Why Louisiana Tries to Avoid Raising Its Minimum Wage

While there is a national debate surrounding the implementation of a higher minimum wage, the state of Louisiana has maintained its lower rates. This article aims to explore the reasons behind Louisiana's decision to avoid raising its minimum wage, the myth that a higher minimum wage leads to uniform wage increases, and how the state's cost of living differs significantly from other regions.

Why There Is No Need to Raise the Minimum Wage

The argument for avoiding a minimum wage increase in Louisiana centers around the notion that the value of labor will naturally increase without government intervention. The state legislature and local governments in Louisiana believe that the minimum wage is merely a baseline, and that employers and employees can negotiate better wages based on market conditions.

Unlike some other states, Louisiana does provide a state-level minimum wage. However, the implementation of local living wages varies across different counties and cities.

The Myth of Uniform Wage Increases

A persistent myth is that if the minimum wage is set at $15 per hour, it will automatically lead to a $15 raise for all employees previously earning less. However, this assumption oversimplifies the complexities of the labor market. Let us examine a scenario where a business with an Assistant Manager making $12 per hour and a new employee earning $7 per hour would fare under a $15 minimum wage.

Under this new wage law, the Assistant Manager would receive a $3 raise, while the new employee would receive an $8 raise. This scenario raises legitimate questions about fairness. While the Assistant Manager has worked for ten years to reach their position, the new employee has not had the same opportunities to earn a higher wage through experience and skill.

Furthermore, the introduction of a $15 minimum wage may result in employers cutting jobs. In a business with ten employees, four of the lowest-paid employees could be laid off to save on costs. The remaining employees would then have to work longer and harder to cover the new wage requirements, while the business may have to raise prices, leading to a decrease in sales and further job cuts. This could ultimately leave the business employing only four individuals.

The True Cost of Living in Louisiana

The cost of living in Louisiana is significantly lower compared to other parts of the United States. A two-bedroom, 1.5 bathroom condo in the area where I live is valued at approximately $110,000. In Louisiana, for $150,000, one can find a 3,000 sqft three-bedroom house with a garage, two bathrooms, and a half-acre lot. An apartment in the state typically costs around $600 per month.

The cost of living does not increase uniformly across the country. In regions heavily influenced by political policies, such as New York City and San Francisco, the cost of living is astronomically higher. In New York, a studio apartment can cost around $2,500 per month, while in San Francisco, the cost of living can exceed the median income level.

Conclusion: Jobs, Not Minimum Wage

Louisiana, facing one of the lowest costs of living in the country, does not need a minimum wage hike. Instead, the state needs to focus on creating more job opportunities to help citizens thrive.

Similarly, cities like San Francisco and New York do not need a minimum wage increase. They need to address the underlying issues that make these cities unlivable, such as political mismanagement and economic policies that do not support the needs of the residents.

The minimum wage is often seen as a quick fix to economic problems, but it is important to recognize that it is merely a band-aid on a much larger issue. Addressing the economic policies and political actions that create unlivable conditions is crucial for real improvement in people's quality of life.