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.

Solutions

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 1 month ago

Next > < Previous

Related Solutions

15. Suppose the wage of unskilled workers is equal to the minimum wage. If a tax...

15. Suppose the wage of unskilled workers is equal to the minimum wage. If a tax on labor is levied on _____, the presence of the minimum wage _____. a. workers; does not affect the tax burden of workers b. workers; reduces the tax burden of workers c. firms; reduces the tax burden of firms d. firms; does not affect the tax burden of firms

The minimum wage is under hot debate not only among the media and politicians, but also...

The minimum wage is under hot debate not only among the media and politicians, but also among the economists. Some economists claim that a rise in the minimum wage will not result in job loss. Others argue that increasing the minimum wage will lead to large unemployment. a, Explain it with graph why the imposition of the minimum wage would generate unemployment under perfect competition. b, Some researchers who find no unemployment effect of raising the minimum wages appeal to the...

Analyze the impact of an increase in the minimum wage from the current level to $15...

Analyze the impact of an increase in the minimum wage from the current level to $15 per hour. How would the following be affected? a. employment of people previously earning less than $15 per hour b. the unemployment rate of teenagers c. the availability of on-the-job training for low-skilled workers d. the demand for high-skilled workers who are good substitutes for low-skilled workers Review the mechanics of price floors and price ceilings. Why does a price floor lead to surpluses?...

Is the minimum wage a living wage? Under what circumstances would a minimum wage be a...

Is the minimum wage a living wage? Under what circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor? Should the government enforce a minimum wage? Should the government implement a living wage?

Ontario passed legislation to increase Ontario’s general minimum wage from $11.60 per hour to $14 per...

Ontario passed legislation to increase Ontario’s general minimum wage from $11.60 per hour to $14 per hour on January 1, 2018 and then to $15 per hour on January 1, 2019. Increases in the minimum have always been contentious with business arguing against them. In October 2006, the Economic Policy Institute (EPI) in the USA released a formal statement titled "Hundreds of Economists Say: Raise the Minimum Wage" signed by 659 economists including four Nobel Prize winners in Economics and...

Using the diagram above, suppose the minimum wage was increased to $15 an hour. The results...

Using the diagram above, suppose the minimum wage was increased to $15 an hour. The results would be: Group of answer choices 18.3 million people would be employed 1.3 million workers would lose their jobs a shortage of 3 million workers A surplus of 1.7 million workers

Discuss the minimum wage. Specify the benefits and costs of the minimum wage to the economy....

Discuss the minimum wage. Specify the benefits and costs of the minimum wage to the economy. Under what circumstances will most economists support minimum wage laws? Justify your answer.

Explain the characteristics of an "effective" minimum wage. What is the argument for the minimum wage?...

Explain the characteristics of an "effective" minimum wage. What is the argument for the minimum wage? What is the argument against the minimum wage?

A. Minimum Wage The non-economist’s view of the minimum wage seems to be that it forces...

A. Minimum Wage The non-economist’s view of the minimum wage seems to be that it forces greedy employers pay poor workers more money, making all workers better off. The “conventional” economic view of an increase in the minimum wage is that, as with most public policies, there are winners (those unskilled workers who keep their jobs and earn more) and losers (those workers who lose their jobs). What is the “unconventional” view and how does it alter that calculus of...

Discuss the minimum wage. Clearly identify the benefits and costs of the minimum wage to the...

Discuss the minimum wage. Clearly identify the benefits and costs of the minimum wage to the economy. Under what circumstances will most economists support minimum wage laws? Justify your answer.

Subjects