Opposition to minimum wage increase is shortsighted, unwarranted

By Letter to the Editor on October 17, 2018.

Regarding the Oct. 1 increase of minimum wage from $13.60 to $15, here are some figures from the Medicine Hat News story of Sept. 29.

1. A $1 per hour wage increase equals about $2,000 per year to a full-time hourly worker. Therefore an increase of $1.40 equals an increase of about $2,800 per year.

2. There were 7,800 workers in Medicine Hat and area earning below $15 per hour before the Oct. 1 increase.

For discussion purposes, assume only half of the 7,800 workers receive the full $1.40 increase because some of those workers were making more than $13.60 before the increase.

Multiplying 3,900 (half the 7,800 workers) by $2,800 per year yields $10.92 million gross income into the local economy. After deducting for income tax, CPP and EI witholdings, and other deductions, my guess is there will be $8-9 million per year spent in the local economy. This ignores the multiplier effect.

If you are a business owner in Medicine Hat and area, aren’t you trying to get a part of that money spent at your business?

I believe the opposition by some businesses and the Medicine Hat and District Chamber of Commerce, who fear the increase in minimum wage, is short-sighted and unwarranted, as shown by the numbers above.

Gregory R. Cote

Irvine, Alta.

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