Real Estate

Ontario government freezing min wage and cancelling GTA campuses. Effect on real estate?

  • Last Updated:
  • Oct 25th, 2018 2:44 pm
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes

Ontario government freezing min wage and cancelling GTA campuses. Effect on real estate?

This will have a negative impact on real estate right? I remember all the permabulls cheering when the min wage went up since that would make real estate go too the moon!

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Newbie
Aug 29, 2018
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Luckyinfil wrote: This will have a negative impact on real estate right? I remember all the permabulls cheering when the min wage went up since that would make real estate go too the moon!

Doggie dougie teach me how to dougie
Do share, is it cold and damp?
Sr. Member
May 3, 2013
760 posts
475 upvotes
Toronto
There are many opinions on the effects of increasing minimum wage. One of the theory is that increasing minimum wage increases the price of everything, thus rendering the purchasing power of minimum wagers the same. This is called inflation. To stretch that theory more, freezing minimum wage will remove the wage-induced inflation effect on real estate prices.
Deal Addict
Jun 7, 2017
1043 posts
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BC
Here's my soapbox rant: The gov's role is to provide an environment in which the economy can thrive. The min wage is intended as a safety net which is a social construct, not an economic one. An attempt to radically change the min wage by decree is an artificial input to the system. Strangely enough, artificial inputs always produce unintended consequences, mostly undesirable. This happens literally all the time in economics and labor.
Deal Expert
Feb 29, 2008
21738 posts
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Tarrana & The Ri…
All I can picture is Wynne in a dark room with empty bottles of corona, fist pumping.
Deal Guru
Feb 9, 2009
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Luckyinfil wrote: This will have a negative impact on real estate right? I remember all the permabulls cheering when the min wage went up since that would make real estate go too the moon!

Doggie dougie teach me how to dougie
LMFAOOOOOOOO
Deal Guru
Feb 9, 2009
12381 posts
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by the way -- its 33 month freeze then starts it's increase again.

11.40 to 14 in a year was a pretty decent raise for a while.
Deal Expert
Feb 29, 2008
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This is a good thing.
Member
Jul 2, 2018
317 posts
312 upvotes
The minimum wage freeze was expected.
The universities will effect a few streets at best.
Realtor + Investor
Banned
Mar 13, 2018
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Sanyo wrote: by the way -- its 33 month freeze then starts it's increase again.

11.40 to 14 in a year was a pretty decent raise for a while.
But it was a 8 year wait or so for the jump was it not?

Should go up every year with inflation instead of stagnation followed by catchup
Deal Fanatic
Dec 6, 2006
5805 posts
1972 upvotes
Toronto
Gboard2 wrote: But it was a 8 year wait or so for the jump was it not?

Should go up every year with inflation instead of stagnation followed by catchup
Well, that depends who and how desperate the politicians in power need to buy votes.
Deal Addict
Dec 30, 2012
1098 posts
1147 upvotes
Toronto
Freezing minimum wage is perfectly defensible. It went up too fast for many smaller businesses to adjust.

Getting rid of the extra campuses perhaps defensible as well. How many more gender studies grads do we need?

But axing the two paid sick days per year was just a prick move imo, and I'm no bleeding heart leftie.

I've never worked for a company that would begrudge me taking a paid day off due to illness (though I almost never did; I don't think I've taken a single sick day in the past 5 years), and now live in a country with generous short-term sick leave provisions. But not everyone is so fortunate.
Newbie
Sep 1, 2018
53 posts
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This is the result of voting the current government. You knew this will happen, just took at the Harris government.
Deal Guru
User avatar
Sep 8, 2007
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Way Out of GTA
Rayflygon wrote: This is the result of voting the current government. You knew this will happen, just took at the Harris government.
I know and it's an excellent first step. What we wanted and what we needed.

As far as RE
- no one making min wage is buying houses now, nor in most case ever
- helping small businesses stay afloat, may actually help those (as in a small business owner) stay afloat and perhaps buy a house
- 33 month pause is because Wynnes last minute vote grab was way way above inflation. If you've got a problem with all of this ask why she waited until so late to do it if it was so needed? Oh right cynical vote grab on other people's money and livelihood

Next up and desperately needed landlord tenant act reform. There's so much that needs to be done here, that I anticipate the legislation will take some time. Renters will moan, as opposed to how they cheered Wynnes unfair 2017 act that left vacancy near zero as landlords fled the market.

Go DoFo!.
Deal Expert
Feb 29, 2008
21738 posts
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civiclease wrote: Freezing minimum wage is perfectly defensible. It went up too fast for many smaller businesses to adjust.

Getting rid of the extra campuses perhaps defensible as well. How many more gender studies grads do we need?

But axing the two paid sick days per year was just a prick move imo, and I'm no bleeding heart leftie.

I've never worked for a company that would begrudge me taking a paid day off due to illness (though I almost never did; I don't think I've taken a single sick day in the past 5 years), and now live in a country with generous short-term sick leave provisions. But not everyone is so fortunate.
I agree it went up too fast. Ford is doing the right thing here. Now if he could look at the idiotic "fair housing" rules and relax or remove them.
Banned
Mar 13, 2018
1385 posts
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civiclease wrote: Freezing minimum wage is perfectly defensible. It went up too fast for many smaller businesses to adjust.

Getting rid of the extra campuses perhaps defensible as well. How many more gender studies grads do we need?

But axing the two paid sick days per year was just a prick move imo, and I'm no bleeding heart leftie.

I've never worked for a company that would begrudge me taking a paid day off due to illness (though I almost never did; I don't think I've taken a single sick day in the past 5 years), and now live in a country with generous short-term sick leave provisions. But not everyone is so fortunate.
How many gender study grads are there do you know?
And the campuses were more about the huge growth in the GTA esp in York and Halton and Simcoe over past decade and all the post secondary students needed to travel deep into the city for post secondary leading to an access/commute and overall traffic congestion or needing to take up housing in city if boarding

I mean so many people have moved to Barrie/Newmarket/Aurora or Milton and etc and all the students now (they will go university regardless of distance) now all commute/compete with the workers into the city when the satellite campus was to address that to reduce unnecessary flows into the city
Last edited by Gboard2 on Oct 24th, 2018 8:01 am, edited 1 time in total.
Banned
Mar 13, 2018
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JayLove06 wrote: I agree it went up too fast. Ford is doing the right thing here. Now if he could look at the idiotic "fair housing" rules and relax or remove them.
Ford won't touch that with a 100 ft pole

How did it go up too fast? Went up over 8 years
Deal Addict
Dec 30, 2012
1098 posts
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Toronto
Gboard2 wrote: How many gender study grads are there do you know?
And the campuses were more about the huge growth in the GTA esp in York and Halton and Simcoe over past decade and all the post secondary students needed to travel deep into the city for post secondary leading to an access/commute and overall traffic congestion or needing to take up housing in city if boarding

I mean so many people have moved to Barrie/Newmarket/Aurora or Milton and etc and all the students now (they will go university regardless of distance) now all commute/compete with the workers into the city when the satellite campus was to address that to reduce unnecessary flows into the city
Fair point and yes the "gender studies" refrain is getting a bit stale, but the fact is the university system is already saturated with loads of students who quite frankly don't belong there. From what I read of the PCs' plans re: post secondary, they will make trades and apprenticeships a priority which I think is the correct strategy. We need more plumbers and elevator repair people, not more psych grads.

I believe many colleges in Ontario now have partnerships with universities whereby students can study for two years at a college and then transfer to a university. These programs should be promoted to take pressure off the universities and allow more young students to live at/near home for a couple more years (for those students who have grown up in smaller cities that have a college but not a university).

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