Will a $15 minimum wage be good for Ontario? Two experts debate Armine Yalnizyan and Dan...

Will a $15 minimum wage be good for Ontario? Two experts debate
Armine Yalnizyan and Dan Kelly face off over the 
Liberals' proposal to raise the minimum wage to $15 by 2019.

Read the attached debate and say clearly who do you agree with, 
Armine Yalnizyan or Dan Kelly?  BE SURE TO EXPLAIN YOUR ANSWER 
USING ECONOMIC TERMS WE HAVE LEARNT SO FAR.

Expert Solution

On the basis of debate I agree with Dan Kelly that minimum wage should increase and it should be aligned with inflation based index so that workers get a fixed real wage and their purchasing power does not decrease. Besides, Dan Kelly's perspective to keep the issue of minimum wage out of politics is also not honored by the ruling party and in the wake of elections they announced it. The decision seems to help workers and it is good for them, but It is overall not good for Ontario, because it increases the cost of production and firms offset this cost by laying off workers. Here, layoff takes place of those workers who are not skilled or who were getting wages that were less than $15 per hour. As a result, unemployment increase in the Ontario. So, the minimum wage rule of $15 per hour, is going to hit maximum to those workers, for whom it is proposed as firms try to cover up the increased cost. Not doing so, may push them out of the market.

Rahul Sunny answered 9 months ago

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