The Arkansas Minimum Wage Experiment

Category: Business/Finance/Economy

I have read reports saying that the American State of Arkansas (My Mom lived in Arkansas for awhile a long time ago) is experimenting with what experts are calling “The Highest Effective Minimum Wage” on the continental United States.


The idea behind the economic experiment in Arkansas, as I understand it, is to determine whether the high minimum wage will raise minimum wage workers out of poverty or whether it will derail the State’s economy.

The figure that is being tossed around for the Arkansas experiment is reported to be $11.00-per-hour and this is reportedly an incrementalism that will bear full fruition by the year 2021.

The humorous side of this story (as far as I am concerned) is that somebody has reported that once the minimum wage workers in Arkansas have reached their $11.00 per hour plateau, they will be earning almost 70-percent as much money as the “Median” worker in the state.

It is my opinion that if the “Median” worker in the state is making that low of a wage, then there is something drastically amiss with the State’s economy from the get go because, in my humble opinion, nobody can reasonably expect to do all the things on a wage of $11.00 per hour that others do on much higher incomes. (Things like supporting a family or saving money for college and other things like those.)

“But minimum wage jobs were never intended to provide all the necessities and are designed as entry-level jobs for folks just coming into the Jobs Market and are meant to be stepping stones to higher paying jobs in any market” some people are contending.

That is all well and good until one considers that even though minimum wage jobs are designed as temporary entry-level jobs for new workers, there are a hell of a lot of elderly folks and retired folks who absolutely depend on them to supplement their retirement incomes or their social security or whatever, and to those folks, minimum wage jobs are life saving — and an $11.00 wage cap may not be entirely exciting for them.

I know some business people who will tell you, “If they keep on raising minimum wages, I will be forced to lay people off or to find a way to buy a robot and replace some folks (Like some fast food restaurant chains have already begun to do) or I will have to go out of business altogether.”

I know that as a consumer, I am not ready nor willing to shell out $25 for a common hamburger at a fast food restaurant and if the minimum wages get onto an upward-sliding scale that has no ceiling in sight, I am sure that kind of inflationary effect is inevitable.

I hope that when people start getting their minimum wage increases they also start learning that customers like their food hot and fresh and they appreciate being made to feel as if they were actually welcome in the business places where some of these surly-faced, seemingly uncaring low wage earners are employed.

Although I don’t know how the welfare systems work in all the states, I am hoping that once minimum wages go on their upward spiral all across the country that a lot of the welfare systems start denying benefits to some of those minimum wage earners on the argument that they earn too much money to receive welfare. —- In my opinion, there is no need for American Taxpayers to start subsidizing welfare recipients who suddenly find their windfall in the unchecked upward spirals of minimum wage increases.

I know the Left Wingers will not agree with this at all since they seem determined to give away the store to all the eaters and takers who are first in line with their hands out for more and more freebies.

8 thoughts on “The Arkansas Minimum Wage Experiment

  1. I just Googled ‘The average wage in America’. The answer comes back as just short of $60,000 a year. $11 an hour, for a 40-hour week works out to $22,880 a year, much less than half the average wage. So I think that $11 an hour is completely acceptable as a minimum. 🙂
    (It is also slightly higher than the minimum legal wage in Britain)
    Best wishes, Pete.

    Liked by 1 person

    • Most of the minimum wage earners I have known (except for a few elderly workers) squander their wages, live beyond their means, frequent free food pantries, trade their food and other staple items for such things as beer, cigarettes and dope and are rarely, if ever concerned with actually doing the jobs for which they are hired … so the turnover is great … the workers undependable and much involved in chronic absenteeism … There is no plus side to a mandatory minimum wage. I think all work should be “At Will” and that wages should be negotiated between employers and prospective employees …and that government should get it’s nose out of the affairs of private businesses in regard to forcing set wage structures — There is no upside to a minimum wage law …. employers lose, employees lose and consumers definitely suffer setbacks.

      Liked by 1 person

      • I agree with you on this. In Pennsylvania and Delaware, both states are “at will” employment states. The Federal Minimum Wage Law is in place to ensure no one is unfairly paid (e.g., sweat shops, FoxConn, etc.) but doesn’t stop a state from putting laws in place that pay higher than minimum wage. In my opinion, minimum wage should be more dynamic, like credit card interest rates, and float up and down depending on how the economy is doing. For example, credit card interest is sometimes Prime + 3.99%. Minimum wage could be based on the Bond or Treasury market. Economy does well, wages go up, economy does poorly, wages go down. It’s not perfect, I know, but I’m just trying to assist the conversation.


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