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Increasing the Minimum Wage

2014 January 30
by Ian Welsh

Ontario is considering tying minimum wage increases to the consumer price index.

This is an ok idea, but the CPI is systematically fiddled to decrease stated inflation, because a lot of costs are linked to it.

A better way is to link it to productivity increases.

But the best way is to link it to increases in the top 1%’s or the top .1%’s income.

(There are better ways in a different, fairer economy.  The one I favor is to start it where the person who is at the bottom 10% is.  From then on increase it by the average of non-fiddled inflation, average income, and the top 10%’s income.)

4 Responses
  1. The Tragically Flip permalink
    January 30, 2014

    My pet idea is to link upper marginal taxation to unemployment. Every % of unemployment adds 1-2% to the top marginal rate(s). Spread the pain.

  2. Ian Welsh permalink*
    January 30, 2014

    Ha, that’s a good one. Although unemployment is pretty fiddled these days.

    Unemployment + wants a job and stopped looking + working part time cause can’t find full time

  3. S Brennan permalink
    January 31, 2014

    My $.02 is, sector wide agreements based on a % of AVERAGE income….NOT wage.

  4. Nick B permalink
    February 16, 2014

    Linking the minimum wage to the top 1% or top .1% of income would be a political statement, but I think it would have the mid income earners working in the private sector at a disadvantage over time. Similarly, recent calls to increase minimum wage to 15-18 dollars an hour ( depending to whom you listen to) are completely unrealistic, as such an increase will bring low/no skilled worker pay to the skilled/ experienced worker level, discouraging many people from seeking any carrier development . I would rather link the current minimum wage and the subsequent increases to it to the medium income.

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