen. Elizabeth Warren asking why the minimum wage is not $22 an hour.

Here’s Sen. Warren’s full question:

If we started in 1960, and we said that, as productivity goes up — that is, as workers are producing more — then the minimum wage is going to go up the same. And, if that were the case, the minimum wage today would be about $22 an hour. So, my question, Mr. Dube, is what happened to the other $14.75?

Let’s consider the implications of her question. If it is true that the lowest skilled workers should be earning $22 an hour, then the average hourly wage for U.S. workers should be somewhere $50 an hour. So what is the actual rate?

Along with a nice office, every senator is given a staff to help them with such matters as research. Sen. Warren didn’t even have to use Google, she could have just asked her legislative assistants. If she had simply asked them to check she would have discovered that as of last month the average hourly wage in the U.S. is $23.82.

Why is the actual wage only $1.82 more than the expected minimum wage? Is it that the average worker is only slightly more productive than the lowest skilled workers?

If you’ve taken a basic economics course (or just have mon sense), you’re probably saying to yourself, “Perhaps productivity and wages do not grow at a constant rate?” And you’d be right. As Erika Johnsen explains:

[S]hould the increase in crop yield from a farmer using a donkey and plow versus a farmer using a tractor be directly proportional to an increase in those crops’ market worth because of some sort of imagined moral law about productivity and wages? No, because the market value of those crops has diminished as the ease of production has increased, and if that was the way the world worked, we’d all be paying a heck of a lot more for food right now.

Sen. Warren makes two flaws in reasoning. The first is her assumption that increases in productivity should automatically lead to increases in the minimum wage. She assumes that one variable automatically (productivity) automatically affects a second variable (the minimum wage) at a constant rate. Ironically, her second flawed assumption takes just the opposite approach. She believes (based in part on a flawed economic study) that raising the minimum wage will not cause prices to rise, at least not significantly, and have no detrimental affect on employment.

Her assumption is that rather the passing the cost of higher wages on to the customer, employers will just take less profit. While this may be true of some employers—it could even be true for the majority of businesses—it may not be true for all businesses. What about the employer whose profit margins are already so narrow that any additional cost would eliminate her profits? Her only recourse would be to reduce cost, and since labor was the key cost increase, she’d likely have to lay off workers.

As I’ve written before, raising the minimum wage increases the wages of the few at the expense of the many. This is the basic economic principle of supply and demand applied to labor. Yet Warren puts her trust in one empirical study that tells her increasing the minimum wage won’t lead to increased unemployment (a study which economists admit is an outlier), rather than listening to what actual employers are telling her they will have to do.

Warren’s hubris is as astounding as her lack of economic understanding. But it is all mon among our legislators, who are more interested in passionate than in acting in a morally responsible and economically sound manner.

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
How to Think About Economics Like a Conservative Evangelical
We read the same Bible and follow the same Jesus. We go to the same churches and even agree on the same social issues. So why then do liberal and conservative evangelicals tend to disagree so often about economic issues? To explore that question I recently wrote a series of posts explaining “What Liberal Evangelicals Should Know About the Economic Views of Conservative Evangelicals.” The posts covered 12 principles that generally drive the thinking of conservative evangelicals when es to...
UK Airports To Have Anti-Trafficking Teams
is reporting that, beginning April 1, specially trained teams will be working in UK airports to help stem the tide of human trafficking victims. The British government says it want to make sure that “there is ‘no easy route into the UK for traffickers.'” Home Office minister Karen Bradley said Border Force officers could be the ‘first authority figure in the UK to have contact with a potential victim of modern slavery.’ ‘Their role is vital in identifying and protecting...
Video: Erik Prince on ‘Civilian Warriors’
Eric Prince, founder and former CEO of Blackwater Inc., speaks at the Acton Institute On Tuesday night, the Acton Institute ed Erik Prince to the Mark Murray Auditorium in the Acton Building in Grand Rapids, Michgan. Prince, a west Michigan native, is the founder and former CEO of Blackwater, Inc., the private security firm that became the subject of a great deal of controversy during the Iraq War, and remains so to this day. Prince’s address shared the title of...
A ‘Child Prostitute?’ No Such Thing
No child chooses to be a prostitute. No 11 year old girl spreads out her Barbies on her bed on a rainy Saturday afternoon to play “hooker and john.” No teenage girl doodles her way through geometry class, dreaming about hitting the streets to have sex with a dozen nameless men that night. “Child prostitute?” There is no such thing. Let’s banish the phrase, call it slavery and work to solve the issue. Because stories like Tami’s and Sandra’s are...
A Lesson in Work Ethics from Mike Rowe
“The definition of a good job, the meaning of work,” says Mike Rowe, Acton’s favorite blue-collar philosopher of work, “[is] the willingness to see what a lot of people might call a bad job and only see an opportunity.” Rowe said jobs have been available since 2003, but Americans aren’t defining them as “good.” Meanwhile, employers are desperate for people willing to learn a “useful skill” and workhard.In a TED talk in 2008, Rowe also talkedabout the nature of hard...
The Swiss Military: Gone Fishin’
From Agence France-Presse: Geneva — No Swiss fighter jets were scrambled Monday when an Ethiopian Airlines co-pilot hijacked his own plane and forced it to land in Geneva, because it happened outside business hours, the Swiss airforce said. You simply cannot make this stuff up. Granted, Switzerland has sort of made it “their thing” to avoid any territorial issue more dangerous than a Von Trapp family crossing, but this is embarrassing. Yes, the Swiss haven’t had much need for a...
On Banning ‘Make A Difference’
One of my dreams is to meet the person responsible for introducing the charge to young adults to “go out there and make a difference.” Youth and young adults are pressured and challenged to go “make a difference” but making a difference has never been clearly defined or quantified anywhere. For a few years now I have refused to tell my students to “go change the world” or “go make a difference.” Do those phrases really mean anything? In light...
Seven Deadly Sins: Gluttony, Lust … Is Anyone Paying Attention?
. I imagine there are a lot of those. But Ms. Adams’ work focuses on attaining marriage rights for people like herself: those living in polyamorous living situations. To get a sense of this: Along with her primary partner Ed, she is currently romantically involved with several other men and women. An interview with Ms. Adams is currently featured in The Atlantic. She was asked, after stating that we humans have a “hard time with monogamy,” what the consequences of...
Of Bakers and Beliefs: Kirsten Powers’ Faith-Work Disconnect
In a recent column forUSA Today,Kirsten Powers uses somelegislationin the Kansas state legislature as a foray for arguing that, for many Christians, the supposed fight for religious liberty is really just a fight for the “legal right to discriminate.” Pointing to recent efforts to protect aflorist, abaker, and aphotographerfrom being sued for their beliefs about marriage, Powers argues that these amount to the homosexual equivalent of Jim Crow laws. Powers, herself a Christian, reminds us that Jesus calls us “to...
Samuel Gregg: ‘Our Minimum-Wage Circus’
Acton’s Director of Research, Samuel Gregg, recently wrote about the effects of raising the minimum wage at the National Review Online. The latest CBO report estimates that increasing the minimum wage to over $10/hour in 2016 will not greatly affect the poorest in society; it is estimated that this increase will only help 2% of those living in poverty. The benefit of the increase will go to people fortably above the poverty line.” Gregg discusses this phenomenon: Is that just?...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved