A recent article posted last week caused the lasting debate over the raising of minimum wage in North America to once again resurface. The increase of BC’s minimum wage, like most other government actions, provides citizens of the province with both benefits and drawbacks. Having a steady source of income is necessary for survival in our current economy, however as stated in the article, enhancing the minimum wage requirement isn’t always simple.
Thriving in society by working full-time at a minimum wage job without falling below poverty line is an impossible feat, which is why raising wages has been such a vital issue among workers. Most employers presume that “such a wage increase could improve the standard of living for their employees”, “have a positive effect on employee retention”, and “help bolster the economy”, all which I agree with. However, I find the employers’ push for minimum wage increase ironic, as they would be the ones responsible for providing it.
As I have learned in Professor Gateman’s Microeconomics class the past week, having the government raise the minimum wage leads to more problems than solutions. As a government-enforced price floor, this increase would cause employers to discharge a number of new employees. Companies would rely on a smaller number of employees in order to save money, further causing the unemployment rate in BC to rise.
Undeniably, the differing yet valid viewpoints of North Americans is what has caused this discussion to span over decades. It is unknown when this debate will come to a sensible resolve, however I do believe the governments of both Canada and America will eventually determine a viable solution which can minimize unemployment as well as poverty.
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