ROTHENBURGER: Fears of new minimum wage adding to inflation are well-founded

The explanation is that the minimum wage is going up a dollar and the increase is necessary to maintain the current level of service. It’s actually increasing by $1.10, which equates to 6.9 per cent, not 15 per cent.

I don’t fault them for it — they’re experiencing significant inflationary pressures from elsewhere, too, but the minimum wage is a big factor.

The 6.9 per cent was based on the inflation rate last year, but raising the wage by that much doesn’t answer inflation, it adds to it.

I will continue to patronize this particular business because the service is excellent, but I won’t pretend it doesn’t hurt the old pocketbook.

The example I’ve just provided is pretty good evidence that claims by the business community that the new minimum wage will inevitably result in us having to pay more at the cash register is well founded.

And while we’re on the subject of inflation and price increases, how about that new tip policy at Starbuck’s? When you buy a decaf latte or whatever, the credit card machine now includes a prompt.

You have options of a dollar, or two dollars and so on, and the cashier politely lets you know you have to make a choice before you tap. The other day, I panicked and unthinkingly tapped on two dollars, later realizing I’d just given a 50 per cent tip for being handed a coffee.

You have to be careful out there.

I’m Mel Rothenburger, the Armchair Mayor.

Mel Rothenburger is a regular contributor to CFJC Today, publishes the ArmchairMayor.ca opinion website, and is a recipient of the Jack Webster Foundation Lifetime Achievement Award. He has served as mayor of Kamloops, school board chair and TNRD director, and is a retired newspaper editor. He can be reached at mrothenburger@armchairmayor.ca.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or Pattison Media.

by Mel Rothenburger

ROTHENBURGER: Fears of new minimum wage adding to inflation are well-founded

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