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. 10-9
