Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Thursday, December 19, 2013

Minimum wage: What's good for the goose is good for the gander

Ontario's minimum wage has been frozen since 2010. It's the second longest period minimum-wage workers have gone without a raise since 1969.

Oftentimes discussions about how much and how often to raise the minimum wage get positioned in relation to potential harm to business: how much can businesses bear to pay for an hour of labour before they are negatively impacted?

It is becoming increasingly clear that by keeping wages low managers are, in fact, undermining their own bottom line. An increase in the minimum wage can actually be good for business. Low-wage workers who have enough money to meet their household needs -- you know, like paying the rent AND buying food -- tend to spend every extra dollar they earn. Pumping that money back into the economy, through consumer spending, fuels growth and increases sales at local businesses.

In Ontario, a full-time minimum wage worker earns 25 per cent below the poverty line, effectively unable to make ends meet. An increase in their wages would mean a boost to both their individual well-being and that of the business they work for, reducing stress at home and boosting their productivity on the job. An undernourished worker who is worried about how to pay the bills at the end of the month is unlikely to be contributing all he or she could to the overall success of a business.

The financial health of individual workers and the overall health of an economy are inextricably linked. Robust economic growth cannot be attained without a hearty dose of consumer spending to grease the wheels of our economic engine. When businesses allow the wages of a growing share of the workforce to erode, they contribute to an overall decrease in the spending power of their own customers, slowing down economic recovery efforts from the 2008 recession.

Instead of starting with the question "what businesses are willing to pay?" why don't we start with how much people need to earn to meet their needs and actively participate in the economy. A $14-an-hour minimum wage would ensure a full-time minimum wage worker earns 10 per cent above the poverty line. At $14.50, a minimum wage worker would earn within 60 per cent of the average full-time worker in Ontario.

You know what else a $14 minimum wage could do? It could help ensure that every job a good job. Shouldn't that be the economic goal?

Original Article
Source: rabble.ca/
Author:  Kaylie Tiessen

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