Did you know? The Patriot Post is funded 100% by its readers. Help us stay front and center in the fight for Liberty and support the 2024 Year-End Campaign.

July 29, 2014

The Clear Winner: Right-to-Work Compared to Minimum Wage

Right-to-work coincides with increased wages in Michigan, while minimum wage kills jobs.

The U.S. Department of Commerce’s Bureau of Economic Analysis released data this week that is sure to further stir the debate over how to improve wages in America. It turns out that Michigan, which became a right-to-work state in 2012, saw its per-capita personal income rise from $38,291 in 2012 to $39,215 a year later. This was the ninth highest income increase in the country.

Right-to-work laws essentially give workers the opportunity to pursue employment without having to pay dues to unions, who frequently use that money to secure political power at the expense of worker protections. Michigan, a state where unions have held sway for decades, shocked the country when the state’s Republican lawmakers passed a right-to-work law. Union-backed Democrats predicted an employment catastrophe, expecting the state to plunge into some sort of feudal system. That didn’t happen, and although the one-year gain is modest, it certainly offers encouragement for other states looking to find ways to boost incomes.

Richard Vedder, an economics professor at Ohio University, noted in an extensive study released this week, “Incomes rise following the passage of RTW [right-to-work] laws, even after adjusting for substantial population growth that those laws also induce.”

It’s certainly a better way to go than increasing the minimum wage. The White House and Democrats in Congress still cling to the backwards idea that raising the minimum wage will actually reduce unemployment. But it’s hard to see how making workers more expensive to hire will be more attractive to companies looking for help. Then again, liberals aren’t known for their skills in economics.

The minimum wage applies to only one in 20 workers, most of whom are under 24 or unskilled. A Heritage Foundation analysis of Bureau of Labor Statistics data from all 50 states between 1990 and 2013 found that teenage unemployment rates are higher and labor participation is lower in states with minimum wages greater than the federal minimum. In 2007 and 2008, the federal minimum wage was raised three times, and, as a result, the national teen unemployment nearly doubled.

The economy has improved to some degree, but unemployment and underemployment remain stubbornly high for a large portion of the working population. Teenagers, who stand to earn substantially more as adults if they work during their school-age years, have been priced out of the labor market. Raising the minimum wage again will further hurt their situation. Employers are simply not going to hire young workers with no job experience at $10 an hour. One solution is to create a teen wage of $5 or $6 an hour. Another option would be to let the market determine what a job is worth rather than leave the decision to social engineers in Washington.

In essence, the difference in these two approaches is this: Right-to-work allows for greater access to jobs, while a government mandated minimum wage prices some prospective workers out of those jobs. Which one makes more sense if creating jobs is the objective?

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.