Question

Question 2 (24 marks) What is the current minimum wage in British wage has changed over the past 5 years and the main arguments for and against ? Include in your answer how the minimum a minimum wage. Please reference your sources.

Answer 1

Ans:-

The current minimum wage in British Columbia is currently equal to $12.65 per hour. The pan of the government is to increase the minimum wage rate to $15 by 2021. From 2001 to 2011, the minimum wage rate in British Columbia remained stagnant at $8 per hour.For the last five years, the minimum wage rate in the province have been following an upward trend.

The recent increase in the minimum wage rate in Columbia is justified. This is because the current poverty line is $15 an hour. The world all over has become expensive.There are many workers who are currently earning below the poverty line. The government needs to make effort to reduce the poverty rate in the country,. However, an increase in the wage also reduces the demand of labor and might lead to surplus of labor in the country or the phenomenon of unemployment in the country. Thus, once the government increases the wage rate to $15 per hour equal to the poverty line, it should stop increasing minimum wage for few years to prevent unemployment in the country. Thus, the current wage increase is justified in the light that it will help many workers in the future to move out of the poverty line.