Minimum Wages Vs. Entrepreneurship – How to Demand Higher Wages In Canada
I’m going to start this article off talking about Tariffs and Income taxes, but even before that, I want to say that the reason I’m writing this article is that I don’t want to appear like a person who isn’t solution oriented. Sometimes I think my articles come across as rants, when in fact what I’m trying to do is get to the heart or the root cause of the problem.
One of the reasons I can’t call myself a true Libertarian is because I’m not against tariffs, As many of you know I buy and sell, I buy things from Canada, America, and China and resell them, but if it was up to me I’d only buy things from Canada. When I buy certain items from the United States or China I get hit with a tariff, now in Canada, we have fancy names for different types of tariffs, in some instances we just say you have to pay a tax? Whatever the case is, it’s a tariff in my book and I’m not against paying it, what irritates me, however, are income taxes and minimum wages Canadians get hit with domestically.
Why I’m against minimum wages
A lot of Canadians have taught not only via our public educational systems but in many respects at home that their goal in life should be to find a high paying job. I disagree, your goal in life should be to find a job and/ or eventually start your own business. Canadians are missing out on what should the most prosperous times in Canadian history. With the internet, with technology where it is today, Canadians have an amazing opportunity to be entrepreneurs with little to no risk. However, the environment created by our corporatists and socialist politicians is one that frowns on the small business owner and rewards the big corporations, many of whom are foreign-owned.
This relationship is primarily caused by Unions and employees all across Canada pushing for a higher minimum wage. The average price in 1971 for a house was just $30,426 — or a mere $190,388 in 2014 dollars. Now that same exact depreciating house as of 2014 in the GTA was $566,696. What happen? What happened was government interference, the creation of CMHC who assisted in the bailout of Canadian Banks in 2008. What happened was minimum wages hikes fought for by the Unions, what happened was welfare for the big corporations who hire a lot of Canadians and welfare for Canadian parents who have children they can’t afford to take off.
But the real culprit in all of this is minimum wages, minimum wages artificially raise the cost to hire people, which ultimately forces a lot of small businesses to take out loans to get started. If a small or medium sized business is going to take out a loan to start his/her business the business has to be worth their wild, which means that particular manufacturing industries simply won’t exist in Canada and if they do, the owners of such businesses will intentionally not grow their companies in fear they may reach a higher tiered income tax threshold.
The effect minimum wages have on job creators is devastating. Currently, one of the hottest entrepreneurial markets in Canada revolves around Real Estate, In Canada, we have a lot of horrible, untrained, untested real estate investors. The reason a lot of Canadians are getting into real estate is that of the fast returns for simply moving paper around to purchase a property. Because minimum wages are so high it’s only natural that most Canadians would opt to get into a business where they don’t have to get their hands dirty.
The effect raising real estate prices has had on Canada’s biggest cities is devastating, because what’s happening in Vancouver is that there really is a lack of demand because the real estate investors who are purchasing condos as an example are buying Bachelors and 1 and 2 bedrooms. What this means in Toronto and Vancouver is that Families have to pay more money to purchase a detached or semi-detached home. I remind people that I’m writing this blog post on October 10, 2018. Because when the Canadian real estate market collapses, this is probably going to be the instance where the truth is revealed.
The reason the real estate prices in Ontario are so high is because most of the condos being built are being built for real estate investors. Real estate investor only wants to purchase condos they can afford, which is why if you look at most Condos in Toronto and Vancouver the ones being sold are Bachelors, 1 and 2 bedroom condos. There’s no real residential demand for Bachelor, 1 and 2 bedroom Condos in Toronto or Vancouver. There is however real estate investor demand and because a lot of people want to park their money in real estate in hopes of present or future appreciation and/or as a place of residence for the foreign family who hopes to study for school in Canada, there really is a lack of supply for Ontario and British Colombia parents.
If you doubt what I’m saying is true, go to a Condo in Toronto or Vancouver for yourself and notice how little children there are in these extremely high rise condos. If you’ve lived in a rental housed apartment you know that after school kids are screaming or playing outside, they’re walking around, they’re getting into all types of mischief. This isn’t the case in Toronto and Vancouver’s condo real estate nightmare. So because the real estate needs aren’t meeting the demands of the people the coming collapse is imminent.
