Ontario Premier Kathleen Wynne recently announced that the government would increase the minimum wage from $11.40 to $15 by 2019. Since the news of this wage hike came out, many have been in favour of it while others, mostly small businesses to say, have been perturbed by it. As any average student my age would be satisfied with this wage hike decision, I on the contrary, think increasing the minimum wage by almost $3.60 would be unjust towards small businesses and will in fact cause inflation in the economy.
First of all, as mentioned in the article on ‘Raising the Minimum Wage: Misguided Policy, Unintended Consequences’,“hiking the minimum wage can do considerable harm, most notably by de-creasing employment opportunities among low-skilled workers” (paragraph 4, line 2). Small businesses usually do not have a large net income and hire students or young …show more content…
“The possibility of price increases is very relevant to the question of whether the minimum wage is an effective instrument in helping workers from low-income households” (P.Murphy, Page 11, paragraph 5). If the minimum wage is increased, we would see an increase in the price of everyday consumer goods. This inflation will affect everyone not just minimum wage workers. If the prices go up, less and less people will be able to afford things even with the wage hike. Referring back to the article on ‘raising the minimum wage: misguided policy, unintended consequences’, it says that “Popular support for the minimum wage largely derives from the belief that it is a useful tool for boosting the wages of poor workers”. Businesses will need to increase the prices of their goods in order for them to make a profit, thus fueling inflation. Increasing minimum wage would mean an increase in the cost of products and services which will lead to an increase in the cost of living, thus nullifying any profit made through the wage
First of all, as mentioned in the article on ‘Raising the Minimum Wage: Misguided Policy, Unintended Consequences’,“hiking the minimum wage can do considerable harm, most notably by de-creasing employment opportunities among low-skilled workers” (paragraph 4, line 2). Small businesses usually do not have a large net income and hire students or young …show more content…
“The possibility of price increases is very relevant to the question of whether the minimum wage is an effective instrument in helping workers from low-income households” (P.Murphy, Page 11, paragraph 5). If the minimum wage is increased, we would see an increase in the price of everyday consumer goods. This inflation will affect everyone not just minimum wage workers. If the prices go up, less and less people will be able to afford things even with the wage hike. Referring back to the article on ‘raising the minimum wage: misguided policy, unintended consequences’, it says that “Popular support for the minimum wage largely derives from the belief that it is a useful tool for boosting the wages of poor workers”. Businesses will need to increase the prices of their goods in order for them to make a profit, thus fueling inflation. Increasing minimum wage would mean an increase in the cost of products and services which will lead to an increase in the cost of living, thus nullifying any profit made through the wage