Wednesday, August 29, 2012
Why higher wages make economic sense
Larry Hubich and Erin Weir, Opinion, The Leader-Post:
Recent Saskatchewan government news releases trumpet record numbers for wholesale trade, building permits and exports. But as Labour Day approaches, we should consider that many Saskatchewan workers do not share in the prosperity they create.
In particular, our province soon will have the embarrassing distinction of Canada's lowest minimum wage. On Sept. 1, Alberta's hourly minimum rises to $9.75, leaving us last at $9.50.
Our province should aspire to have Canada's best minimum wage. Specifically, we propose phasing in a minimum wage of $11, which would match Nunavut as the highest of any province or territory.
The government should index this to inflation to help protect low-income earners from having their buying power eroded by Saskatchewan's rising cost of living.
Some of the benefits of a fair minimum wage are obvious. It means more much-needed income in the hands of low-paid working people. Increasing the wages of workers at the lowest end of the income spectrum would also add to consumer spending in the province, helping local businesses and other participants in the economy.
More than any other group, low-income earners spend their money in their communities. For example, they're far less likely to make foreign investments or to travel abroad. Increasing Saskatchewan's minimum wage would bolster the provincial economy.
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