The Commonwealth Act derives its name in memory of John Locke, the most quoted political author by the Founding Fathers. Locke wrote extensively about the Commonwealth; how it functions and why. As the name suggests, a “common-wealth” might be depicted using the shape of a fountain, as the water (money) travels upward (wealth), outward and then downward (taxes), then back toward the center (income), in a cyclical manner.
The shape of a fountain emulates the ideal shape of a government, excluding imports and exports. Photo by IndiaMART used in accordance with the Fair Use Doctrine.
Subsidizing Minimum Wage is Superior to Raising It
In general, raising the minimum wage (as opposed to subsidizing it) disproportionately impacts small businesses compared to larger corporations. Oftentimes, larger corporations are able to afford raising it (via slightly raising the prices of their vast product lines, in multiple locations around the state, country, and/or world), while small businesses instead feel stress. Owners of small businesses may have to let employees go and work more customer service hours themselves in order to compensate, thus impeding their ability to tend and grow the business in other ways. Or, they may need to raise prices, which in turn drives customers to go to big box stores to save money.
Another issue with raising the minimum wage, as opposed to subsidizing it, is that, as businesses raise the prices of products in order to meet the cost, elderly, disabled, and impoverished Citizens who are on welfare or Social Security, have their purchasing power lowered. This is because they receive the same amount of income. This, in turn, puts society in a position where they then have to raise taxes, which makes workers then want more wages, which causes businesses to raise prices, which causes welfare to have be increased, and the cycle continues. In a nutshell, this cycle drives rapid inflation.
Ultimately, wage subsidization’s got what minimum wage advocates crave. If you’d like to learn more, feel free to read A Better Wage Hike by Oren Cass.
How to Subsidize Minimum Wage (without pissing anyone off)
According to ZipRecruiter, average CEO pay in Iowa is $134,017. So, let’s look higher up, to the income of CEOs for Iowa’s Managed Care Organizations (MCOs), for example:
– In 2023, Joseph Zubretsky, the CEO of Molina Healthcare, earned a total compensation of $21,491,723. This included a salary of $1,500,000, a bonus of $4,410,000, and stock awards of $15,500,092 (Rosanes 2023).
– Wild Willpower PAC was unable to find current data, however WellPoint’s CEO earned $17M in their first year with the job (Overland 2014).
– The CEO of Iowa Total Care, Mitch Wasden, is listed as the “Plan President and CEO”. According to Centene, his compensation is likely around $20 million/year (Centene 2025).
Although there are likely other places to look to find uber-wealthy Iowans, the point of all this is that (1) $20 million/year is a ridiculous amount of money, and (2) it is time to raise taxes on Iowa’s top earners.
A Rising Tide Lifts All Ships
Some argue that taxing the wealthy causes businesses to leave the state, however that is not necessarily the case. Here’s the thing: a wealthy person who lives in an impoverished community only has access to that which society produces. When society is prosperous, and top earners earn a little bit less, they will have access to better products, better service, and they will live among healthier urban ecosystems. A wealthy person living in a poor community thereby lives in a cesspool while surrounded by people who feel resentful, while a quasi wealthy person who lives in a prosperous community is surrounded by a happy, healthy community who feels mutual appreciation. Thus, a rising tide lifts all ships.
What the Commonwealth Act will Fund
Here’s what the Iowa Commonwealth Act will fund:
1.) Subsidize minimum wage to $20/hr. for all Iowans;
2.) 20% increased subsidies for caregivers who take care of the elderly and the disabled. This means all of Iowa’s caregivers will earn 20% more than they currently earn after the Iowa Commonwealth Act goes into effect. New hirees must be paid at least $24/hr. (20% more than the new minimum wage). This will:
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- Reduce turnover within the healthcare industries;
- Reduce the severe stress so many of Iowa’s caregivers have been experiencing; and
- Reward some of the most thankless and noble jobs in Iowa.
3.) Funding the initial two years of Civilian Restoration Corps.
References
IndiaMART. Indoor Water Fountains. https://www.indiamart.com/proddetail/indoor-water-fountains-11067073862.html.
Centene. 2025. Centene Subsidiary IOWA TOTAL CARE awarded statewide Medicaid contract. Centene Corporation. https://investors.centene.com/2024-09-04-CENTENE-SUBSIDIARY-IOWA-TOTAL-CARE-AWARDED-STATEWIDE-MEDICAID-CONTRACT.
Overland, Dina. (April 3, 2014). WellPoint CEO earned $17M first year on the job. Fierce Healthcare. https://www.fiercehealthcare.com/payer/wellpoint-ceo-earned-17m-first-year-job.
Rosenes, Mark. (November 22, 2023). Which health insurance CEOs get the highest pay? Insurance Business.