The living wage, a polarizing concept defined as the minimum hourly wage a full-time worker must receive in order to be able to afford a normal standard of living, is being brought back into the national spotlight, this time in the form of protests in Quebec. After Alberta announced its plan to raise the minimum wage in the province to $15 by 2018, critics were vocal, citing future job losses and damage to small business owners as concerns. Proponents of the living wage, however, cite increases in the standard of living for the already employed, decreases in inequality for workers, and benefits for the economy in the long run as driving forces behind the movement to instate it. Let’s examine the facts and find out what could happen.
An increase in the minimum wage in Quebec, from $10.75/hr to $15.00/hr, would almost certainly increase unemployment in the province. This change in the macroeconomic environment, a macroeconomic force, pushes Quebec firms to re-examine their business models and trim down to become leaner by cutting jobs. At least in the short-run. As wages increase for unskilled workers, firms, then, are forced to adjust the wages of their skilled workers relative to the increase in the minimum wage. This results in more money in the pockets of consumers, which means more being spent on goods and services like shoes, electronics, and restaurant dining, and more money for companies. Higher revenues for firms and higher demand for their goods and services, then, means more employees needed by these companies to keep up with demand. Thus, more workers and labourers are hired, unemployment goes down, and most stakeholders are wealthier and happier than before.
With a result that seems to benefit all of society in the long run, why isn’t there unanimous, province-wide support? Besides the causes for concern already addressed in this post, Curtis Huang states, in his blog post on minimum wage changes in British Columbia, that increasing the minimum wage raises the standards and expectations of companies towards job applicants, meaning firms will demand workers with more experience, more references, and more qualifications (making it more difficult to get jobs). As well, he claims that companies will end up “charging customers more” through increased prices to offset the increase in their costs.
All the fears people have, of the uncertainty and the downsides, are all valid. Who wants to risk unemployment? Who wants to pay more for goods and services? Who wants a harder time landing a job? Nobody wants these things, but I strongly believe in aiming for greater societal benefit in the long term, albeit with short-term problems, rather than looking to fulfill our short-sighted desires for short-term satisfaction.
Word Count: 447
Thanks for raising the important issue of the living wage, discussing its implications and challenges. It’s crucial to address such topics to promote fairness and equality in society. As students and researchers, ensuring academic integrity is paramount, and tools like https://plagiarism.studyclerk.com/ can help uphold these values. By using their service, every student can verify the originality of their work, preventing unintentional plagiarism and maintaining academic honesty. Let’s strive for a just society and academic excellence hand in hand.
Across the world, living costs have risen dramatically — from food and fuel prices to housing and healthcare. Yet, in many places, wages haven’t kept pace. This gap has left millions of workers facing financial insecurity despite working full-time jobs.
The “working poor” are now a stark reality in both developed and developing economies. It’s a sign that something fundamental isn’t working in how we value labor and compensate people for their time and effort.
I found Chapman Freeborn, which created unique conditions for Secure private jet shipping for jewellery . They quickly organized the transportation that was so necessary for our company. Here the price fully corresponds to the level of services and comfort provided. I am very glad that I chose them as a partner for our company.