After years of discussion, the Ontario government has passed legislation to raise the minimum wage (general) from $11.60 per hour to $14 per hour effective January 1, 2018. While this may be good news for those who rely on the minimum wage, this additional 30% increase will have a devastating impact on both businesses and workers. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Many typical minimum wage or entry level jobs are in a restaurant or small retail stores where profit margins are very low. If the minimum wage increased dramatically from $11.60 to $14, many employees would lose their jobs or have their shift hours reduced. One of the fundamental lessons of economics is that when the price of a good rises, consumers buy less of it. This law of demand also affects the market for low-skilled workers, raising the minimum wage means a higher cost of hiring each worker which makes workers less accessible than before. For a small business, for example, it will not keep a worker on a $14 per hour mandate if the worker's efforts result in only $7.25 per hour in additional revenue. Over the course of the year, a store that retains such a worker full-time would take a huge loss from its margin. So instead it would eliminate that job, and evidence shows that employers actually respond this way to minimum wage increases. Recent research by economists Jeffrey Clemens and Michael Wither finds that 1.4 million jobs were destroyed in the late 2000s, when the minimum wage increased in all 50 U.S. states by an average of nearly 30%. %. Worse, those job losses have likely been suffered by the people who need them most. This fact brings us to the next reason: the minimum wage disproportionately harms marginalized groups. When the minimum wage increases, the workers laid off first are those considered unskilled and uneducated. Therefore, those who are more disadvantaged tend to suffer greater job losses. This reality is compounded by the fact that raising the minimum wage causes greater competition for jobs. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay The final reason is that minimum wage increases are not possible t necessary to give raises to deserving workers. This means that companies voluntarily increase wages. Currently, approximately 90% of Ontario workers earn wages higher than the current minimum wage, which shows that employers aren't just paying the minimum they are obligated to pay by law. However, when the government imposes such increases by raising the minimum wage, some of the least experienced workers will not only lose their current jobs, but will be unable to find others. In essence, the minimum wage cuts off the first rung of the employment ladder, and it is that first rung, the lowest paid rung, that provides the skills and experience needed for workers to reach the next rung and continue climbing towards a better life..