The humidity has subsided from the past few days and it's a comfortable temperature to enjoy a drink on the patio or simply enjoy the sights and sounds of the city...it makes you feel good to be alive. Unlike the humid weather that unleashes homicidal thoughts...errrr I mean is unpleasant to me. And that is as much as you will ever read or hear about the weather from me...back to the bears.
Search YouTube or Spotify for that song, Waltzing with Bears, it's kind of cute in a silly way. I once proposed the idea of dressing up in a bear costume and dancing with my daughter for a music recital type of thing she was involved with when younger, I kind of wish we had done it, it would have been a great story and wonderful memory. But today I have a different take on Waltzing with Bears...bears being a stand in for hard choices.
Bernie Sanders has been touting a $15 an hour minimum wage for a while now. Ontario just announced it was moving towards that regulation over the next few years. Which means bit by bit other jurisdictions in this country will be moving to something similar. I'm kind of torn by this though. I don't know if this solves any problems in the long run when compared to unintended consequences that might and probably will happen.
Don't get me wrong, I'm all for helping to lift people out of poverty and evening out the incredible disparity that exists between the haves and have nots...hell, I'm probably a closet socialist, but being a former business owner and currently in management of a mid size business that this minimum wage hike would have significant effect on, I can't help but look at both sides of the issue. It is never as easy as simply giving a raise to someone. There is a domino effect that takes place and in the end, everyone ends up paying.
Of course, I am not an economist by any stretch and most likely I am talking out of my ass often but try this on for size. Joe is a dishwasher earning $11 an hour. He gets a $4 an hour raise to meet the new regulations imposed by the government. So now Joe is making the same amount of money as Mark who is a second cook. Logic would dictate that Mark should get a raise of $4 an hour since Mark, one would assume, has worked hard to be in the position he is in. Through training and experience he has worked his way up to a second cook position. Well, now Mark is making more than his supervisor...Jack the Sous Chef. You think Jack is happy about that? Nope...another $4 for Jack. And so on until you get to me...I'd like to be earning another $4 an hour please. By the time the dust settles every person in the joint has gotten a $4 an hour raise. You don't need to be an economist to ascertain that now, suddenly, this business is not going to be making any money....the average rate of profitably in the restaurant business is 4% by the way. So one of two things will happen...they close up or they hike their prices to compensate for this shift in wages to maintain some sort of, what do you call it now? Reason for being in business.
Do you know where this is going? Yeah, your Big Mac is now going to cost you $7.89 as opposed to $4.89 or whatever it is now. The burger at my place is now going to be $20. This will, of course affect a broad spectrum of goods and services. Grocery stores will need to charge more...which means that your grocery bill go up. Not to mention the fact that the producer of those sausage rolls and chicken bites is going to have to raise his pricing because his cost just went up 27%. Which, in the end, leaves you with less money to buy that fancy looking drone for high altitude selfies. I believe this is inflation...again, I'm not an economist. And I'm sure there are benefits that I don't realize or can comprehend, maybe this is a simple market correction at the behest of the government. How altruistic of them. In the end we will be looking at a cost of living increase that brings us closer to places like Norway and Sweden. I like the way those countries approach both life and social issues....but are we ready for it?
I can't help but think there might be an easier way of helping to lift people out of poverty...trying to end that vicious cycle of despair and hopelessness. The idea of a guaranteed or basic income from the federal government is not a new idea but it has been getting some traction lately and I think maybe that's something that should be looked at hard. There are oodles of programs out there that various governments have come up with to help those in need of help. It is a quagmire of programs that have levels of bureaucracy built into them that feed frustration and the machine. Those that would seek assistance are vilified by a sector of the population and barely tolerated by those that have been tasked with helping them, leaving those most in need of assistance to feel like beggars and worthless rubes. How about we eliminate the majority of those programs and forms and simply give everyone $12,000 or $15,000 a year. No strings. Got a job? Great, here's an extra chunk of change, enjoy. I believe the thinking is that by eliminating a plethora of subsidies and it's corresponding bureaucracy along with actually taxing corporations and getting a little more from the wealthy the basic income might be a neutral kind of plan. At the very least, the greatest beneficiary is the person that needs it the most.
Again, I'm not Jim Carney but this lefty wet dream makes sense to me. The other thing it does is take the burden off of business and the middle class. While I have a special rung in hell for corporations that use loopholes and tax laws to negate, as much as possible, their exposure and generate huge returns for their shareholders, it's not their fault if the government is too stupid to make them pay their fair share of taxes. It's the medium and small sized business that will get squeezed the most by increasing wages. The governments desire to be seen to be doing something about wage disparity and poverty is being dumped onto business. And don't try and vilify all business in one swipe....comparing the neighbourhood pub to Manulife Insurance is akin to comparing the Yugo to an Aston Martin Vanquish. Don't be absurd.
See...closet socialist. Surprised? Why you ask? From here to there and beyond this is what I have come to think about the world at large. A hybrid of capitalism, socialism and ingenuity coupled with a deep held belief that yes, we are our brothers keepers. My schooling, my family, my friends and my experiences have combined to leave you with this slightly moronic naive glob of a man that really thinks that the best of us is reflected in how we treat those that need a helping hand. There is plenty of money for the world to go round and cell phones and tablets will continue to be sold along with Twinkies and fucking figdet spinners, but I do believe we can do better in making choices that bring us closer together as opposed to pushing us apart....bridging that great divide.
Ciao
Papa Bear
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