Raising the minimum wage can be both a good thing and bad thing for Canada but it may not be necessary according to the statistics. According to the Toronto Sun, the vast majority of minimum wage workers aren’t poor. The main reason why government implement price floors on wages is because they believe the free market will not adjust for externalities. With over 65% of the workers as non-primary breadwinners, the minimum wage rise may not be required. 85% of the workers do not live in low-income households (Statistics Canada) and a vast majority are young workers living with relatives. As a result, rent and support does not seem that huge of an issue. Furthermore, raising the minimum wage will create a deadweight loss on the labor market. As …show more content…
For the employees on the other side of the statistics, there are many other alternatives to assist in paying their bills. One way is to provide a larger tax-break. However, most workers need the money week-to-week, not just at tax return time in April. Another tactic businesses will do it push the cost over to consumers. That though, will lower the demand and possibly create cyclical unemployment in the economy. Another possible policy the government can implement is a increase in tax credit. In Ontario, you can claim a tax credit on rent paid. An increase in this will mean that it will be easier for employees to pay their rent and take the stress off Canadian workers. For families with children, an increase on the Canadian Child Benefit (CCB) will help families recoup some of the costs of extra-curriculars and programs. A popular strategy would also be to steal from the rich and give to the poor. The government can easily provide a “wage subsidy.” For every hour worked, an additional subsidy can be given to the workers. That way, it is almost like raising the minimum wage but without the deadweight