Now, why I bring up real estate in the topic of minimum wages is the topic of commercial real estate, commercial real estate in Canada is also over-valued, of course, less regulated, but overvalued non-the-less primarily because there aren’t enough entrepreneurs fighting to get those prices down. entrepreneurs are a different type of animal, a different type of thinker a different type of negotiator. Part of the reason why Unions often say that if a business owner can’t afford to pay Canadian workers the minimum wage they shouldn’t be in businesses is that the union culture in Canada is pro-big business and anti-small and medium-sized business.
The Union culture in Canada is pro-corporatist It’s corporatist because most of the Union owners have never owned or ran a successful manufacturing business in their lives. Most Union owners are bean counters, they look at the numbers and determine the value of a company based on present earnings, unions often never factor in the risks a business owner takes, the taxes they pay the cost to run a business. One of the reasons I think every person should start a business in their lives is because of the unexpected costs that occur when you run a business.
Businesses do go bankrupt and business problems can’t all be solved by simply raising prices if consumers have the option to purchase something for lower prices then a business that has high fixed prices will cease to exist. Minimum wages is an artificially fixed price created by the government. Quite frankly, if minimum wages didn’t exist they’d be more small businesses and the truth of the matter is if a person doesn’t want to work for less than $20 per hour for someone else then I agree that they shouldn’t, but once the government forces an employer to pay a minimum wage the people accepting those government enforced higher wages have just artificially raised the cost of living.
Why I’m Not Against a Tariff Tax and Why Income taxes Should Be Abolished
I’m against Trilaterial trade agreements, with all the government waste and manpower on social issues if that same money was spent on trade we wouldn’t have many of the foolish problems we have today. I like Bilateral trade agreements because a bilateral trade agreement allows Canada to go tit-for-tat on trade disputes with other countries if we deem it necessary. Bilateral trade deals can put an end to dumping as you can find the culprits who at a time are nothing more than individuals and punish them as individuals or entities, bilateral trade deals also allow Canadian companies to have the chance to compete.
part of the reason why I wrote extensively about minimum wages is that this is how you deal with currency manipulators. If your country abolishes minimum wages, countries who are intentionally devaluing their currencies to take your domestic consumers away should be hit with tariffs. Now, if the items being shipped into your country aren’t being made in Canada which under my rule would be the freest market on earth then those items would come across our border tariff free and only in the event that they’re dumping, meaning their products are junk and not being purchased by Canadians would we consider adding a tariff.
Now, if the Canadian economy is the freest on earth, meaning income taxes are abolished, minimum wages are abolished do I agree with Tariff taxes. Because if for argument’s sake Canadians simply admit that Germans and the Japanese make better Cars than Canadians there’s no need to tariff their cars unless they’re putting tariffs on Canadian cars going into Japan. If the Japanese tariffs are justifiable because the Japanese aren’t purchasing Canadian cars, similar to other countries dumping on us, it’s a matter the Canadian government would have to look into further.
Tariffs if people remember are a voluntary tax, consumers pay for tariffs, if the business owner no longer purchases the foreign made good it’s an indication that the consumers aren’t purchasing the foreign made item at a fast enough rate to justify the cost to import it. This is how Canada will be able to better manage its real economy. Canada still has a lot of entrepreneurs, but they’re being suppressed by excessive regulations. How Canadian workers demand higher wages is by having more entrepreneurs, more entrepreneurs equate to more hiring opportunities, good work is hard to find and every employer knows this so just like the athlete who demands millions of dollars a hard working employee can demand the same thing.
What actually makes employees less able to negotiate their wages is that unions and the governments play the role of mediators, so what winds up happening is the people that should demand more wages get stuck with everybody else, including the lay and the incompetent, because minimum wages force employers to pay more employers have less money to invest and the reality is, why should they invest? if the union is going to force them to pay more money to everybody. This is what leads to jobless, this is why as of 2018, Justin Trudeau’s Liberals have been growing the big government dependent public sector.
