imconfident

I sincerely believe that it is far more beneficial and far less costly to help a child build confidence than it is to fix an adult who has little or none.

Ontario minimum wage increase already causing problems

on January 5, 2018

Is this a surprise for anyone?  It certainly doesn’t surprise me.  Everything is happening as I expected.  Raising the minimum wage in Ontario was not a good idea.  It is unfortunate that people are struggling to make ends meet but this was not the answer.  Someone will always make minimum wage even if they raised it to $100 hour and they will still be at the bottom of the wage scale.

Increasing wages from $11.60 to $14.oo is a big jump and it sounds really appealing but it really won’t make any difference in the long run.  People may have an extra $50 a week in their pockets but where do they think this extra money comes from.  Businesses certainly aren’t covering this increase themselves.  It will come from changes within companies.  Prices will increase and there will be cutbacks.  That extra $50 will be needed to cover an increase in groceries, clothing and everything else with a price tag.

Small companies will be hit hard by this increase and some are already cutting out paid breaks and benefits.  Others will shorten hours which will result in smaller paychecks.  And of course some companies will be forced to close causing employees to lose their jobs and be forced to survive on unemployment while trying to find work.  And what kind of burden will be put on the government and our taxes to support more unemployed people?

On the news this morning, they had great news.  Unemployment rates are down.  Yeah, this is wonderful for today BUT the minimum wage increase is predicted to cost Canada between 60,000 – 90,000 jobs by 2019!  So who wins?  Employees who have a bigger paycheque but spend it all because of increased costs?  Employees who make less money because their hours are cut back?  Employees who lose their jobs?  Companies who are forced to close because they can’t afford to pay more wages?  Seniors and others on limited income who have to pay more for products and services?  Personally I don’t see how anyone wins.

Following is an article that outlines the coming problems.  http://www.cbc.ca/news/business/bank-of-canada-minimum-wage-1.4469912

 

 


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