Quote:
Originally Posted by Harry Lime
Absolutely nothing happened with the initial raise of $1 last October. There are only two ways that people are going to lose their jobs over a higher minimum wage. The first is if the business closes it's door entirely. Capitalism would suggest that if this happens, then the void created in whatever business this is would be filled somehow to satiate demand. The second is that a business would have to let people go to 'trim the fat'. If you are working in a minimum wage setting, I'm sure that fat has been trimmed long ago. All of this is just a simple caving to political pressure. Pressure that is not coming from the electorate.
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The one dollar raise was probably livable for businesses like this, but they're looking at the raises heading out to 2018.
You are missing a point here by saying that capitalism states that if one business dies another one will pop up and employ people and be profitable.
But what they're aludding to is that this business sector can't survive with the outside of Canada competition, so if one of more business dies, nobody is going to step into the void to take its place if there's no way to make money on it, and too much uncertainty.
We've seen it in the manufacturing sector in Canada, when those plants go down, for the most part, there's nobody eager enough to got into that business unless it becomes government subsidized.
Captitalism states not only on a business wide concept, but on a industry segment wide concept, that if the business model can't be competitive, not only does the business die, but the sector will die.
The only way to save a market segment in the face of international competition where wages are lower, or manufacturing is cheaper overall, is to hammer a maple leaf stamp on the product and charge more for it, and hope that people are patriotic enough to spend the extra dollars on a made in Canada product.
But frankly when I go to the grocery store to buy a head of lettuce or an apple, I don't care about where it comes from. Does it taste like Lettuce or an apple, and is it free of brain parasites.