Chapter 8

Article:http://www.cbc.ca/canada/nova-scotia/story/2009/04/01/ns-minimum-wage.html

The increase of minimum wages in Nova Scotia on April 1st are just one of the three raises the government is going to provide for them. The minimum wage, $8.10, has increased by fifty cents, making the current minimum wage $8.60. With what's happening in other provinces, the government hopes that this raise will bring Nova Scotia in line with them. It was only two years ago that 36, 400 employees have been working for less than $8 an hour, and another 47, 600 worked for none over $10. In addition, considering the fact that the number of people working for a minimum wage has increased in the last few years, this increase in minimum wage will definitely create a positive impact on them. By fall of 2010, the minimum raise is expected to reach up to $9.65.

This article and the content in the textbook is similar in a way that wages in Canada are in discussion. Wage controls in Canada are only a temporary basis. Companies are allowed to increase wages and give raises to individuals, but the provincial government is in control of the wages all in all. Limits are made so that rapid wage and prices increases won't happen. The increase in the minimum wage for Nova Scotia will result in a stimulation of the economy. The income increase would encourage people to spend more. The more spending going on, the more it will benefit the economy. In addition, the relationship between unemployment and inflation is also discussed. The increased wages would result in higher employment rates, and that would result in a higher inflation rate.

Not only will the minimum wage raise increase spending, it will also create incentive for people to look for jobs as well. This incentive will create a decrease in unemployment. Even though fifty cents may seem little, this may help an individual, particularly the students who are entering the workforce, and will benefit them in many ways in the long run. On the other hand, the increase in wage may cause the employer to create products with poorer quality with the same price in order to compensate with the money loss. With Canada's current recession, I hope the increase in minimum wage will ultimately help the economy.