Home
/
RELIGION & LIBERTY ONLINE
/
Why a ‘Living Wage’ Can Hurt the Poor
Why a ‘Living Wage’ Can Hurt the Poor
Jul 29, 2026 12:24 AM

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
The gospel as pearl and leaven
In its 2,000-year history, the church has actively integrated evangelism and social action in powerful and transformative ways. Yet for many of today’s Christians, we feel as though we must choose between a life of ministry and cultural engagement, that our vocational paths areinevitably torn between “saving souls” and “serving justice.” In the Bible, however, we seeboth calls woven together — “fill the earth and subdue it” (Gen. 1:28) and “go and make disciples of all nations” (Matt. 28:19). Theywere...
Finance, Faith, and Human Flourishing
Samuel Gregg lecturing at Acton University. Samuel Gregg’s most recent book For God and Profit continues to receive great reviews. The most es from author and speaker John Horvat, II at The Stream. Horvat begins his review by highlighting the way Gregg reconciles the pursuit of profits with Christianity. He says this: Early in the book, Gregg establishes that profit through finance can be realized “provided that es first and that the profit is (1) understood as a means to...
Will free exercise of religion survive as a legal concept?
Is the ultimate repository of authority and control human or divine? While that is a religious question, how we answer has profound ramifications on policy and law. In fact, as Marc Degirolami notes, the answer may determine whether free exercise of religion can survive as a legal concept: One of the ways that modernity has answered this challenge is by appropriating “religion” and transforming it from a duty that one owes a creator to a duty that one owes to...
Radio Free Acton: Karl Zinsmeister on Philanthropy and Education Reform
On this edition of Radio Free Acton, we speak with Karl Zinsmeister, Vice President at Philanthropy Roundtableand former chief domestic policy advisor to President George W. Bush, about efforts to improve public education es over the years, why charter schools are succeeding where past reform efforts have failed, and the role of private philanthropy in fostering that success. Karl will be kicking off our Evenings at Acton seriesthis fall on Monday, October 3rd with a lecture entitled Indispensable: How Philanthropy...
Review: Samuel Gregg’s latest ‘should be on every Christian’s reading list’
The US Review of Books recently analyzed Samuel Gregg’s latest book, For God and Profit. John E. Roper, the journalist who wrote the review, gave For God and Profit a “RECOMMENDED” rating. Beyond the rating, Roper, had some very positive remarks about Gregg’s book. He said this: The author knows he has his work cut out for him. Many Christians have been indoctrinated with a general distrust of both money and its effects on society. This often translates into the...
How to understand the demand curve
Note: This is the secondpost in a weekly video series on basic microeconomics. To demonstrate how much of a good or service people are willing to buy at different prices, economists often use a graph called the demand curve. In this video, Marginal Revolution University revealswhat a demand curve is, explains “why people go crazy on Black Friday,” and shows how people respond to changes in the price of oil. (If you find the pace of the videos too slow,...
Rhode Island makes it difficult to suspend students
The current problems with the school-to-prison pipeline often start with poor school discipline policies. Various school discipline policies and tactics have e under criticism for being overly harsh—often causing students to drop out of school. The frequent use of suspension and expulsion for minor offenses has monplace in many schools across the country. Over the summer Gina Raimondo, the Democratic governor of Rhode Island, signed a bill into law making it harder for schools to suspend students for minor infractions....
Why being able to trust strangers leads to prosperity
My mother would be mortified by my behavior. Since before I could walk she warned me about “stranger danger”: Don’t get into a car with strangers; don’t accept candy from strangers; don’t’ go into a strangers house, etc. What would she think if she knew I had taken an Uber to an Airbnb? Growing up in the 1970s parents and teachers drilled into my young brain the idea that the most dangerous people in the world (aside from Commies) were...
5 Facts About the U.S. Constitution
Tomorrowis Constitution Day, a holiday celebrated in America every year on September 17, the anniversary of the day the framers signed the document. Here are five facts you should know about the U.S. Constitution: 1. The Constitution contains 4,543 words, including the signatures and has four sheets, 28-3/4 inches by 23-5/8 inches each. It contains 7,591 words including the 27 amendments. It is the oldest and shortest written Constitution of any major government in the world. 2. Thomas Jefferson did...
The rhythm of vocation: A challenge to ‘work-life balance’
“If all of our working and all of our resting serves the same vocation of love, why do we so often feel out of balance?” In a recent talkfor theOikonomia Network, author and church historian Dr. Chris Armstrong offers a fascinating exploration of thequestion, challenging mon Christian responses on “work-life balance” andoffering a holistic framework forvocation, service, and spiritual devotion. Recounting a situation where hehimself wasfaced with frustrations about work and family life, Armstrong recalls the advice he received from...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved