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Old 11-01-2013, 08:57 AM
 
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Why is minimum wage low in Canada while Australians enjoy high minimum wage.?




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Old 11-01-2013, 09:02 AM
 
Location: Vic, Australia
85 posts, read 112,663 times
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It's right next to America. You can't pay too high because that then makes everything more expensive. People will just go to America and buy everything there for less. So a delicate balance must be achieved.*

I actually have no idea, but that sounds plausible to me.
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Old 11-01-2013, 09:06 AM
 
Location: Gatineau, QC, Canada
3,402 posts, read 4,228,799 times
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Because cost of living is different.
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Old 11-01-2013, 09:32 AM
 
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Quote:
Originally Posted by FrankDrebin View Post
It's right next to America. You can't pay too high because that then makes everything more expensive. People will just go to America and buy everything there for less. So a delicate balance must be achieved.*

I actually have no idea, but that sounds plausible to me.
Minimum wage is more about ideology than doing anyone any good.

Your theory obvious doesn't fly. Germany has no minimum wage while France's is $14/H, one of the highest in Europe. The French didn't scramble to Germany to buy things.

I don't know why people think high minimum wage is a good thing (implied by the word "enjoy"). Employers respond to higher minimum wage by hiring less, as they are not stupid and will maintain a certain profit margin. Whoever think high minimum wages are protecting the poor working class has been misled.

Also: Australia has a higher average wage than Canada, which partly explains the difference too.

Canada

Notice the chart is in PPP, as Australia is more expensive, it means Australia has an even higher nominal $ income.
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Old 11-01-2013, 10:09 AM
 
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Because you have the USA right south (only less than 2 hours drive to most Canadians) where everything is much cheaper so people would just travel south to buy everything. Higher wages = Higher prices of goods.

Cost of living in Canada is overall cheaper than Australia anyway. Montreal has very cheap rent (does not exist in Australia) as for a large major city.
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Old 11-01-2013, 10:12 AM
 
2,214 posts, read 3,750,644 times
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Quote:
Originally Posted by yunemus View Post
Why is minimum wage low in Canada while Australians enjoy high minimum wage.?
There's quite a bit of variation in minimum wage around the world and according to the following graph, Canada isn't so special but Australia is:

(source: wiki image sourced from OECD)
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Old 11-01-2013, 11:26 AM
 
Location: Canada
4,672 posts, read 8,096,043 times
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Cost of living is lower in Canada so it's more acceptable. Although it's too low for the cost of living in BC which is closer to Australia's.
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Old 11-01-2013, 11:32 AM
 
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two continents?
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Old 11-01-2013, 11:39 AM
 
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Originally Posted by Mejsito View Post
Because you have the USA right south (only less than 2 hours drive to most Canadians) where everything is much cheaper so people would just travel south to buy everything. Higher wages = Higher prices of goods.
Two things I can't agree with

1) do people drive to the US that often to buy "everything"? I know for a fact that Toronto is not within 2 hours drive to anywhere in the US, when you account for the gas cost, time spent at the customs, it is usually not worthwhile. Plus, you get a limit of $200 for trip under 24 hours (anything more than that it requires a night in the US). Not to mention you can't buy service in the US.

This whole we can just buy everything in the US thing is not realistic. How much of your purchase this year actually happened in the US? maybe less than 3%.

2) high wages =!= high prices. Wages in Canada are lower than in the US, but prices are higher. You just refuted yourself.
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Old 11-01-2013, 12:59 PM
pdw
 
Location: Ontario, Canada
1,462 posts, read 1,863,770 times
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Quote:
Originally Posted by Mejsito View Post
Montreal has very cheap rent (does not exist in Australia) as for a large major city.
Complete and utter nonsense. Montreal has very expensive rent. Being an unneccessarily large, amalgamated municipality unfairly allows rents in far outlying areas to bring down the total average cost of monthly rent for the city. Australia's major cities are divided into small LGAs, with very few exceptions. You clearly have never even visited Montreal, so I have no idea why you're making ridiculous claims like these.
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