Re: Increased minimum wage will lead to more restaurant automation and loss of 750,000 jobs
posted at 2/2/2014 5:15 PM EST
In response to ronreganfan's comment:
In response to steven11's comment:
In response to ComingLiberalCrackup's comment:
Ten years ago it might have seemed far-fetched that a customer could order food in a restaurant without speaking to anyone. But it’s a reality now as service employers across the country—including Chili’s, Chevys Fresh Mex and California Pizza Kitchen—introduce tabletop ordering devices. A few clicks on an iPad-like device and the food is on its way.
Technology has made these changes possible, but that’s not what’s driving their implementation. Steady federal and state increases to the minimum wage have forced employers in retail and service industries to rely on technology as the government makes entry-level labor more expensive. Now Democrats are pushing to raise the federal minimum wage to $10.10 from $7.25 at the behest of President Obama, who argued in his State of the Union address that the increase would “help families.” Lawmakers should consider the technology trend a warning.
Microsoft co-founder Bill Gates made the connection in a recent interview on MSNBC. Asked if he supported a higher minimum wage, Mr. Gates urged caution and said the policy would create an incentive for employers to “buy machines and automate things”…
…”Efficiency” is the positive public face of these changes. Chris Sullivan —a co-founder of Outback Steakhouse who now works with MenuPad, a tablet-ordering company—explained his product to me this way: “It increases productivity, allowing servers to wait on more tables.” That means tips may increase for some.
But the flip-side of more efficiency is a 20%-25% drop in the number of waitstaff necessary to run a restaurant. Currently, a worker who earns tips can be paid below minimum wage, allowing tips to make up the difference. But the $10.10 proposal would raise the minimum tip wage to $7.07 from $2.13, a 232% spike. With roughly three million current tipped jobs in the U.S., that could amount to as many as 750,000 fewer entry-level opportunities if implemented widely."
Far from the first time progressive's good intentions cause ruination.
Minimum wage going up will never hurt the level of service in restaurants. Minimum wage is not the issue. Top executives with their buy outs and gov't offcials under the radar who do nothing yet earn six figures are the problems.
Class envy? Really? Is that all the regressives got?
Five, going onto six years into the most progresssive administration ever, and guess what? All your plans are failing. The economy is only growing at all because stuff needs to be replaced, and the centerpiece health care reform is fundamentally transforming the best health care system in the world into something like what they have in Cuba.
We are poorer (middle class incomes down), less free (NSA spying on Americans, IRS targetting conservatives), and, we are less safe (Benghazi). That is the regressive/Obama record.
No wonder, the focus on income inequality, i.e. class envy. Got to keep the low information voters thinking the CEO bosses are keeping them down.
We are coming out of a recession which explains most of the lowered income. Speaking of strawmen..most of those high incomes which existed before the recession were based on strawmen themselves..specifically the strawman of artificially inflated housing prices..the bubble that was doomed to burst..as it did.
Added to that is that now the corporate environment is greedy and empowered with many of the largest corporations with only their record breaking profits in mind. Explain to the class how corporations are raking in record profits, Wall St. is up and yet main street wages are lower than they ever were..and the gap between rich and poor in the US rivals that of 3rd world countries.
I suggest to you that most of this economic environment is the direct result of the Citizen's United decision. Money talks and those with deep pockets and purchase any politician they want...legally.
As far as the argument from the right that higher wages result in job losses and more automation...explain Costco. I love to support this company with my shopping dollars because they get it.