Economic Illiteracy: With last week’s one-day strike, fast-food workers sent a clear message: They want the minimum wage raised from $7.25 an hour to $15. But they should be careful what they wish for; they just might get it.
It isn’t hard to see what a doubling of the minimum wage would do in an industry that pays out an estimated 70% of revenue to workers: Hundreds of thousands would lose their jobs overnight.
They don’t see that. They are blind to it. All they see are people, specifically CEOs who make “millions” and bosses who get “rich” so they want their “fair” share of it. They have no understanding of economics. They understand things on child’s level- They want that toy and they want it now! And if they don’t get it they will cry and bawl until someone gives in.
And when the McDonald hamburger now cost $10.00 because of the labor cost increases and the restaurant they are working at goes down in flames, they will still blame “the CEOs” for being too greedy.
It’s what I have called “Unenlightened Narcissism” and the real problem is that THEY DON’T WANT TO BE ENLIGHTENED!
They will resist any attempt to enlighten them as trying to corrupt or trick them.
So I say just fire their asses and move on. You can’t save everyone from themselves.
The average fast-food employee makes $8.94 an hour, according to the National Employment Law Project. Unions and workers want to boost that to $15 an hour. Fine, except most who now earn $9 an hour are young with little education and few skills. To be blunt, they’re not worth the extra money. They’ll be fired.
So who will do their jobs, you ask. A more apt question is what will do their jobs. Because they may go to robots. Or computers. Don’t laugh. When labor costs rise, technological substitutions suddenly make economic sense.
It’s already happening in Europe, where it costs a lot to hire a worker, McDonald’s has installed 7,000 new ATM-style machines that take orders and payments. No muss, no fuss, no arguments, no misunderstandings — and no minimum wage at all. Just a one-time cost for the machine, plus maintenance.
To the point:
With a beep, a buzz and a whir — and maybe even a little sizzle — the world’s first fully-automatic hamburger machine can prepare, cook and serve a perfect custom-made burger without a single human hand being involved.
A San Francisco startup is taking the Silicon Valley attitude into the fast food market and hoping to revolutionize what they call “the most labour intensive industry in the country.”
Featuring glass tubes filled with lettuce and tomatoes, a meat-grinder, bun slicer, oven and bagger, the alpha machine is part Rube Goldberg, part Jetsons and promises to be the first step in burger evolution since McDonald’s proliferated around the world.
It can produce a custom-made, freshly ground burger, baked to order at a rate of 400 per hour. The machine will add the requested toppings, slicing tomatoes directly onto the burger, and pop out a neatly-wrapped sandwich ready for human consumption.
The makers, Momentum Machines, claim that their invention “does everything employees can do except better.”
The oven employs “gourmet cooking techniques never before used in a fast-food restaurant, giving the patty the perfect char but keeping in all the juices,” according their website.
“It’s more consistent, more sanitary,” and the company claims, “the labour savings allow a restaurant to spend approximately twice as much on high quality ingredients.”
Momentum is planning on demonstrating their invention in a soon to be opened restaurant in San Francisco before franchising it out to any restaurant, convenience store, food truck — or potentially even vending machine — that wants it.
As for all those grill tenders and line cooks made obsolete by the contraption, Momentum offers discounted technical training and says that the money saved on labour will be recycled into restaurant expansion and new job creation.
Plus, according to the website, “the general public saves money on the reduced cost of our burgers. This saved money can then be spent on the rest of the economy.”
It’s a delicious win-win. (The Star)
As ObamaCare raises the cost of labor for fast-food chains, and with talk of a doubling of wages, look for the same equipment to be used here too. And it won’t just be ATMs.
Momentum Machines, a San Francisco-based high-tech company, has created the Alpha, a robot that can make up to 360 hamburgers in an hour — and pays for itself in a year.
(see above) 🙂
Left-wing talking heads in the media counter that McDonald’s or Burger King or Taco Bell or whoever could simply take money “out of profits.” But this defies all understanding of economics.
But it fits with the narcissism of the Left and it also is perfect bait for the unenlightened.
First, 80% of McDonald’s outlets are franchises, owned by a person who pays royalties for the right to run a burger restaurant. These people do not have massive profit margins. If costs rise, they’ll fire people.
But the Left doesn’t care about that. It’s relevant to the Agenda.
Besides, they’ll view mass layoffs as a a sign of “corporate greed”. At least that’s what they will tell the unenlightened en masse.
Even if you did shrink profits, who would that hurt? The middle class, that’s who. Their 401(k)s and IRAs are loaded to the gunwales with fast-food shares. And when they go out to eat, they’ll pay higher prices.
But that will be corporations fault, according to the Left. 🙂
Workers need to get real: If you’re not worth $15 an hour, a robot may take your place. And it won’t strike. (IBD)
But reality is the last thing the Left can contemplate. Fear, Hatred, anxiety, stress, these are the things that make most Liberal “leaders” happy.
A stressed out, economically tapped out, hate-filled constituency will Vote for them and demand more control, time and again, and they will fill their kids with the same hatred and fear!
What could be better! 🙂