Comment 40041

By A Smith (anonymous) | Posted April 22, 2010 at 00:15:26

grassroots, Ontario and the other provinces have spent the last few years setting artificial minimum prices on labour. In contrast, Singapore's government allows employees to decide the wage he/she wants to work for.

Take a look at the unemployment numbers from each country and then tell me what policy is better at producing jobs for people...

http://www.indexmundi.com/canada/unemployment_rate.html

http://www.indexmundi.com/singapore/unemployment_rate.html

If you want to stand up for the rights of workers, you should be in favour of allowing them to decide the wage level they want to work for. This way, wages can fall when demand for labour is low, thereby decreasing the need to fire people.

If it was found that certain people still couldn't earn enough to get by, then the government could provide tax credits to help them. In this case, the employee will feel as though he is earning a healthy wage, the employer will be able to produce more goods and services and the overall economy will produce more tax revenue to the government. When people are unemployed altogether, you end up with some people doing all the work and others doing nothing.

All the minimum wage does is price labour above its true value to employers, much like a tax. When you tax something, people and businesses use less of it. If you want business to use lots of labour, then it should be tax free, which would mean removing the minimum wage altogether.

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