A study has found that implementing an increase in minimum wage correlates to a decrease in suicide rates. This finding prompts the immediate desire to increase the minimum wage as much as possible, in hopes that suicide rates will continue to decrease. A seemingly easy fix to the high suicide rates, is not an easy fix at all, as the resources (money available) to pay wages is not limitless, and is thus at its agreed-upon wage due to the available resources in the provincial government. The issue at hand relates to the “Minimum Wage Legislation” , and the study brings into question, “Living Wages” and “Wage Restraint Regulations”. Please visit the study to read more: https://globalnews.ca/news/6377954/minimum-wage-suicide-rate/
The conducted study all but demands an increase in the minimum wage, practically stating that the higher the minimum wage, the lower suicide rates will be. Although the relationship studied between minimum wage and suicide rates is interesting and jarring, it must be considered that correlation does not mean causation. From the employees’ point of view, of course, they would like to see an increase in the minimum wage, they would have more money in their pocket, and thus more financial security. As we learned in Module 2, the Managerialist Perspective of the Employment Relationship, states the managers’ willingness to spend more on employee wages as this will result in highly motivated and happy workers. If approaching the issue presented in the study from the Managerialist Perspective with the labour market in mind, then it seems obvious to increase the minimum wage to increase employee morale and financial security, whilst securing the manager in a place of power in the employer-employee relationship. Consequently, increasing the minimum wage does not have the same positive effect on the provincial government. As previously stated, the ability of the provincial government to increase the minimum wage is dependent on its available resources. The provincial government, perhaps considering to increase the minimum wage, in hopes of decreasing suicide rates, simply might not be able to due to their lack of resources – inflation is a large contributor to the difficulty in increasing minimum wage. Although an irregular occurrence, the government sometimes decides to implement “Wage Restraint Regulations”, which creates a cap for the minimum wage and only happens in cases of emergency – this is done out of hopes of reducing spending to curb inflation.
An interesting point mentioned in the study is that the results of the study conducted in the US differ from the results found in Canada, and how this could be due to Canadian healthcare. This issue brings another very large issue, to light, an issue that would extend far past the scope of this class – the lack of healthcare in the US.
Low minimum wages in the US means that the employee must save their money for commitments and expenses, and that they have less money to allocate to “fun” spending. Unfortunately, due to the lack of healthcare in the US, a simple doctor’s visit, or a major health procedure, can bleed the bank account dry. This is an incredible amount of pressure to place on the shoulders of the average citizen, as it essentially states “get a high paying job to afford to live”, explaining why this is not found in Canada since regardless of financial status, healthcare is guaranteed.
Unfortunately, the case of low minimum wages is not one that can easily be resolved, and it most certainly cannot be resolved through communication between the employer and employee since the matter reaches past them and rests in the hands of the provincial government. In the case of the US, the root of the issue rests in the hands of the federal government and their desire to discuss terms of a proper healthcare plan with the States. Upon reading the study, I would not go as far as to say that increasing minimum wages would decrease the suicide rates, rather, accounting for the variety of factors that directly relate to a citizens financial security – such as healthcare, wages, and other expenses – and trying to alleviate the pressure from the employees shoulder, could result in a minimal decrease in suicide rates.
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