Another job-killing Federal Regulation on the Private Sector: Regulations are now in place for the Gender ‘Pay Equity Act’ in 2021 – September 18, 2020
A few laws once passed which are hard to eliminate even after an economic collapse occurs. The first is a minimum wage law. Once a private sector killing minimum wage law is passed, good luck reversing it. If you’re a wage earner, a minimum wage law is a godsend, that is, until you realize that your job opportunities as a low skilled wage earner just became limited, as manufacturers move their operations to a location without the minimum wage law. The second law that is almost impossible for a politician to reverse is rental controls.
If you’re a politician and you try to get rid of the rental controls, you will be demonized. From the outside looking in a rent-control law seems like common sense, but when it’s put into practice it’s actually one of the worse laws for the poor as it limits people’s options.
Rental controls similar to minimum wages are barriers to entry, if you’re wondering why developers are building condos instead of rental housing it’s because of rental controls. Adding fuel to the rental control fire in Canada is CMHC a STATE-OWNED enterprise that offers mortgage insurance.
With all that aside I’d have to put a Gender Pay Equity Act as one of the worst laws that could be written, especially now. I actually think the reason why they’re waiting until 2021 to pays this gender pay wage regulation has nothing to do with COVID-19.
I think they’re waiting because they know it’s a job-killer, but I assume Trudeau’s people believe that the Canadian economy will recover in 2021 and therefore adding this Pay Equity Act in 2021 won’t be that big a deal. In America, Black Americans are discriminated against by employers because of affirmative action.
A lot of employers aren’t sure if the black men they hire are smart as the diploma they have says they are. Affirmative action accomplished the exact opposite it set out to achieve. In the private sector, if you turn away customers because of your incompetence, the company you work for can go sued or can go bankrupt.
The numbers don’t lie, women COLLECTIVELY are less productive than men are. Women have babies, women maximize their sick days, when don’t work overtime, women get injured on the job more than men do, women usually won’t come to work when they’re sick, women have menstrual cycles, women work fewer hours than men do, women sue their employers more than men do.
The reason I outlined above are the main contributors to why women earn less money. Now, what’s really interesting about this Pay Equity Act in 2021 is how they will classify people who don’t identify as a traditional gender. Because that’s the problem with a lot of these regulations, there’s always a loophole.
The government was never intended to be this big and this intrusive in the economy, but it looks like that’s what the future holds for Canada.
Canada pre-COVID-19 was losing private-sector jobs at an alarming are, Canada has had a brain drain for years, the bank of Canada is now resorting to buying junk bonds, the proper term is secondary market corporate bonds, but it’s a junk bond, it pays a higher interest because it’s at greater risk of default.
More regulations to the economy equate to a greater risk of being an employer in the Canadian economy. Sure the Bank of Canada has shown that it has investors back, but the BoC having investors back wasn’t enough to keep manufacturing jobs in Canada.
I often say that the Central bank isn’t the main problem. The main problem are the politicians passing bad laws, that the Central Banks try and cover up with money printing. Lastly, do not assume that the Pay Equity Act won’t work, I actually believe it will work, I actually think women will get a pay increase, but this pay increase will be paid with devalued Canadian dollars and a shrinking private sector.
Interesting times ahead