Whenever you read the opinion of economists of a financial expert on the minimum wage issue, you might have the idea that the final results are well comprehended and equivocal. The people who criticized the hike of the minimum wage by Ontario on January 1, 2018, from %11.6 to $14 per hour may have made use of traditional economics to draw their conclusions and predictions of a particular economic disaster by plunging the labor market. It is pretty evident that the proponents of the move will have a view that is opposite.
They will argue that the hike in the hourly minimum wage for the Canadian worker is set to stimulate economic growth by putting more funds in the pockets of the poorest who will eventually pump it back into the economy whenever they spend. Despite multiple research inferring to support this varying schools of thought, the outcome is almost uncertain. The minimum wage issue has been entangled by a lot of emotion, politics and it’s also compounded by external factors that are caused by the economy. World-renowned economists from developed countries are enthralled by what is turning out to be a real-life experiment which is significant and very radical.
Ironically the real-life experiment is being conducted using the Canadian economy with the guinea pigs being the Canadian people. David Green, who is an economist from the Labour Party notes that the minimum wage increase of 21% is so steep that no one can ever be certain about the impact it will have on the economy in the long-term. Most of the country’s economists and even the ones who hail from the leftist movement have expressed their worries about how fat the minimum wage in Canada is going up according to Green who serves as a full professor for the University of British Columbia.
Green has committed his life and publications to how a price hike in the labor market affects other parts of a country’s economy. Although some may argue that this increase in minimum wage is only happening in one province in Canada, Ontario also happens to be the most industrialized and the province with the highest population in all of Canada. Whatever result the hike will have on the Ontario economy whether economic growth or recession, that is undoubtedly going to impact on the entire Canadian economy. One of the most popular narratives that are being perpetuated in Canada is the widening of the gap between the rich and the poor which Canadians have shown their displeasure within multiple polls.