After years of discussion, the Ontario government has passed legislation to increase the (general) minimum wage from $11.60 per hour to $14 per hour effective January 1, 2018. While this may be good news for those who rely on the minimum wage, this increase of more than 30 percent will have a devastating impact on both businesses and workers. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Many typical minimum wage or entry level jobs are found in a restaurant or small retail stores where profit margins are very low. If the minimum wage increases significantly, from $11.60 to $14, many employees will lose their jobs or see their work hours reduced. One of the fundamental lessons of economics is that when the price of a good increases, consumers buy less of it. This law of demand also affects the market for low-skilled workers: raising the minimum wage means a higher employment cost for each worker, making workers less affordable than before. For a small business, for example, we will not keep a worker in a mandated position. $14 per hour if that worker's efforts generate only $7.25 per hour in additional income. Over the course of the year, a store that employs such a full-time employee would suffer a huge loss in margin. Instead, it would eliminate that job, and the evidence shows that employers do indeed respond this way to minimum wage increases. A recent study by economists Jeffrey Clemens and Michael Wither finds that 1.4 million jobs were destroyed in the late 2000s when the minimum wage increased by nearly 30% on average across all 50 states. United. Worse still, these job losses have likely been suffered by those who need them most. This fact leads us to the following reason: the minimum wage disproportionately harms marginalized groups. When the minimum wage increases, the workers laid off first are those considered unskilled and uneducated. Thus, those who are most disadvantaged tend to suffer the most job losses. This reality is compounded by the fact that raising the minimum wage leads to greater competition for jobs. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay The final reason is that minimum wage increases are "There is no need to give raises to deserving workers. This means that companies voluntarily raise wages. Currently, about 90 percent of Ontario workers earn a salary above the current minimum wage, proving that employers are not only paying the minimum they are required to pay by law However, when the government imposes such increases by raising the minimum wage, some of the workers. the less experienced will not only lose their current job, but they will not be able to find another one. Essentially, the minimum wage cuts off the first rung of the employment ladder, and it is this first rung, the lowest paid. that provides workers with the skills and experience they need to reach the next level and continue to climb their path to a better life..