Monday, March 23, 2009

Ch 16 Blog :)

http://www.edmontonsun.com/News/Alberta/2009/03/05/8633386-sun.html


Summary:

In the time of depression, Alberta strives to protect their minimum wage as much as possible by increasing the minimum wage by 40 cent. So it would be from $8.40 going up to $8.80, which would make Alberta the second highest minimum wage of any province in Canada. But this fame won’t last, according to the official, because once their plan goes through, within a few months Ontario, Quebec, Saskatchewan and Newfoundland will all have a higher minimum wage. Ontario would be leading with $9.50. This plan was inspired not only because of the depression, but also because Alberta claims that majority of the population of Alberta is earning more than the minimum wage, and they do not want to forget about the lower-income occupations.

Connection:

In Chapter 16 it talked about wages which are not usually raised often, but decrease due to tardiness and such. So with such a large scale change in wages, every company that is giving a minimum wage would have increase their expenses, especially when they have a large amount of workers working under them. If there were 100 workers, then their expenses would increase by $40 and that would be very bad if the company was very tight with their cash.

Reflection:

Alberta tries to stimulate the economy by raising the minimum wage, and by doing this it also encourages other provinces to do the same. But with the minimum wage is raised, his also raises a question, as the people who are earning the minimum wage to gain a raise then those already earning a higher wage also get a raise or remain the same? You can’t say it’s fair to only increase those who have lower wages. But at the same time, it is almost impossible to raise everyone’s wages.