This only works if we don't live in a global economy. When you apply it to the real world, the one we live in right now, keeping wages low = more poverty and that's it. Regardless of any new corporations coming to town to create jobs, regardless of any money pumped into industry etc etc. None of that matters. Raising the wage will force some out of business, that's unfortunate, but also the way it's supposed to go in this "capitalist" society we have. If your business can not change with the times, sorry, time to move on.
Now turning the economy back into an industrial one, or one where it's based on what Canada creates for Canada would be great. But again, in a global economy, that is never going to happen. Not without huge (likely tragic) events taking place. So again, it's good but there's no way in hell I'm making people wait for that to occur.
also, "draconian socialist government" as a phrase doesn't make sense. I'd like you to actually look up what socialism is. I'll give you a head start, if you're reading something that says socialist governments can be draconian, you should find another source.