Chapter 8 Blog

Link: http://www.leaderpost.com/Business/Saskatchewan+sees+increase+wages+employees/1546542/story.html

Summary
Workers in Saskatchewan received an increase in wages in February. Doug Elliot, a commentator who publishes the Sask Trends Monitor newsletter, stated that there were signs of economic slowdown in the province and believes that the increase in wage will help people in this slowdown because she states that the amount people earn is what drives consumer spending. With the increase in wage, the amount of hours of work and over time are going down, Elliott, in response said that in this situation its only a matter of time till it makes an impact on consumer spending.

Connection
The topic connecting this article to the chapter is wage control. With the increase in wage, two things are likely to happen: an increase in price (inflation) or a price ceiling being placed. Businesses will feel the need to increase their prices to increase their profit margins due to the wage increase. Price ceiling is placed to prevent businesses from setting high prices in response to the increase in wage. Setting a price ceiling would result in an increase in demand but supplies will decrease.


Reflection
I believe that the wage increase will only help for a little while then after that it might become a burden for some people. By increasing the wage it will affect some industries like fast food. In response, Employers might increase the price of products or employ fewer workers to increase their profit level. So instead of helping workers, it might cause more problems for them which in turn will negatively affect the economy.

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