Ontario is considering tying minimum wage increases to the consumer price index.
This is an ok idea, but the CPI is systematically fiddled to decrease stated inflation, because a lot of costs are linked to it.
A better way is to link it to productivity increases.
But the best way is to link it to increases in the top 1%’s or the top .1%’s income.
(There are better ways in a different, fairer economy. The one I favor is to start it where the person who is at the bottom 10% is. From then on increase it by the average of non-fiddled inflation, average income, and the top 10%’s income.)
The Tragically Flip
My pet idea is to link upper marginal taxation to unemployment. Every % of unemployment adds 1-2% to the top marginal rate(s). Spread the pain.
Ian Welsh
Ha, that’s a good one. Although unemployment is pretty fiddled these days.
Unemployment + wants a job and stopped looking + working part time cause can’t find full time
S Brennan
My $.02 is, sector wide agreements based on a % of AVERAGE income….NOT wage.
Nick B
Linking the minimum wage to the top 1% or top .1% of income would be a political statement, but I think it would have the mid income earners working in the private sector at a disadvantage over time. Similarly, recent calls to increase minimum wage to 15-18 dollars an hour ( depending to whom you listen to) are completely unrealistic, as such an increase will bring low/no skilled worker pay to the skilled/ experienced worker level, discouraging many people from seeking any carrier development . I would rather link the current minimum wage and the subsequent increases to it to the medium income.