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Ontario gets it right with move to higher minimum wage

The Globe and Mail publishes a commentary by Jim Stanford (Harold Innis Industry Professor, Economics) about Ontario's plans to raise the minimum wage to $15 an hour over the next three years.

Jun 30, 2017

The Ontario government's decision to raise the provincial minimum wage to $15 an hour by 2019 has set off a storm of predictable criticisms. Higher wages will, it is said, result in job losses, raise consumer prices and will do little to help low-wage workers. One constituency that has mostly declined to join this chorus of boos has been professional economists. What is the view of research economists on the consequences of this interference with the market mechanism?

A generation ago, most economists believed that minimum wages constituted a classic parable of self-defeating interventionism – a well-meaning attempt to dictate higher wages only reduced employment, thus hurting the very workers they were supposed to help.

To read the full article go to The Globe and Mail website.