Minimum wage is on the rise, but who does it benefit?
I have a strong opinion on raising minimum wage...DON'T! After so many years, and tonnes of case studies, why does the provincial government continue to insist that a legislated increase in minimum wage is necessary? Oh wait they don't, but they want votes!
Here are a few of the pros and cons as I see it:
-Minimum wage employees will now make $10.25/hr, meaning they will make $23, 210 per year if they work a 40 hour work week. (Please note that most mimimum wage employees don't work 40 hour work weeks.)
-All businesses that rely on minimum wage employees will have to increase their prices to make up the wage increase. A short (but not all inclusive list) of such businesses are: restaurants, movie theaters, gas stations, retail shops. That means that $8 movie, will now be $10.25. Same goes for that $8 burger!
-Only new employees will make the $10.25, anyone who makes more than that won't receive a raise. So when that burger goes up to $10.25/hr, they will have less spending power with their money.
-Some of those businesses who rely on minimum wage employees, won't be able to weather the increase in costs. So they will go out of business, so that means their employees will make $0 per hour, since they won't have jobs.
-We have just seen a perfect storm in the restaurant industry in BC. Adding HST, lowering the legal drinking limit, and a bad economy. Increasing minimum wage looks like another nail in the restaurant coffin.
-During an economic boom (as we previously had), we know that businesses paid more than minimum wage. So doesn't it stand to reason that the best way to increase minimum wage is to boost the economy.
-We all know that the best way to boost the economy is to increase spending. But if we reduce spending power of money, this slows the economy down. Hmmmm...so how do we increase minimum wage again?
I do believe that people should make more money, but that the best way to increase wages is through a strong and vibrant economy, not through government legislation. I'm so disappointed in our new premiere, that didn't take her very long. At least it's really clear on how I will now vote.