Canadians aren’t paying attention but as the public sector grows and the private sector shrinks, the public sector employees by a percentage will actually balloon at a much higher percentage. There are a lot a lof businesses in Canada that reliant on Government protections and Government welfare to keep their doors open, I include these big corporations as the Public Sector also, I include all supply-management businesses as public sector jobs, they’re not counted as public sector jobs, but I include them as public sector jobs, Canada Post is a Crown Corporation that I include as a public sector job, people don’t understand that these private companies that are reliant on government protections are actually contributing to the coming economic collapse in Canada.
Solutions to the economic Collapse in Canada October 10, 2018
I’m writing this blog post primarily so that when this economy crashes Canadians will understand the root causes. If you want to a better Canada we need more entrepreneurs with small and medium-sized businesses, we need to abolish minimum wages, we need to end corporate welfare and we need to consider only doing Bilateral trade deals. End the Canada Post monopoly, Canada Post is profitable primarily because it’s a Crown Corporation that doesn’t have to compete. If Canada Post had to competitive prices for courier services would be lower. As long as Canada Post is a crown corporation it shouldn’t be allowed to give preferred shipping pricing to foreign countries like China.
If Canada Post wants to operate as a private company it should be stripped from it’s Crown Corporation status. Canada Post is extremely important to Canadian small and medium-sized businesses, the fact that companies like ePacket can ship through Canada post with tracking numbers for a lot less than what is being paid by Canadian consumers is immoral and corporatist. If Canada Post wants to sign deals with other companies and nations it should be stripped of it’s Crown Corporation status as it’s serving the needs of foreign entities while gauging the Canadian consumer
Keeping on the topic of delivery and trade, the only tax that should be considered in Canada is a Tariff tax, End the income tax, income taxes are a tax on being productive. Because of income taxes, both business owners and employees intentionally don’t work as hard because producing more and working harder means you will be paying more taxes. Income taxes are a demonic law that needs to end because it’s in no way a voluntary tax. A tariff tax is a voluntary tax. There’s no gun to my head telling me that I have to buy a Mercedes Benz.
Minimum Wage is a gun to your head tax, that tells business owners that if they don’t pay the amount of money to workers that the Government tells them to pay they’ll be jailed. Corporate and individual welfare is a gun to your head tax that tells the productive and efficient people of society that if they don’t pay the government taxes to pay the unproductive or inefficient amongst them then they will be put in Jail. This is why the Canadian economy collapsed. If these issues are never addressed in Canadian society, because of Keynesian economics the Canadian economy may drag on until it comes to complete halt, similar to Argentina.
People think the economic problems in Argentina stem from their currency, I’ve heard Libertarians claim that if Argentina had a Gold currency or a gold backed currency that Argentina’s inflation problems would be solved, these people are wrong. The problem with Argentina is their public sector is over 30% of their economy. There’s no incentive for public sector workers to be efficient. Furthermore what’s not counted in Argentina are their Private Sector companies that are dependent on Government Protectionisms to stay afloat.
A gold backed currency won’t solve Argentina’s big government economic problems, those public servants will still gobble up that 30% worth of gold and protest if the government dares to scale back. The inevitable corruption, of course, happened in Argentina when top-level government Politicians got caught making billions of dollars off of Government contracts. This is inevitable when big government grows, all people are corruptible, although not perfect what’s not corruptable is free market economics, because in a free market system bad or old business plans are allowed to die.
If you’re reading this after the economic collapse I advise you to vote for the political party that is closely aligned with what was written in this blog post.
If you want to demand higher wages in Canada end corporate welfare, abolish minimum wages and make it known that economic freedom is based on entrepreneurship, not a 9-5 job. If you don’t want to work for less than a certain wage don’t, but don’t force the destruction of all small and medium-sized businesses just because you as an individual want more money, this is greed. Canadian businesses need to be able to compete on a grander scale so the money you do earn isn’t wasted on paying for the government to subsidized corporations and people who want to receive welfare their entire lives. Please Canada Wake Up before it’s too late
Interesting times ahead.
