Sunday's The News-Review had the $15 minimum wage a front-page story despite logical evidence opposing it.
President Joe Biden want's to double mandated earnings. That would raise labor costs for restaurants and services 600% according to the CBO.
Labor cost increases are predictable in any business. Doubling it, even over time, accelerates the economic term “creative destruction" that I studied in Economics 1A. The creative part of this are "pink-slips" favoring automation and reducing staff.
I’ve chronicled the deep flaws with minimum wage hikes in these pages before. The negative consequences are well documented much to the chagrin of labor activists who believe raising wages is an emotional right. Business has little emotional interests in wages and if greater productivity is expected to offset higher labor costs then fewer staff are needed. That's self-evident.
Self-order at McDonald’s or Costco's self-checkouts are examples for eliminating expensive service jobs.
Robots don’t file grievances for higher pay. A $15 minimum wage will accelerate worker replacement in all service industries!
The University of California in 2007 credited minimum wage hikes to increased automation and worker replacement. Liberals still fume about “unbridled” automation, but emphasizes the virtues of raising wages in the same breath. You can’t have it both ways when the price-sensitive consumer has choices.
Raising the minimum wage to $15 an hour should be a nonstarter amid a pandemic that has service workers and store clerks on the ropes. Are teachers next?
Supporters of minimum wage who find more self-services should remember that emotion isn't involved in labor costs. Bagging your own groceries or ordering extra pickles on your burger was previously done by a worker who's now not.
Eliminating the pickles will reduce your burger's price, but a $20.00 Mc-burger — No way!