The melancholy truth that America’s leftists, and the young people they exploit for political support, stubbornly refuse to learn is that the true minimum wage is zero. When the cost of labor is increased beyond its true value by government fiat, employers learn to make do with fewer workers.
The primary factor containing the damage from such market responses to increased labor cost is customer satisfaction. Beyond a certain point, it becomes impossible to cut jobs or productivity suffers too much. In a service-oriented business, such as food service, the customers have unhappy experiences at understaffed establishments and take their business elsewhere.
However, the CEO of one large restaurant chain warns that customers are now comfortable enough with automated systems to allow another huge round of job cuts in the near future. To put it simply, the government is pricing labor out of the market, and machines are standing ready to fill the gap.
The CEO in question, Ron Shaich of Panera Bread, didn’t really phrase this as a warning during his most recent quarterly earnings call. As reported by Business Insider, it was more like a confident prediction. “Labor is going to go down,” he said. “And as digital utilization goes up – like the sun comes up in the morning – it is going to continue to go up.”
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10 comments:
the CEO of one large restaurant chain warns....
CEO in question, Ron Shaich of Panera Bread, didn’t really phrase this as a warning...
one of the dumbest articles ever.
At least my order will be right....
Just a logical response to a higher minimum wage standard. More proof that the road to hell is paved with good intentions! Corporations only care about their bottom line. The consumer dictates wither or not they will be willing to pay the higher prices that will be passed on to the consumer. People will vote with their wallets.
unless we build and utilize these machines we will suffer... the last thing we need are less jobs
Driverless cars, trucks and buses will cause job loss also. However, people will have to maintain those computerized machines. The labor force is always evolving.
Once the minimum wage hits a certain point it makes sense for technology to step in. Simple economics. Focus on your education and you will not be working for minimum wage.
Anyone been in secu bank on Mt Hermon rd lately? No tellers just machines, they will all be laid off around the 20th of this month.
The businesses can also take depreciation expenses on the machines. They can't do that with humans.
it will be a big improvement in customer service.
Because $2.10 an hour for a waitress is "overpriced". And $7.85 an hour breaks the bank for a cashier position.
If a company is that close to the edge, that these wages will bankrupt them, they're on the brink of failure anyway.
Keep replacing people with machines, and there will be no customers using those machines anyway...since they'll have all been replaced by machines too.
Labor overpriced? What do they want, slaves?
Good thing about that, slaves don't have to worry about being laid off or fired. They have to be sold!
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