CHAPTER 3 The Role of Government in a Market Economy
http://www.thestar.com/News/article/167451
On the international scene, minimum wage legislation first appeared in New Zealand in 1894.The first provinces of Canada to enact minimum wage legislation were British Columbia and Manitoba, in 1918. By 1920, four other provinces-Nova Scotia, Ontario, Quebec and Saskatchewan-had followed their example.
More presently, starting February, Ontario's lowest paid workers are getting a 25% an hour raise starting February; Labour Minister Steve Peters announced the minimum wage in Ontario will increase from $7.75 an hour to $8.00. Activists have argued the minimum wage should rise to at least $10 an hour to keep the working poor above the poverty line, but the Liberal government claims that would cause undue hardship to businesses.
In contact to Chapter Three, The Role of Government in a Market Economy, we noticed the necessity of income distribution in a free-market. Today, one of its main purposes is to protect non-unionized workers in unskilled jobs, although it can also influence, directly or indirectly, the level of compensation of other employees as well. But the concern is that will increase minimum wages really help to reduce poverty? The answer is an increase in the provincial minimum wage may help those with higher earning potential, but reduces employment for the lowest wage and lowest skilled workers. Increasing the minimum wage “ratchets up” all wages in all industries and reduces job opportunities for entry-level workers. In most provinces there are certain groups of employees (such as some farm workers and domestic servants) who are exempt from minimum-wage coverage. For these workers, increases in the minimum wage are ireelevant and do not aid their financial situation.
In conclusion, it is important that government sets a minimum wage so that it helps to reduce the level of poverty among the working poor although it may not be very helpful to help all the people are away from poverty. Personally, I would like to see the government increase it because most of us are working at minimum wage which is very low.
posted by Apple Z @ 2:59 PM
3 Comments:
Mmmmm... the minimun wage rise, but it does not mean that no-skill workers can getting better for their standard of living. the minimun wage rise because of the inflation rate rise, that means most of the commodities and energy cost rise their price. so the salary it rise just cover the cost what pepole will spend, or even can not cover it. the better way to help them is cutting tax rate for low salary people, becaus e whatever they get, they have to pay at lease 18% income tax and they also need to pay GST/HST. that will be a huge amount for them.
To enact minimum wage legislation is one of the roles of government in a market economy, because it can help the poor to improve their living condition in some extent. But it is not best best way, and should not become the best way. And in my opinion the best way to help the poor and to make a country strong is to pay more attention to education and science.In this way the productivity can improve and more material wealth can be produced, which will meet all the people's need.And then it is not necessary for the government to enact such a minimum wage legislation. ---from Jesse
I don’t agree with what you said because even though you increase the minimum wage doesn’t mean that the poor people or unskilled people would not get a job. Increasing the minimum wage would help the people with skilled jobs like being a teacher, waitress and etc. The only way to help the poor out is to cut out taxes because the poor cannot afford to pay 18% of what they earned and it wouldn’t be enough for the poor to use even though they are working for a few jobs to keep up their living.
Crystal Choi
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