[Dion]

Breakenridge: NDP intentions on 'affordability' contradict reality

The NDP has, for example, mused about somehow making gasoline prices — which are 30 to 40 cents per litre higher than a year ago at this time — more “affordable.” It’s unclear exactly how they would do so, and any sort of market intervention might create more problems than it solves. But none of it erases the very awkward fact that the NDP’s own carbon levy very intentionally made the price of gasoline more expensive.

While some might only see a tenuous connection, to the NDP it’s rather straightforward: “Based on a 40-hour week, someone making the increased minimum wage will earn $2,912 more per year.” And, yes, a pay raise can make it easier to afford things — assuming that nothing else changes, that is.

When it comes to minimum wage, things are never that simple.

To put the NDP’s words another way, as of Oct. 1 many Alberta employers now face nearly $3,000 in new costs per employee. Where is that money expected to come from? Even if we ignore all of the warnings about potential job losses and cutbacks to hours of work, minimum wage defenders would be hard-pressed to deny the likelihood of a price increase.

If a government policy results in an increase in the costs of goods and services, then in what way is it making life more affordable? For those fortunate enough to keep their jobs and hours intact, any gains in earnings may be largely erased through higher prices.

For those who live in poverty but do not earn minimum wage, the policy could turn out to be even more regressive. “Regressive” was the word used in a 2015 study out of Stanford University which concluded that minimum wage increases produce a “value-added tax effect on consumer prices that is more regressive than a typical state sales tax.”

https://calgaryherald.com/opinion/co...radict-reality