Does an increase in minimum wage cause uncontrollable inflation or force employers to shift minimum wage jobs overseas? Minimum wage is not the cause of either. Mark Stallard breaks it down.
-- Sources and Additional Reading
The Staff Analytical Note (NOT official bank of Canada release) that states inflation at WORST would increase inflation (CPI) by 0.1% in Ontario in 2018. This is the source of the panic/right-wing head blowing up re. the Jan 2018 increase of minimum wage in Ontario to $14: https://www.bankofcanada.ca/wp-content/uploads/2017/12/san2017-26.pdf
Inflation increases over time.
2.1% since 1860: http://www.in2013dollars.com/1860-dollars-in-2015?amount=1
2% inflation average in Canada since 2008: http://www.inflation.eu/inflation-rates/canada/historic-inflation/cpi-inflation-canada.aspx
From 1700 to 2018 inflation was 1.08% per year on average. http://www.in2013dollars.com/1700-dollars-in-2017?amount=1
http://emedien.arbeiterkammer.at/viewer/pdf/AC00564651_1982_002/wug_1982_8_2_0289.pdf
