I like that they're going with a slightly more sensible rollout plan in New York. That should have been the way it should have been done in Ontario. That being said, I wonder how the more economically stunted regions of Upstate NY will do at $15, as the economic gulf between New York City and those other regions is even larger than in Ontario. Those areas have hollowed out even faster than our rural areas here. Australia being said, is also a much more expensive place to live in nearly all indexes. Food and housing especially, is much more expensive than it is in Canada.
Not to necessarily make it a race to the bottom, but there are plenty of neighboring regions beyond New York (especially Quebec even with their hikes, Ohio and Michigan) which will still have far lower costs of living and wages than Ontario- is an endless race against inflation the best way to solve cost-of-living issues- or will it make areas outside of Toronto more economically stymied? Ontario doesn't sit in a bubble, nor does it compete against New York and San Francisco alone.
The New York State plan takes all of NYC to $15USD per hour, but the rest of the state to $12.50USD then a review period before going higher.
But worth saying $12.50 USD is $16.29CAD as at the exchange rate tonight.
Ohio is still lackluster, but Michigan just approved a jump to $12USD by 2022 which is $15.64CAD
Chicago is at $13USD in 2019 which is $16.94CAD
I think the numbers I'm suggesting are fairly conservative and wouldn't not affect our competitiveness.
One has to consider what industries we compete in, as well as non-wage costs from healthcare, to other payroll taxes, to property tax and energy costs etc.
One of the main issues facing cost-of-living in Toronto is rent, and that is a separate category to tackle. The issue is that housing has been detached from the rest of the economy and has become an investment vehicle.
While I agree there are issues in the housing market which the minimum wage cannot fully redress, I'm also not a fan of government subsidizing low-wage employers via housing benefits.
I certainly prefer that to homelessness etc.; but I see it as a less than ideal result.
While I would support measures to reduce residential real estate as an 'investment' beyond those that have been taken, I'm not sure that I believe the measures necessary to full reset costs would (or should) be taken.
In the absence of a solution, and/or a partial one to the housing side of the equation, I think raising employment income is one critical part.
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One last comment in regards to inflation.
The minimum wage rose by 20.7% last year.
CPI is tracking under 3% this year.
That represents a significant gain for a low-income earner, net of inflation.