Low minimum wage means race to the bottom

Apparently, Mr. Sawchuk doesn’t know about the Multiplier Effect


Low minimum wage means race to the bottom

Here is a simple question for Joe Sawchuk: what economic credentials does he have that enables him to talk with even minimum authority on anything to do with economics?

He certainly shows no deeper understanding about economic theory than he hates socialism.

At least I studied economics and commerce at a university level and don’t have a political agenda as such. But his “unbelievable” letters, are just that, full of unbelievable cow hockey pucks such as with his latest rant on raising the minimum wage.

People are too quick to believe the lie that life is good at the lowest possible prices. That is the thinking of CEOs and right-wing politicians and is known as the race to the bottom. That lowest price comes at too high a cost to society. It drains money out of the economy and impoverishes the middle-class and further impoverishes and takes away hope for the poorest in society to ever get ahead.

Apparently, Mr. Sawchuk doesn’t know about the Multiplier Effect in economics which holds that when people have money to spend, each dollar that they spend will be income for someone else. And that that income will in turn be part of the income of someone else and so on. Everyone who buys into the lowest possible price theory is just as guilty as the CEOs in turning us into a part-time economy, low wages, and few if any benefits.

Mr. Sawchuk has no problem with the extreme wealth inequalities in society that have developed under predatory capitalism. For the record, I believe in modified capitalism, which includes the greater good of raising the minimum wage so people can rise above poverty levels which providing the goods and services we want.

It isn’t just a socialist thing to be disgusted when people like the owner of Amazon can add $70 billion to their personal worth during the pandemic while millions go hungry. It is the understanding that such inequity causes far too much strain on societies which have collapsed for far less drastic income inequalities. It is the role of government to mitigate that inequity with progressive taxation to relieve poverty and the social strains such poverty causes.

[On another note]

Trump is a fascist, racist president. Those Proud Boys running around with their Confederate Flags inside the Capitol Building are his chosen people. Those on Fox News, people peddling conspiracy theories even in this paper, are the useful idiots and the enablers which have allowed Trump to live in his alternative universe.

If there is a lesson in what happened yesterday for us in Canada, it is that we can see what happens when you don’t confront the right-wing politicians, evangelical groups intent on returning us to the Middle Ages, and above all, confront and rebuke every conspiracy theorist or peddler of disinformation that shows up to play Whack-A-Mole.

I might not support pure socialism, but I am not so far into my dotage that I would ever support the social conservative agenda of which Mr. Sawchuk and Mr. Foster write ad nauseum about. The Republican mindset that created Trump has no place in Canada, but unfortunately, it is already here and writing letters to the editor.

Robert T. Rock

Mission City


Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A suspect has been arrested in connection with fires at Drinkwater Elementary (pictured) and École Mount Prevost. (Kevin Rothbauer/Citizen)
Arson suspect arrested after fires at Cowichan Valley schools

Drinkwater Elementary and Mount Prevost schools hit within a week

Danielle Groenendijk raised more than twice her goal for Parkinson’s Canada. (Photo submitted)
VIU volleyball athlete doubles fundraising goal for Parkinson’s

Daily runs over 30 days by Groenendijk add up to 254 kilometres

Seven streets in downtown Duncan, including Station Street, will soon have new native names added to their signage. (Submitted graphic)
New street signs in Duncan in English and Hul’q’umi’num

Seven streets to get additional native names on signs

Possible COVID-19 exposures may have occurred at Alexander Elementary School on Jan. 13, 14 and 15. (Google Maps)
Alexander Elementary in Duncan announces possible COVID-19 exposures

Exposures may have occurred on Jan. 13, 14 and 15

North Cowichan to add three more off-leash dog areas in the new year. (File photo)
North Cowichan adds three new off-leash areas

Trial program runs through 2021, but not the summer months

Maj.-Gen. Dany Fortin, vice-president of logistics and operations at the Public Health Agency of Canada, speaks at a news conference on the COVID-19 pandemic in Ottawa, on Friday, Jan. 15, 2021. THE CANADIAN PRESS/Justin Tang
B.C. records 500 new COVID-19 cases Wednesday, 14 deaths

Outbreak at Surrey Pretrial jail, two more in health care

Vancouver Canucks’ Travis Hamonic grabs Montreal Canadiens’ Josh Anderson by the face during first period NHL action in Vancouver, Wednesday, Jan. 20, 2021. THE CANADIAN PRESS/Jonathan Hayward
Horvat scores winner as Canucks dump Habs 6-5 in shootout thriller

Vancouver and Montreal clash again Thursday night

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Nanaimo RCMP are seeking the public’s help after a man allegedly assaulted a clerk at James General Store on Victoria Road on Jan. 18. (Submitted photo)
Suspect screams at customer then assaults store clerk in Nanaimo

RCMP asking for information about Jan. 18 incident at James General Store

Chartwell Malaspina Care Residence in Nanaimo. (News Bulletin file photo)
Two Nanaimo care-home residents have died during COVID-19 outbreak

Death reported Monday was the second related to Chartwell Malaspina outbreak, says Island Health

Rod Bitten of Union Bay won $500,000 in the Lotto Max draw on Jan. 15. Photo supplied
Vancouver Island electrician gets shocking surprise with $500K Extra win

Rod Bitten has been hard at work with home renovations, which is… Continue reading

Eighteen-year-old Aidan Webber died in a marine accident in 2019. He was a Canadian Junior BMX champion from Nanaimo. (Submitted)
Inadequate safety training a factor in teen BMX star’s workplace death in 2019

Aidan Webber was crushed by a barge at a fish farm near Port Hardy

Oyster River Fire Rescue members were called out to a suspicious fire in Black Creek. Two vehicles parked at a private residence were destroyed by fire. Photo courtesy Oyster River Fire Rescue
Suspicious fire destroys two vehicles at Vancouver Island residence

Oyster River Fire Rescue personnel were dispatched to a fire at a… Continue reading

Most Read