Fast food workers may just coerce themselves out of job; they’re no longer cost effective.
Nothing personal Lefties, it’s simply an economic reality. When businesses are faced with demands for ever-increasing wages – for unskilled, entry-level positions – they’ll be forced to adapt ~
Yes. Sometimes, reality bites ~ Former McDonald’s CEO Warns Robots Cost Less Than Paying a $15 Minimum Wage ~
Democratic lawmakers and advocates from across the country have fought to raise the minimum wage to $15 an hour. Those in support believe the policy could help address poverty, but critics say it could also lead to less employment opportunities. (Former McDonald’s President Ed Rensi) noted it will be cheaper for many businesses to purchase a $35,000 robot instead of hiring a new employee at $15 an hour.
“If you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries,” Rensi told Fox Business. “It’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe.”
Futhermore, arbitrarily driving up wages will have an adverse effect on the entire economy ~
“It’s not just going to be in the fast food business,” Rensi continued. “Franchising is the best business model in the United States. It’s dependent on people that have low job skills that have to grow. Well if you can’t get people a reasonable wage, you’re going to get machines to do the work. It’s just common sense. It’s going to happen whether you like it or not.”
As I’ve noted here before, the enforcement of some capricious “minimum wage” actually hurts the very people it purports to help. Earlier this year, the Washington Free Beacon reported on a recent study which found that franchise workers will lose out on minimum wage hikes ~
The Employment Policies Institute, a free-market think tank, surveyed hundreds of franchise and non-franchise businesses to see how they would react to steep minimum wage hikes such as the $15 rate supported by Sen. Bernie Sanders (I., Vt.) and former Maryland Gov. Martin O’Malley and the $12 plan touted by Hillary Clinton. The study found that a majority of franchise businesses would cut their workforce, turn to automation, or reduce hours to cope with $15 wages […]
EPI research director Michael Saltsman said that wage policies targeting franchisees represent a tactical shift by unions. Some cities have passed wage laws that exempt unionized businesses, giving small business owners an incentive to force workers into labor groups.
The Service Employees International Union has mounted a years-long campaign against McDonalds demanding $15 wages as it works to rally support among workers. These same workers could be hurt the most by these policies, according to Saltsman.
“A $15 minimum wage is a terrible idea for all businesses, whether they’re an independent store or a franchisee contracting with a national brand. The notion that one group can better absorb this mandate than another is a pleasant fiction maintained by the SEIU, but this study shows that it’s not factual,” Saltsman said.
Like pretty much everything the progressives promote, their minimum wage fantasy sounds wonderful, but it’s just another utopian pipe dream. Sooner or later reality will intrude.
