The dawn of the New Year had good news for the minimum wage class. The minimum wage pay hike from $11.60 to $14 per hour came into effect from January 1 in Ontario. The trade analysts predicted that the move could doom the economy. The employment is in dire straits and cannot be reviewed by this pay hike.
But, the supporters of this pay hike think on the opposite lines. They feel that it will give the boost to the economy. The poorest of the poor are the people who would be spending the money they earn. Hence, it will give a boost to the economy.
The economists are skeptical about how this steep 21 percent increase in the wages will actually turn out to be in the near future. All other economists around the world are having a close watch on how this will pan out. Even though this steep increase in hourly wages is happening only in one state, this is the most populous state in Canada. If this move damages the economy, then it can cause huge damage to the nation’s economy.
It is the earliest time to predict if this minimum wage increase in Ontario is a success or not. But, this will turn out to be a lesson for other Canadian jurisdictions.