Raising the risk of extremism

R. MICHAEL WARREN

Before I argue that Ontario Premier Kathleen Wynne’s higher minimum wage and other workplace improvements will benefit our economy and democracy, let me make a couple of things clear.

First, I’ve had experience meeting payrolls in my own businesses. It’s challenging. Second, I’m not a left-leaning economist using this platform for political advocacy. Instead, I am trying to take an evidence-based look at the longer-term political and economic benefits of improving the employment conditions of low-wage workers in Ontario.

It’s hard to avoid the raging debate in the media. A variety of business groups have turned up the volume on their objections. And they have an important point.

Implementing a $15 minimum wage by 2019 (up from$11.40) is too fast and the pre-election timing reeks of political expediency. In 2014, Wynne promised to eliminate minimum wage politics. She set the amount at $11.24 and told business it would be increased annually based on the rate of inflation.

However, this May she broke that promise and introduced an expanded employment standards package including a proposed minimum wage increase to $14 by this January and $15 by 2019.

That’s a 32 per cent increase over 18 months. Too much, too fast. If Wynne feels she set the minimum wage too low in 2014, she should give business a longer phase-in period to adjust to her latest move.

Beyond the need for a longer phase-in period, the arguments for Wynne’s aggressive upgrade of basic working conditions are on her side. First, why a $15 minimum wage will help our democracy.

Wedon’tthinkofCanadaasoperatingalow-wage economy for decades. But it has, and Ontario has a higher reliance on low wages than B.C., Alberta or Quebec. Nearly 30 per cent of Ontario’s workforce is earning less than $15 an hour. That’s almost 2,000,000 workers struggling to make ends met, while the one per cent control more and more of our income and wealth.

The implications of leaving such a large segment of the workforce, and their families, on the fringe of the economy can be dangerous for any democracy. The condition can be sustained for a while, but when it collapses and chaos ensues, often suddenly, everyone seems surprised.

South of the border, Donald Trump’s core supporters are largely white men and women for whom the American Dream has long passed them by. They feel they’ve found a voice in Trump and so far this destructive, child-president can do no wrong. But in the end, it’s doubtful he’ll deliver them a better life.

Fortunately, France missed the bullet in their recent presidential election. But the extreme right remains strong in many European states. They are waiting for income and wealth disparity to get so unbearable that people take to the streets and push political extremism into power.

And it could happen here. If our federal and provincial governments don’t move forcefully to reform the tax system and improve working conditions we will inevitably face the same reaction from our disenfranchised. We have nearly two million workers in Ontario, and their families, trying to live on less than $15 an hour. Many have to stitch together part-time jobs with no benefits and no future.

The bottom line? Bring greater fairness to our tax system and to the working conditions of the marginalized — or risk political extremism.