With the current push to raise the minimum wage in B.C. to $15 an hour, one might question why? Why should we raise the wage?
The most convincing argument in favour of raising the minimum wage is the fact that at the current rate, minimum wage earners, unable to keep their income at par with the cost of living, are living below the poverty line.
The increased wage will put more money in the pockets of low-income workers, who are, according to Statistics Canada, 59 per cent adults, age 20 or older.
One might then wonder if companies will lay off workers due to higher wages. Studies have shown in cases around the globe, though, that with the graduated increase of minimum wage there has been virtually no effect on the unemployment rates in the given area.
Also, with the hike in minimum wage, there is a reduced turnover among low-wage employees. These declined turnover rates constitute a net positive for businesses, for high turnover rates increase training costs and result in lower productivity.
Another supporting argument for the increased minimum wage suggests that with raising the minimum wage, one is putting more money into the hands of consumers most likely to spend more due to their increased income, creating a ripple effect which filters more money into to the economy. This elevated demand for goods and services tends to stimulate the economy, which, in turn, creates more jobs.
With the benefits in full view, one can confidently take a step across the street towards the decision of increasing minimum wage to $15 an hour, proclaiming, “Raise the wage!”
Joelle Heyde
