Again Rachel Notley’s Alberta government is managing to go smack dad against conventional wisdom.
When the economy is suffering, businesses big and small are struggling to be profitable and maintain margins, when unemployment in Alberta is approaching the worst in Canada, what does the Notley government do? Raise the minimum wage to $12.20 per hour with a promise over the next two years to take it to $15 per hour.
There is no question that hiking the wage will benefit workers at the lower end of the pay scale, but it will also put even more Albertans out of work as those companies struggling now to make ends meet in the slumping economy, especially small businesses, will take it on the chin and more than a handful will be forced to either close their doors or layoff workers.
This does not help the poor; it does not benefit companies that hire young workers such as students, and for sure in times of economic malaise does not do anything to boost the economy.
Granted those that get the wage hike will spend more, but it is anybody’s guess whether that will be enough to offset the job losses and layoffs that take place as result of the wage hike, especially in Alberta’s faltering economy.