Joining the world’s QS and CSN, the Parti Québécois is now calling for the minimum wage to be raised to $18 an hour, hitting inflation hard.
Bad idea or progressive?
Wages cause inflation
The idea of raising the minimum wage would be interesting if each domino that fell were not part of a larger economic system that precipitated the others in the fall.
The question of minimum wage cannot be limited to the fact that it is impossible to live decently on $14.25, $15 or $18 an hour. In fact, all salaries are set on a relative basis.
How much is one level “worth” compared to another?
What should an unskilled worker be paid as compared to a skilled worker?
How much is a worker’s experience worth after 20 years compared to a fresh graduate’s expertise?
The minimum wage affects all wages and, by extension, all consumer prices. Also, the various bonuses given during the pandemic to encourage essential workers in grocery stores have a direct impact on food prices.
Live with dignity
If raising wages only raises inflation, how can we provide a better standard of living for low-income earners?
Let’s start by providing effective and affordable joint solutions, especially by controlling transportation costs.
Next, let’s control housing costs. For many low-wage earners, rent is a costly item, sometimes wasting more than 50% of their income.
Before raising the minimum wage, the government should establish a tenancy registry. A landlord may continue to raise his rent, but the increases must be properly justified to avoid renewal by the less affluent.
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