Does mandated federal and state minimum wage increases help those struggling on low paying jobs? Or does it simply give more jobs to robots?
In this opinion piece from the Wall Street Journal, The Minimum Wage Should be Called the Robot Employment Act, Mr. Pudzer makes the case that the increasing minimum wage will do nothing to help low wage earners and will, most likely, force more workers out of the market place as employers, restaurants especially, automate.
It’s already happening. McDonald’s kiosks are rolling out all over the country. Wendy’s is doing the same thing, and as Mr. Pudzer explains, a California burger joint is going a step further by hiring robots to grill, flip burgers, and put the patties on the buns.
There is no mystery here. Many places simply can’t make a profit where, especially in some areas, the minimum wage is going to hit $15 an hour in the next couple of years. Who will this hurt? Mostly inexperienced youth and it will disproportionately affect minorities. Liberal governance is once again going to be hurting the very population which they say they want to help. But government can’t control capitalism to the degree it needs to in order to for minimum wage laws to work. In order for that to happen, you need to shift everything into a highly controlled mixed if not bordering on command economy. Oh, and with that, you’ll get a loss of freedom and more widespread poverty as everyone becomes the same: unproductive and poor.
I defer to the experts on things like this. One such expert I respect and quote a lot is Thomas Sowell. Do yourself a favor and spend some time on Youtube marveling at his logical and concrete examples. He’ll tell you what minimum wage actually does, it robes the poor and the youth of valuable work experience. The only way a youngster is going to get experience – learn how to show up to work on time, learn skills, learn to function as a subordinate, etc… – the only way someone is going to get that experience is to get an entry level job. The unemployment rate for under 25 is already high. A higher minimum wage is not going to help that. In fact, it’s going to do the opposite because jobs will be scarcer as companies “hire” robots to fill positions rather than pay an unskilled 18 year old $15 an hour.
I wish the government would let the market work. Of course, it should look out for abuses and step in when someone is clearly being taken advantage of, but it should stay out of private agreements between individuals. If I agree to work for $8 an hour, I should be allowed to do so, and it is a death to freedom and individuality when I’m told I’m not allowed to work for $8 an hour. But I am allowed to stay at home and gain no experience and no income.
If we don’t let the market work, then we are only giving way to a robotic takeover. I’m afraid there’s no stopping it now.
One response to “Minimum Wage Robots”
Maybe the answer is not in raising the minimum wage to $15/hr but to control the cost of other essential goods and services: rent, food, medical care. Rents are high because of market economics, where the demand is high but the supply is limited. Food is high because of the high cost of transportation, warehousing, etc., now that we demand food from all over the country and the world all year long. Medical care.. Oh let’s not get into that!! No answers here, just possibilities.