To the editor
Re: "Wage war," Jan. 13.
I read this article with keen interest, though I was saddened that someone wrote to Premier Christy Clark saying, "You are restoring the faith of a whole generation!" (re: the minimum wage increase). This young person's faith is misplaced, and I feel sorry for them. The increase is one of a long list of well-intended misadventures by government that hurt the very people who need help most.
So what's so wrong with a higher minimum wage?
At first glance it seems like a boon, but then the least skilled are thrown out of work. Bruce Ralston says the minimum wage is an "affirmation that your work has value," but the other side of the coin is that it's a legal affirmation that unless your labour is worth $10.25/hr, then it is without value, indeed, illegal.
Next, employers take measures to avoid hiring people such as using temp agencies, under-the-table work, use of machines, doubling of employee responsibility, anything to remain competitive. The most obvious solution, now that consumers think they have more money, is to raise prices. The cost of living goes up. Same difference, you say?
Actually we're worse off since the same amount of money is shared between fewer people. Finally, with the rise in prices and costly adjustment period for business, there's less capital for investment than before. The economy slows. The people cry out for government to help raise their standard of living, and history repeats.
Perhaps the Fraser Institute economists have a point after all.
Mike Maxwell, Vancouver
