Today Ontario lawmakers passed some new employment laws, including a $15 minimum wage by 2019.
This is great news for everybody, yet some groups seem to think it is bad. We have been hearing that they say it will have a negative effect on small businesses but this does not make sense to me, cause very simply things will end up costing more say in a restaurant, being as the staff are being paid more, but more people will also have more money cause they were working for minimum wage so they will be able to spend more which will just even it out.
Essentially the biggest gains for minimum wage workers will be they get a $600 a month increase in their monthly wage so the percentage they will have to pay for rent or even a mortgage will be less, giving them more free cash each month.
Aside from that, businesses have long be benefiting from the work of minimum wage workers even in terms of innovation, because as new innovative products and services are created minimum wage workers many times the one making the new products or services happen.
in pretty much any business there is new technology that will allow the entire business to become more efficient and actually reduce costs, and I will argue the this has always been the case in business especially in the last 20 years.
For example, a restaurant used to have to have a person as a cashier to take every single order. Now people can simply use their apps or the kiosks set up in the restaurant to order them. For the most part, as far as ordering at restaurants go the only reason a person is needed there is to make sure the proper people get the food, and essentially that is a problem that code be solved for restaurants by having locked boxes that robots put food into and that can only be opened by a code or a smart phone. Sure this creates a situation where someone entering a business would have to invest more heavily to get automation and technology set up and to catch up with the existing players but every industry ends up doing this.
If someone were to try and start an oil company nowadays the upfront investment for equipment would be huge…so this is nothing more than the same thing in history repeating itself….some industries get mature and new ones are created, its essentially evolution….everyone just needs to get used to it.