Quote: Originally Posted by SirJosephPorter
VanIsle, I was surprised at the low minimum wage in BC. Low minimum wage in Alberta doesn’t surprise me. Considering that the whole province belongs to the rabid right, I am surprised they have a minimum wage at all.
Seeing that Sweden, a country often cited as a model of social democracy, has no official minimum wage laws either, it's ironic that you're essentially calling it rabid right.
Minimum wage is an essential part of the civilized society; it provides a floor, a protection for the lower class of the society, a minimum guarantee against unscrupulous employers. If we didn’t have minimum wage, people may literally starve in the streets.
Now you're calling Sweden uncivilized? It's often cited as the model welfare state, with an excellent public education system.
Third world countries like India or Somalia don’t’ have a minimum wage; I have no desire to join those august bodies.
Now Sweden, the home of Saab, Volvo, and Ericsson, just to name a few, is third world?
Also, there have been no studies to show that minimum wage hurts employment. If that had been true, we would expect unemployment of 25 or 30 % today, the minimum wage has been increased many times.
I'd read a few books on economics, and it's generally accepted that any kind of price floor or ceiling could potentially disrupt the market if the floor is above equilibrium price or if the ceiling is below the equilibrium price. However, if either does not cross the equilibrium price, then it has no effect anyway. So in conclusion, either it has no effect or it disrupts the market. In the case of minimum wage increases, the employer must decide to either raise the salary or lay the worker off. In many cases, he may decide to raise the salary, but it only takes one case of him laying the worker off for it to have a negative impact. And statistics aside, for that one worker, it truly will have a personal impact well beyond some university statistics textbook.
The recent increase in minimum wage in several provinces is good news for myriad of poor people, the single mothers working on minimum wage. I for one am proud o all the provinces which increased the minimum wage. Well done.
It makes for good politics, but not good economics. We need to learn from Sweden, Germany and others, who've managed to introduce social-democratic ideas not at the expense of capitalism, but as a supplement thereto.