The Pros And Cons Of Raising Minimum Wage

Minimum wage’s use was always to provide a single male with enough resources to live in that age’s society. As the prices of our resources increased, minimum wage increased to accommodate these people. However now, the Ontario Provincial government has decided to raise the minimum wage to $15 per hour to help out single parents trying to make ends meet. This was the primary factor in raising the minimum wage and was a compelling argument that urged the Provincial Parliament to vote in favour of this raise. This decision has both its positives and negatives that must be discussed, this policy was created with good intentions, however, there are too many flaws in minimum wage that must be addressed.

An increase in minimum wage does not really

The decision to raise minimum wage by the Ontario Liberal Government and their leader Kathleen Wynne, had been passed off as a vote-obtaining scheme to lure in young voters. Many people disliked this decision as they thought [correctly] that raising minimum wage by such a large margin(21%) in such a short amount of time would cause inflation. In addition to this the Provincial government, instead of helping low-income, single-parent homes; they are giving more money to teenagers and young adults who often live with their parents. While raising minimum wage itself was not a drastic mistake, the amount that the minimum wage was raised by is the largest problem. The largest problem, occurred when the Ontario Government decided to raise the minimum wage by such a large amount. I do not think that the government was at fault to raise the minimum wage, however, they should not have raised it by 21% in just 2-3 years. Moreover, the time in which they raised the minimum wage was not ideal as many people would view it as an entrapment towards young

Employers will have to pay more for each employee. Therefore, to make sure that they are not constantly losing money, employers will simply not hire as many people to work in these minimum wage jobs. Many people have said that because of this massive rate of increase in minimum wage, corporations will have to get rid of 20% of their workers if they want to spend the same amount of money on employees in comparison to past years. Another large problem that occurs from the effects of this increase is that less people have the chance to earn more money once they move on from a minimum wage job. Even if there was no minimum wage increase, most workers would end up making 40.8% more than their minimum wage salary, as they gain work experience. Most people do not take minimum wage jobs as a long-term plan, so, their mobility decreases significantly. Another problem that is very pressing is that it became far more difficult for small businesses to pay their employees minimum wage. Large corporations such as Tim Hortons had to revoke certain benefits to “break even” from an economic standpoint. This means that small businesses with far less money than large corporations will struggle mightily to maintain a similar number of employees. The increase in minimum wage has many