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Wednesday, September 9, 2015

We should all be in favor of a $15 per hour minimum salary

October 19. Remember that date... Its election day in Canada.

I got all excited today when I saw that the TSX was going all way up. At least it was during the morning. After what, I was crossing my fingers for my non-registered portfolio hit on the 125k value - wouldn't that be cool? Finally, I was going to breathe again. Just like some other days, the stock market is not giving me the princess treatment. My non-registered portfolio finished the day at $122 785.93.

A TFSA with a contribution limit of $10 000 won't be enough for Stephen Harper to stay in power. I understand that if "Tom" Muclair get elected, investors will have to say good-bye to the extra 5k Harper gave us a few months ago. But if its to see the minimum wage salary going up to $15 per hour in Canada, I won't have any problem to go back down to an annual investment of 5k inside my TFSA.

An annual salary of $29 250 before tax should be consider the minimum livable in Canada. Only for that point alone, Muclair is winning my vote. As announced, I will vote for Hélène Laverdière, maybe not on October 12, but certainly on October 19.


Anonymous said...

Why would $15/hour pay be beneficial to Canadians? That's plain short-sighted. If raising minimum wage would solve all economic problem (mainly the poor)...the world would have done it a LONG time ago. It's plain left-wing thinking (meaning communist)

1. Inflation goes up along with minimum wage (so benefit to anyone inflation-adjusted)

2. Unless Canadian business sectors are competitive enough to absorb $15/hr cost..we would have a) lots more ppl get unemployed b) lack of incentive for company to be more competitive because they would just move to somewhere else that's cheaper. (It's capitalism afterall)

Wealth = Increasing the quality & efficiency of production (to achieve that $15/hr do nothing but discourage production in Canada...benefit other parts of world for sure)

Capitalism is a very long-sighted system. Socialism/Communism is rather appealing because it's rather short-sighted especially during economic downturn.

Can Know Anything said...

Hi Sunny,

Perhaps this comment is a bit off topic....but
don't you think that this time of a depressed stock market is a great time to find bargains?
Oil stocks galore selling near their 52 week low.....

Can Know Anything said...

By the way, that comment left by "Anonymous" is right on the money.
Very nicely said.

The same comments could also be said for the Ontario pension plan which our Premier has will discourage businesses to set up shop in Ontario, and it will limit the hiring and number of full time employees that small caps are willing to take on. No body seems to know how that Ontario pension plan proposal will affect part time workers...

Sunny said...

A business that cannot afford to pay an employee $15 an hour should review its priority. A $15 minimum wage salary is not a left wing or communist thing - its only common sense. Its quite shocking to see some individuals conservative and capitalist to the extreme being against the idea.

No one should invest in oil - its too volatile. Some analysts predict that oil will go as low as $20. I like to think it will. Oil is not a top value.

Its not because the federal or provincial government are taking measures to increase the well being of its population that business are going to move away. Not all businesses are interest in having activities in third world countries or in the dirty China or Thailand.

That's my view. Its always interesting to see that some readers have such a twisted mind.

Anonymous said...

$15 minimum is leaning towards left wing. The idea is simple. If we can raise to $15 why not $25 or even $50 decades ago? (It's not the arbitrary number that matter, it's the competition around the industry/globe that matter)

A business that cannot pay a certain wage has nothing to do with priority. A business is there because one SIMPLE equation:

1) Revenue - Cost = Profit

If we raise the cost 50% or 100% or even 500% order to stay in profit we either increase Profit Margin or Asset Turnover because of one SIMPLE equation

2) Return on Capital = Profit Margin * Asset Turnover

A) Profit Margin: In order to increase Profit Margin given the 50% or 100% bloated cost, we need to increase the price of goods/services and that's called inflation!

Yes, we did raise minimum wage 100% over the last 50 or 60 years ago (yes from $5 to approximately $10 today) and yes we do increase just that amount inflation as well!

B) Asset Turnover: That's the key to raise Return on Capital without much inflation or even ZERO inflation.

Yes..Asset Turnover is ALL about Capitalism..We need to increase the quality & efficient of production and that's Asset Turnover.

And whoever invest in stocks (that's business) should favor capitalism..and yes in order to make everybody a bit wealthier we should encourage the increase of quality & efficient of production without much inflation.

Conclusion: No ONE (not even the poor) should favor $15 or $25 or $500 minimum wage.


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