Real Estate

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

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  • Oct 25th, 2018 2:44 pm
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Penalty Box
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Aug 11, 2005
4059 posts
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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:
Oct 23rd, 2018 6:34 pm
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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Do share, is it cold and damp?
Sr. Member
May 3, 2013
599 posts
160 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.
Sr. Member
Jun 7, 2017
738 posts
526 upvotes
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 Fanatic
Feb 29, 2008
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All I can picture is Wynne in a dark room with empty bottles of corona, fist pumping.
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Feb 9, 2009
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Luckyinfil wrote:
Oct 23rd, 2018 6:34 pm
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 Fanatic
Feb 9, 2009
7782 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.
Jr. Member
Jul 2, 2018
127 posts
66 upvotes
GTA
The minimum wage freeze was expected.
The universities will effect a few streets at best.
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Mar 13, 2018
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Sanyo wrote:
Oct 23rd, 2018 9:47 pm
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 Addict
Dec 6, 2006
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Toronto
Gboard2 wrote:
Oct 23rd, 2018 11:33 pm
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.
Sr. Member
Dec 30, 2012
878 posts
935 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.
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Sep 8, 2007
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Rayflygon wrote:
Oct 24th, 2018 6:27 am
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!.

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