At first glance, raising the minimum wage in Dominica to $12 an hour sounds like a great idea. After all, who would not want to earn more money? But sometimes, things that sound good on the surface can have serious hidden consequences, especially when it comes to the economy.
Let us break this down in the simplest way possible.
Where Does The Extra Money Come From?
When wages go up, businesses have to pay more money to their employees. That money has to come from somewhere. In big countries like the United States or Canada, there are strong industries and large economies to support this. But Dominica does not have that. We rely mostly on three things: selling passports (CBI), small-scale farming, and a struggling tourism sector. That is not enough income to support a sudden jump in salaries.
What Do Small Businesses Do?
Most businesses in Dominica are small family shops, vendors, or micro-enterprises. They operate on very thin profit margins. If the government forces them to pay $12 per hour, they do not magically get more money. So they are left with three options:
- Raise prices – If a business has to pay workers more, they have to raise the cost of their goods or services. So the bread, gas, or repair people get more expensive for everyone.
- Lay off workers – If the business can not afford to keep all its staff, it will terminate jobs or give fewer hours.
- Shut down entirely – Some businesses just will not survive the extra cost.
That means fewer jobs, higher unemployment, and higher prices. So yes, you may earn more if you are lucky enough to keep your job, but the cost of living will rise too, even more than the wage increase itself.
It Is An Artificial Stimulation.
When wages are raised suddenly, without any real growth in the economy to support it, like more local production, better exports, or strong tourism, it is called Artificial Stimulation. It is like blowing air into a balloon that is already stretched. It might look bigger for a moment, but eventually, it pops.
The wage increase gives the illusion of progress, but the system underneath has not changed. The same small businesses, the same limited income sources, the same import-heavy economy, all of that is still in place. So the money has to come from somewhere else: higher prices, job cuts, or government debt.
What Should We Do Instead?
Instead of rushing to raise wages, we should focus on building a stronger foundation:
- Support small businesses to grow and hire more.
- Reduce our dependence on foreign loans and imports by investing in our local economy.
- Train people in skills that attract higher-paying jobs naturally.
- Develop manufacturing, tourism, and tech industries that can bring in real, long-term income for the country.
Once the economy grows and becomes more productive, then we can talk about raising wages because at that point, the country can afford it naturally, not by force.
When An Economist, Thompson Fontaine Chooses Politics Over Truth.
Now, let us talk honestly about Thompson Fontaine, a man with a PhD in economics. That is not just a title; it means he has been trained to deeply understand how economies work, especially in small developing countries like Dominica. He has worked internationally. He understands monetary policy, debt, inflation, and labour markets. Few people in Dominica are more qualified to speak on economic matters than he is. So why is he not telling you this?
Because Fontaine knows this is not how sustainable development works. He knows our economy is too narrow, too import-dependent, too fragile to take on these kinds of artificial pressures. He knows that forcing businesses to increase wages without increased productivity will lead to higher prices, layoffs, business closures, and inflation, especially in a country like Dominica, where nearly everything we use is imported.
So when someone this educated ignores all that and pushes a feel-good message without facts to back it up, you should stop and ask: WHAT IS HE AFTER?
The answer is simple: Votes And A Job!
Fontaine deliberately avoids speaking to our people as an economist; he speaks as a politician chasing power. And in doing so, he is willing to oversimplify, distort, and hide the truth just to win applause and votes. That is not leadership. That is dishonest and manipulative. And sadly, it is exactly the kind of behaviour that has kept Dominica trapped in a cycle of poor leadership, economic dependency, and false hope for over three decades, people who know better, choosing to tell us what sounds good instead of what is real. Fontaine is not one of the ignorant; he knows the facts very well. That makes his silence on the real challenges of a minimum wage increase all the more troubling and raises serious questions about what he truly hopes to gain.
Fontaine knows better. And that makes this even worse. Because when someone who understands the risks still makes reckless promises, they are not being bold, they are being irresponsible. If he truly cared about building a stronger, more resilient economy, he would be talking about how to grow the local private sector, how to boost productivity, how to reduce imports, how to attract real investment, and how to create high-value jobs, not just raising wages on paper with no solid foundation beneath it.
So before you clap for that catchy promise, ask yourself:
- Why didn’t the economist tell you the truth?
- What does he think you will not notice?
- What does he hope to gain while you carry the cost?
This is not leadership; it is political marketing dressed up in economic language. And Dominica deserves better.
Do not just take our word for it; do your research. Look into how minimum wage increases have affected other countries, especially those with small or developing economies. Understanding the facts for yourself will help you make informed decisions about what is best for Dominica.
Everyone deserves a better life, and no one is against higher wages. But if we do it the wrong way, we will hurt the very people we are trying to help. Let us fix the foundation first, then build the house.
Team DRP