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Ontario Raising Minimum Wage to $15, The Pros and Cons

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Late last year, Alberta’s NDP government has announced an increase in minimum wage. Their rate will become $12.20 an hour this October, which will increase by $1.40 an hour in October 2017,and finally the $15 minimum wage will take effect in October 2018. US cities are following the minimum wage increase such as New York, California Seattle and San Francisco. This will help the people who are currently earning minimum wage who are unable to afford basic necessities. A lot of people are having to go to this Website to find out more about loans and how they work so they can get one to afford their bills and are able to buy groceries.

Earlier today, Premier Kathleen Wynne and Labour Minister Kevin Flynn have presented to the public the reforms to rules governing workplaces in Ontario, with a minimum wage hike as the highlight. The increase will make the rate in Ontario go up from $11.40 today to $14 in January 2018 and $15 in 2019. This is a huge increase because at $15, a 40-hour-a-week minimum wage job would pay $600 a week or $31,200 a year, compared to $23,712 at the current level of $11.40.

Ontario is now the second province in Canada to bring in $15 minimum wage by 2019. If you are wondering where the other provinces are at, below are the rates across the country:

Alberta ? Currently, the minimum wage is $12.20 an hour, but it rises to $13.60 this year and $15 Oct. 1, 2018.
B.C. – $10.85 now and $11.25 or more later this year.
Manitoba – $11, with plans to raise it every year along with the rate of inflation.
New Brunswick – $11. Adjusted annually relative to the consumer price index.
Newfoundland & Labrador – $10.75 rising to $11 on Oct. 1, 2017.
Northwest Territories – $12.50
Nova Scotia – $10.85. Adjusted annually April 1 based on the consumer price index.
Nunavut – $13. Adjusted annually April 1. Ontario – $11.40.
Prince Edward Island – $11.25.
Quebec – $10.75, rising to $11.25 per hour May 1.
Saskatchewan – $10.72. Adjusted annually Oct. 1 relative to the consumer price index and average hourly wage.
Yukon – $11.32. Adjusted annually April 1 based on the consumer price index.

To understand the effects of the minimum wage hike, here are some of the pros and cons to consider.

Pros Cons
Raising the minimum wage would increase economic activity and spur job growth. Increasing the minimum wage would force businesses to lay off employees which will then raise unemployment levels.
A higher minimum wage would reduce government welfare spending. A minimum wage increase would hurt businesses and force companies to close or simply choose to outsource.
Increasing the minimum wage can help keep up with inflation. Raising the minimum wage would increase the price of consumer goods.
Improvements in productivity and economic growth have outpaced increases in the minimum wage. Teenagers and young adults will have more difficulty in joining the workforce. Experienced and educated adults will be more preferred.
Increasing the minimum wage would have a ripple effect, raising the incomes of people who make slightly above the minimum wage. If the minimum wage is increased, companies may opt to use machines or automated processes to replace service employees.
Increasing the minimum wage would increase worker productivity and reduce employee turnover. Raising the minimum wage would increase housing costs.
Raising the minimum wage would lead to a healthier population and prevent premature deaths. Raising the minimum wage would decrease employee benefits and increase tax payments.
Raising the minimum wage would increase school attendance and decrease high school drop-out rates. Raising the minimum wage would decrease high school enrollment rates and increase drop-out rates.
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