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Ontario’s new changes are even more crassly political, being rammed through the legislature in short order just a year out from an election. After pronouncing that an earlier decision to index the minimum wage to inflation would take the politics out of this policy, the government has moved to put the politics back in by setting its own rate, without any economic study of the consequences.

Setting minimum wage is always a tricky balance for any government. Doing it right requires a careful review of wages, employment levels and the state of the economy. While the vast majority of employers hire at wage rates above or well above minimum wage, several important sectors of the economy, including retail and hospitality, do not have the margins to allow much higher wage levels. These sectors are employers of a large number of young people and other inexperienced workers, many of whom will be hurt when wages rise beyond the affordability of their employers. Even the Alberta Department of Labour’s briefing notes admitted that the $15 hour minimum wage could lead to significant job losses. To the best of our knowledge, the Ontario government didn’t even care to get a briefing on the potential consequences of its move.

How exactly does this provincial issue go national? Already we’ve seen Ontario copycat Alberta’s $15 minimum wage. With the result of the B.C. election remaining uncertain, one can’t help but think that pro-union forces in that province are licking their chops to join the parade. There is no telling who will be next, as governments across the country could look to play Santa Claus with other people’s money.