JERRY AGAR

A small piece on minimum wage

Posted By: Jerry Agar · 5/19/2013 9:02:00 AM

Comments on this blog site have championed higher minimum wage and asserted that the workers at the LCBO deserve a raise. They seem not to have studied economics.

Just as we, as consumers, pay what we think a product or service is worth - shopping for price - employers do the same.

Raises are provided when the value of the work is improved through increased production. That could be because a person has more experience and therefore gets the job done more efficiently. 

If fewer workers could provide the same amount of sales, then those workers would be due a raise. But more pay for the same work is inefficient, and damages not only the LCBO, but the economy. That money has to come from somewhere, and it would result in less money spent on other, perhaps better things.

The LCBO employees are already paid above the standard for retail ...

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