Lower-level jobs, those that require little or no skills to perform are often those most impacted by minimum wage laws. The idea is to force companies to pay employees what is considered by the government to be a minimum, or perhaps a livable wage, regardless of the value that job adds to the final product or service. What the government cannot do is mandate that a firm remain profitable regardless of the regulations placed on it including minimum wage laws.
Since firms go out of business putting all their employees out of work when they cannot generate a profit, mandating what their expenses must be for wages creates a problem for which there are few solutions. One is to find ways of automating jobs that simply do not justify payment of the government mandated minimum wage. Hence, people lose their jobs to machines.
Here’s an example of what happens:
With minimum-wage hikes come job cuts. It’s Economics 101.
After New York City and California mandated $15 minimum-wage laws, fast-food chain Wendy’s reacted, announcing Thursday its plans to make available self-serving kiosks in its 6,000-plus restaurants across the country by year’s end.
In addition to using the technology to cut down on labor costs, Wendy’s President Todd Penegor noted on the company’s quarterly conference call, that some of its franchise locations have been raising prices to offset the minimum-wage increase, according to Investor’s Business Daily.
This is no surprise. Increased costs must be met by increased revenue or a reduction in costs elsewhere in the business or it eventually goes broke. Why is that so hard to understand? It goes back to the old adage that liberals think that businesses will continue to function no matter what the government does to obstruct them.
“Wendy’s Penegor said company-operated stores, only about 10 percent of the total, are seeing wage inflation of 5 percent to 6 percent, driven both by the minimum wage and some by the need to offer a competitive wage ‘to access good labor,’” IBD reported.
It’s only a matter of time until McDonald’s, Burger King and others follow suit.
There it is. And it’s going to change our vernacular as well. No longer will be able to use the term “burger flippers” because there will be none left.
Source: Washington Times
Photo: Popular Resistance
Businesses just can’t afford 15. Machines are cheaper in the long run.
The whole $15 an hour thing is a dodge by politicians to take the focus off of them for their miserable handling of the economy. relief is on the way.
And whose fault is this, government intrusion of private business and people who think I will pay $10 for a sandwich! Good luck with that!
Democrats idiots, meet the REAL WORLD.
Good alternate to Booger King.
In a way sad. Fast food is how many young people are introduced to the responsibilities of holding a job. Fast food jobs have never been meant to be a career unless you were in upper management.
Democrats screw up again
Tim Trahan so right
and these idiots who wanted $15 hour to flip burgers did not see this coming? the rest of us did. automated means fewer low paying jobs and maybe one higher paying job for the guy who sets up and repairs/maintains the machine.