As The Federalist Papers Project has discussed in many, many reports, cities and states that mandate higher wages for various jobs than what those jobs are actually worth will drive more people into unemployment because of their economic ignorance. It is simply a fact, and Seattle is one of our most recent examples.
Let us also remember that once these employees are booted from their jobs, going from a minimum wage to a zero wage, their replacements will not be other people being paid a higher rate, but artificial workers that do not whine, complain, protest, or require breaks.
Sure, they will need some maintenance and repairs, but fast food businesses may see the metal and plastic workers as a viable alternative to going out of business, and that’s exactly what dozens of California fast food joints are now doing, as CBS Sacramento reports:
As fast food employees across the U.S. continue to protest for higher wages, a California chain restaurant has decided to hire a new staff member that works for free. The competition for the company’s low-wage workers: a burger-flipping robot named “Flippy.”
CaliBurger has announced they will be installing the high-tech replacement in 50 of their locations around the world. “Flippy,” the robotic kitchen assistant, was created by a California startup company called Miso Robotics and is expected to roll out in 2018.
“We are excited about the impact Miso’s AI-based solutions will have for the restaurant industry,” Miso’s David Zito said. The CEO added that their creation will likely push workers out of their current jobs.
“Humans will always play a very critical role in the hospitality side of the business… We just don’t know what the new roles will be yet in the industry.”
— Mechatronics News (@MechatronixNews) July 17, 2017
CBS Sacramento states that it is “ironic” that these robotic replacements are happening in progressive states, but anyone who understands the basic principles of economics sees that this is no irony; it’s completely predictable.
There is a certain supply and a certain demand for labor. Just as with any physical good, labor is in and of itself a commodity subject to the same laws of economics. The supply and demand curves will meet at equilibrium, where the price point is. That price point will naturally fluctuate with changing market conditions.
However, when the State attempts to artificially alter the supply and demand curves, it throws them out of equilibrium and people end up suffering consequences because of that.
“This wage is not sustainable for a lot of companies… in that $5 increase, you’re talking about $12,000 increase per employee… where does that money come from,” warned Peter Tateishi of the Sacramento Metro Chamber.
The economic reality is that fast food jobs are low-paying positions, but that’s because they are relatively simple jobs that do not require special skills or technical training. There’s a reason why physicians and lawyers are paid large amounts of money and fast food workers are not: supply and demand.
Nonetheless, among the Left, there is this foolhardy notion that there is such a thing as a “living wage” which every single person deserves regardless of what job they do, and regardless of the economic impacts of such a decree.
These progressive leftists will claim that they were helping the poor, but they are doing the poor and entry-level workers a huge disservice by pricing them out of work. It’s incredibly disingenuous to claim that economically illiterate policy helps anyone.
That is, anyone except the grievance culture politicians who are fueled by the rage of the masses, begging their overlords for this and that, screaming to tear down the capitalist machine of oppression.
Please, give me a break.