A lot of “experts” have been on T.V. lately, lamenting how the hike in minimum wage by over 20% this year will benefit the Ontario economy. One of the points made was that the very people earning a min-wage will still not be making enough to even save money.
That is true.
The argument is, that the extra money they will earn, they will just spend.
That is probably also true.
This doesn’t mean that this cycling of money is good, nor is it smart for that individual, making min-wage, to do so. And round and round we go, getting nowhere in GDP growth and production. It’s all window dressing. It's akin to landing on the Free Parking space in the game, Monopoly. The Free Parking space serves zero purpose, and if anything, gives you a temporary breather or band-aid; until you have to roll the dice again through the gauntlet of your friends line of properties that has a hundred houses and hotels on them.
Now, the smart thing to do, if you are making the new min-wage, or if it is a portion of your revenue stream among others, is to take the extra 20% you will be earning and put that into investments, more specifically, investments outside of Ontario, Canada. Or, invest in companies that are Canada based, but get 70% or more of their sales and revenues from places such as the United States.
That is what I am doing. I am not putting the extra money back into a failing economy and province that chooses to meddle with fundamental economics. Thanks for the extra money, though, Ontario. However, the prudent and smart thing to do is to make that money work for you elsewhere, where you will grow it much faster and with less risk.
It would be stupid to take that extra money and put it back into businesses in Ontario because the businesses in question will raise their prices (they already have), so really, you will be spending the same value amount of money that you would have before, due to price inflation to compensate for the squeezed margins that the government is putting on private business.
This is what will happen: Businesses will eventually leave Ontario (small businesses will fail) or stop growing and investing in it all together because it will be cheaper to pack up shop and move elsewhere, where margins are better. People like me will move our money elsewhere as well.
Economics is reality— and when you fuck with economics, it will fuck you right back.
So, whatever, I will take the Free Parking, thanks. However, I will be investing in assets off of Ontario's board game.
Hope you like getting fucked without lube, Ontario. Have a screaming orgasm for me! *Salutes