wage

Minimum wage was a popular topic a few years ago when the BC government increases the minimum wage to $10.25. In this article, five other provinces have raises their minimum wage on October 1st.

“Fight for $15” is also discuses in the article.

Since the federal election is coming up, NDP Leader Thomas Fight-for-15Mulcair sets the goal in 2019 to increase the federal minimum wage to $15 per hour. These politicians believed that by raising the minimum wage, they are pumping the money into the local economy. If a family’s average income increase, the family is more likely to dine out often or purchase more groceries.

Formal-Dining-Restaurant-POS-System

I do not agree with the stand this article take, I believed that these politicians understand that raising the minimum wage to $15 will harm the economy. Food in general has an inelastic demand. Since food is not considered as a luxury goods, increasing the minimum wage would not increase the demand of groceries.

Smaller business cannot afford $15 minimum wage, these businesses would stop hiring, which causes unemployment rate to increase. Part time jobs will be harder to find since less jobs are offer to the employment market. Canadians should know that politicians often make promises they cannot achieve. Therefore, “Fight for $15” movement will affect Canada negatively as a whole.

Source:

http://www.theglobeandmail.com/report-on-business/economy/five-provinces-hike-minimum-wage/article26618941/