Summation of Wynne's Minimum Wage Announcement
- Thread starter Murphy
- Start date
I wonder why the economy of Australia has not tanked.
Minimum wage: How does Australia compare to other countries?
Posted 30 May 2016, 10:51pm
http://www.abc.net.au/news/2016-05-31/national-minimum-wage-will-be-lifted-by-2.4-per-cent/7462914The Fair Work Commission has handed down it's annual ruling on Australia's minimum wage, raising it by 2.4 per cent to $672.70 a week.
It means an extra $15.80 per week for the 1.8 million workers who are paid the minimum wage.
It will apply from July 1 and equates to a minimum hourly rate of $17.70.
It's half the increase the unions wanted but double what the Australian Chamber of Commerce was calling for.
Australia: $17.70 per hour
http://www.abc.net.au/news/2016-05-31/minimum-wage-how-does-australia-compare/7461794
Minimum wage: How does Australia compare to other countries?
Posted 30 May 2016, 10:51pm
http://www.abc.net.au/news/2016-05-31/national-minimum-wage-will-be-lifted-by-2.4-per-cent/7462914The Fair Work Commission has handed down it's annual ruling on Australia's minimum wage, raising it by 2.4 per cent to $672.70 a week.
It means an extra $15.80 per week for the 1.8 million workers who are paid the minimum wage.
It will apply from July 1 and equates to a minimum hourly rate of $17.70.
It's half the increase the unions wanted but double what the Australian Chamber of Commerce was calling for.
Australia: $17.70 per hour
http://www.abc.net.au/news/2016-05-31/minimum-wage-how-does-australia-compare/7461794
"Australia shows why raising the minimum wage doesn’t always fix poverty
As of July this year, the lowest paid full-time adult workers in Australia receive AUD$17.70 per hour, which is roughly $11.16 in US dollars...
...Perhaps $11.16 sounds generous. But consider this: The Australian minimum wage is only 43% of the average full-time wage, down from 50% in the early 2000s...
...Interestingly, however, the number of people in Australia living below the poverty line—defined as half the median wage—remains comparatively high by OECD standards: It’s still at around 14% of the population, which is almost exactly in line with the US.
People who are unemployed or under-employed have found themselves increasingly left adrift by an underfunded welfare system and an ever-tightening array of low-income tax concessions. This is a reminder that the minimum wage is, of itself, not a catch-all panacea for poverty."
https://qz.com/747814/other-countries-have-sorted-out-their-minimum-wage-woes-why-not-america/
As of July this year, the lowest paid full-time adult workers in Australia receive AUD$17.70 per hour, which is roughly $11.16 in US dollars...
...Perhaps $11.16 sounds generous. But consider this: The Australian minimum wage is only 43% of the average full-time wage, down from 50% in the early 2000s...
...Interestingly, however, the number of people in Australia living below the poverty line—defined as half the median wage—remains comparatively high by OECD standards: It’s still at around 14% of the population, which is almost exactly in line with the US.
People who are unemployed or under-employed have found themselves increasingly left adrift by an underfunded welfare system and an ever-tightening array of low-income tax concessions. This is a reminder that the minimum wage is, of itself, not a catch-all panacea for poverty."
https://qz.com/747814/other-countries-have-sorted-out-their-minimum-wage-woes-why-not-america/
How about this: Every time the minimum wage is increased, payroll taxes also increase for the employer. Employers are not going to simply "absorb" the extra costs so he increases his charges to compensate. After all, businesses are in business to make a profit and while they may absorb some of the costs, it simply doesn't make economic sense to absorb all costs related to wages. So, it means either increasing his costs or laying off workers - pure and simple.
He too must purchase goods and services which, in turn, also increase in costs due to wage increases and he simply can't absorb those as well. Again, it doesn't make economic sense. Why would you stay in business if your profits are going down each and every year?
So really, does anyone truly benefit? The low income earner may get an increase but then also has to pay for that increase in groceries or whatever goods or services that need to be purchased.
So, in the end, who really wins? No one. The cost of living continues to increase for everyone, including those lower income earners.
But there are those who think that "profits" are evil and that businesses need to absorb all costs not matter what. Guess they don't have a clue how a business actually operates. BTW, most businesses in Canada are small businesses who can't afford to absorb these costs on a regular basis.
JMHO
He too must purchase goods and services which, in turn, also increase in costs due to wage increases and he simply can't absorb those as well. Again, it doesn't make economic sense. Why would you stay in business if your profits are going down each and every year?
So really, does anyone truly benefit? The low income earner may get an increase but then also has to pay for that increase in groceries or whatever goods or services that need to be purchased.
So, in the end, who really wins? No one. The cost of living continues to increase for everyone, including those lower income earners.
But there are those who think that "profits" are evil and that businesses need to absorb all costs not matter what. Guess they don't have a clue how a business actually operates. BTW, most businesses in Canada are small businesses who can't afford to absorb these costs on a regular basis.
JMHO
Historically, the workers. Read Upton Sinclair's The Jungle if you want to see your Randian wet dream in action.
Back in the 60s my father owned a Marina
He used to work the whole long labour day weekend doing double shifts at no profit to pay his men for the monday off.
He had some fine words about government then.
Many of those types had their boats there.
He used to work the whole long labour day weekend doing double shifts at no profit to pay his men for the monday off.
He had some fine words about government then.
Many of those types had their boats there.
We are truly fortunate that workers are treated much better now, don't 'cha think? All I am saying insofar as the wage rate, it's a vicious circle and really, who benefits when costs go up as a result?
It's fine to say that the increases enables people to make purchases but are they really gaining anything when the cost of those purchases are more expensive.
JMO
They haven't gained a thing in 60 years since I've been watching, Dixie! As long as someone is earning the minimum wage it doesn't matter what it is, they'll still be poor. It amazes me how so many people can't get their heads around this.
Nobody self employed/piece workers gets paid holidays and according to stats roughly 15% of Canada's population.
Self-employed, total (% of total employment)
Maybe the $15 minimum wage in itself is harmless to the economy, but we have to remember that we live in Ontario where we have a rare combination of random factors that can compound each other that can potentially cause a perfect storm.
We already have many business's who have power bills that are crazy high causing them to consider moving their business's to New York or Michigan State which those states are encouraging, or closing their doors entirely. We also have the price of fuel which seems to be a factor to some while also having a Provincial Government that seems to be the anathema to small business's.
I may be wrong and i hope i'm wrong but it seems that sooner or later that something is going to "Snap!"
We already have many business's who have power bills that are crazy high causing them to consider moving their business's to New York or Michigan State which those states are encouraging, or closing their doors entirely. We also have the price of fuel which seems to be a factor to some while also having a Provincial Government that seems to be the anathema to small business's.
I may be wrong and i hope i'm wrong but it seems that sooner or later that something is going to "Snap!"
I thought someone might snap and go after Wynne. I see Ontario Hydro wants to up the rate. Just got a notice in the mail. It was supposed to go down.
I doubt that I would stick around if I had a business in Ontario. There are better opportunities elsewhere.
I doubt that I would stick around if I had a business in Ontario. There are better opportunities elsewhere.