MCViewPoint

Opinion from a Libertarian ViewPoint

Horrific Cruelty – LewRockwell

Posted by Martin C. Fox on July 12, 2017

https://lewrockwell.com/2017/07/walter-e-williams/horrific-cruelty/

Panera Bread, a counter-serve cafe chain, anticipates replacing most of its cashiers with kiosks. McDonald’s is rolling out self-service kiosks that allow customers to order and pay for their food without ever having to interact with a human. Momentum Machines has developed a meat-flipping robot, which can turn out 360 hamburgers an hour. These and other measures are direct responses to rising labor costs and expectations of higher minimum wages.

San Francisco might give us some evidence for what a $15 minimum wage does. According to the East Bay Times, about 60 restaurants around the Bay Area closed between September and January. A recent study by Michael Luca of Harvard Business School and Dara Lee Luca of Mathematica Policy Research calculated that for every $1 hike in the minimum hourly wage, there is a 14 percent increase in the likelihood that a restaurant rated 3 1/2 stars on Yelp will go out of business. Fresno Bee reporter Jeremy Bagott says that even some of San Francisco’s best restaurants fall prey to higher minimum wages. One saw its profit margins fall from 8.5 percent in 2012 to 1.5 percent by 2015 (http://tinyurl.com/y6wy3gne). Most restaurants are thought to require profit margins between 3 and 5 percent to survive.

The best way to help low-wage workers earn higher wages is to make them more productive, and that’s not accomplished simply by saying they are more productive by mandating higher wages.                                                                                                                                  
Minimum wage law. Otherwise known as the robotics engineering full employment act.

Be seeing you

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One Response to “Horrific Cruelty – LewRockwell”

  1. Doug Rowley said

    Years ago unemployment comp workers were going to go on strike for higher wages. The state started mail claims in anticipation of this. Previously claimants had to appear in person every week to sign for a benefit check. After the short strike the mail claims replaced the standing in line. Within six months over half of the unemployment comp personnel were gone. Push back now is, of course, automation as your post alludes to.

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