Ah, the ongoing minimum wage battle. Some are for it, some are against it, and some think it will lead to judgment day.
Economists have been predicting how automation will impact the global job force for years, but none of these studies have been based on whether or not the wages in a certain sector were to rise. Luckily, we have ex-McDonald’s CEO Ed Rensi to clear that up for us and he did so in an appearance on Fox Business’ Mornings with Maria.
Reins went so far as to say that an increase to $15/hr minimum wage would result in “job loss like you can’t believe” before eventually allowing the robots to take over. Man, it’s just like John Connor said it would happen… right?
“I was at the National Restaurant Show yesterday, and if you look at the robotic devices that are coming into the restaurant industry—it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries.” he said.
Reins then admitted that “franchising businesses” like fast-food restaurants are just screaming out for automation because those businesses are “dependent on people who have low job skills that need to grow.”
“If you can’t get people a reasonable wage, you’re gonna get machines to do the work. It’s just common sense. It’s going to happen whether you like it or not.” He continued.
Naturally, whatever calculations he didn’t didn’t account for current $15-an-hour initiatives like the one in Seattle that allows businesses to pay employees under the age of 18 less than the $15/hr minimum wage. It should be noted, however, that their data is not yet conclusive since the wage is currently $13 and there’s another five years of ramp-ups. That said, initial reports show that “the sky is not falling.”
Rensi also insisted that the nationwide boost in minimum wage would “keep people on the government dole.” (Not Bob Dole, mind you)
However, studies show the exact opposite. Higher mimic wages wouldn’t increase the demand for government services like welfare, as Rensi claims, but the current minimum wage sure does. And it’s also impossible to afford a one-bedroom apartment on a 40-hour workweek at minimum wage without spending more than 30% of your income on rent. As it stands, America’s current minimum wage is unlivable and creates higher demand for government services such as welfare.
So no, Mr. Rensi. The boos would not “keep people on the government dole.” But go ahead and keep mouthing off, since you might be right one day and then you could say…