Chapter 8 Blog

BC has lowest minimum wage, highest poverty rate
http://columbiavalleynews.com/2010/04/10/bc-has-lowest-minimum-wage-highest-poverty-rate/

Summary:
The BC Federation of Labor says that the minimum wage in BC is a national embarrassment. As Ontario increased its minimum wage on March 31, 2010 to $10. 25 an hour and on April 1, 2010, Nova Scotia’s minimum wage will rise to $9.20 and New Brunswick’s to $8.50 with another increase in September, which will bring it’s minimum wage to $9.00. The minimum wage for BC is still remain at $8.00. But B.C. government said that they can not afford to raise the minimum wage. The BC Federation of Labor suggested that B.C. government should raise the minimum wage to $10.00, it is a way to prevent proverty.

Connections:
The connecting between the article and Chapter 10 Stabilization Policy is linked by wage and price controls. In the article, it stated that each provinces is raising their minimum wage to prevent proverty rate, this is a kind of control to make citizen's life better in the economic depression. But B.C government's decision is also a kind of controling wage and price action. When the wage raise, the price of goods and services will also raise due to higher expenses by raising the minimum wage. By not raising the minimum wage, the price of goods and services will not be increase,which in this case is an anti-inflation act.

Reflections:
BC used to have the highest minimum wage at 2002, and the minimum wage keeped at $8.00 per hour for many years, now BC is having the lowest minimum wage within Canada. Increasing minimum wage has been proven to do nothing in regards to improving poverty levels. Employers that do pay minimum wage are often put into a situation where they have to let go of some workers in order to afford the higher wage of its remaining employees. Controling the minimum wages also is controling the prices of the goods in the market. I think they shouldn't raise the minimum wage during economic depression, this will worsten the situation.