World Issues

Finding Better Income Balance: Small Minimum Wage Increases Won’t Cut It

By Sherwin Karimpoor, XSJ News

Money Cash Burning - Free photo on Pixabay
Photo by Gunjan2021, Pixabay

As the Canadian government revealed their plans to increase the provincial minimum wage, few Canadians felt relieved of financial stress while most felt as though the increase was not enough.

Following the release of Budget 2021, the Canadian government proposed that they would increase the provincial minimum wage to $15 per hour in the new year. Income inequality has posed a threat to the Canadian economy as the gaps in wealth, as well as the overall costs of living have risen with inflation. 

Nearly 1.6 million Canadians work minimum wage jobs. In 1998, it was recorded that 5.2% of all Canadians had minimum wage jobs. The percentage doubled in 2018 as 10.4% of Canadians were recorded, with one-in-three workers possessing postsecondary degrees according to data from Statistics Canada.

The rise in minimum wage begs the question: What more can the government do? In a recent article published by CBC News, many Canadians said that in order to meet their basic needs, $17 per hour should be the minimum. 

Recent data has shown that personal income taxes and government transfers such as social assistance, employment insurance, child benefits and old age security have improved the issue surrounding income inequality.

All hope is not lost. Check out these three Canadian organizations below that have helped spearhead the fight for income equality. 

  1. United Way of Canada

The Unite Way of Canada’s main focus is to move people out of poverty to new possibilities, help kids achieve their full potential  and build strong communities. They aim to provide stable housing through the usage of emergency shelters as they fight for affordable housing. They also strive to achieve food security for impoverished communities through the usage of food banks and school breakfast programs. Skill-building and financial literacy programs, as well as employment services are also provided for impoverished communities.

  1. Engineers Without Borders (EWB) Canada

Engineers Without Borders Canada strives to unlock human potential. They invest in companies surrounding water, sanitation and communications technology sectors in order to innovate for businesses and fight poverty.

  1. My Oral Village

My Oral Village is a nonprofit that aims to fight poverty through improving one’s financial literacy. They provide the tools and knowledge for illiterate and innumerate individuals, so these impoverished communities can understand their finances and make better decisions.

December 5, 2021

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