Fourteen part two; Deeper

Did some research about the wages in this province.  It said that there was about 9% of the population that earned a minimum wage in Ontario.  It also stated that forty percent of those were over twenty-five years old.  It also said that about 30% of workers in Ontario earned between minimum wage and $14.25 per hour.  That means that about 30-40% of all employees in Ontario would be getting a wage raise by January 2019.  

That meant I could do some math with the numbers that were listed.  The numbers let me figure out how many workers there were in Ontario—about five million.  The bank of Canada suggested that the minimum wage hike to $15 per hour would cost the economy 60,000 jobs, or about 0.1%, which is a statistical rounding error.  Not much at all. 

Every dollar and hour wage increase amounts to about $2000 more money in the pockets of a worker.  So for minimum wage earners about $6000 dollars less additional taxes for about $4000 dollars more spending money. Nine percent of five million is 400,000 workers.  That's an extra $1.6 billion spent in the economy.  If we look at the 30-40 percent and just do an average and say 35% get and average of a $2 raise per hour that is 1.8 million people getting and additional $3000 dollars a year, or $5.4 billion into the economy.  

Money that is spent in the economy gets respent typically 2-3 times before it all goes into the wealthy or to the government, that would mean that the economy would get about 10-15 billion more dollars circulating in the economy. And think about it, this means that the government would get another 5 billion in taxes easily.  More government programs, health care and education and stuff like that, so more teachers and doctors and other higher income jobs.  

Additionally jobs that already earn people $15 per hour would have to rise to remain competitive so that probably means another 10-20 percent of the population getting another $3000 dollars a year and at would mean another $2 billion more injected into the economy.  

More people buying stuff might mean that there will be more jobs and not less, this would then mean further lower unemployment not higher unemployment.  

Of course, a minimum wage increase is not the best option for people and the economy in general.  That would be a guaranteed minimum income.  That would work best for everyone.  It would mean more money in the hands of the disabled and the elderly as well as the poor and the middle-class.  But this is better than what we had before.