Ontario’s Premier has not shied away from controversy in recent months as she continues a bitter campaign for re-election in the coming year.
The premier has pushed minimum wage faster than any of her predecessors, called business owners bullies, and attacked her opponent based more on their identity than their policies.
She has bet that policies like minimum wage and a campaign built on identity politics can make the people of Ontario forget almost two decades of poor Liberal management and corruption.
These maneuvers have had a positive effect on the Liberal party in Ontario where Kathleen Wynne’s abysmal 17% support rating has slowly risen alongside these tactics to roughly 24%, as some of Canada’s poorest Canadians return to the Liberal party.
Yet these tactics and policies in the long-term are precisely what will hurt Canada’s working poor the most. Higher wages, higher premiums, and more benefits will not enrich Canadians as it does not increase the productivity of anyone.
Without an increase in productivity, there is no increase in production, only an increase in costs. These increases will be put solely onto the owners of the business and will, therefore, be passed onto the customer in the long term, while in the short term staff and other expenses will be cut.
Perhaps even worse most businesses develop compensation plans that meet the needs of their employees and their business, the minimum wage hikes at its core destroy his balance. For example business like Tim Hortons maintain for-life employees which are normally older and represent the working poor and short-term employees which are normally students.
The company developed a large scale benefits system which came into place for the older for life employees and managed to keep a large staff by offsetting costs through the short term staff which would not use the benefits. Ontario’s new laws not only provided more benefits to the short-term staff, it also provided a large salary increase to the entire staff.
Forcing Tim Hortons to cut benefits to the working poor, the precise group Kathleen Wynne and the Liberal party proclaim to help.
A pattern of short-term decisions
The Liberal party is in effect making a slew of short-term decisions designed to get the party elected by crippling the province’s finances. This is perhaps why the Premier lowered the cost of Hydro through an agreement of far higher prices in the future. At a time when the province is older and even more unable to handle high hydro costs.
These short-term actions will cripple the Canadian economy and its time Canada woke up.