Wednesday, October 29, 2014

McDonald's "Sneaky" Response to Obama's Minimum Wage Hike Is Perfect

McDonald's "Sneaky" Response to Obama's Minimum Wage Hike Is Perfect

McDonald’s “Sneaky” Response to Obama’s Minimum Wage Hike Is Perfect

Moving to protect its customers and shareholders from a significant cost increase and business downturn respectively, McDonald’s is taking action.
In their earnings report released Tuesday, the fast food behemoth inserted a hint at their plan to control costs, according to the Daily Caller, “By the third quarter of next year, McDonald’s plans to introduce new technology in some markets ‘to make it easier for customers to order and pay for food digitally and to give people the ability to customize their orders,’ reports the Journal.”
The DC continues, “Mr. Thompson, the CEO, said Tuesday that customers ‘want to personalize their meals’ and ‘to enjoy eating in a contemporary, inviting atmosphere. And they want choices in how they order, choices in what they order and how they’re served.'”
That translates to “we’re going to test out automated kiosks to take orders–no more cashiers.” McDonald’s may also be considering automation not just behind the counter but in the kitchen as well. As Business Insider reported in August, a company named Momentum  Machines has developed a machine that can produce approximately 360 hamburgers per hour, replacing countless employees.
While automation was always going to come to fast food, as it does to virtually every industry, the “Fight for $15″ movement has doubtless hastened its development.
Faced with doubling employee compensation (in some cases), businesses employing minimum wage workers are desperately looking for ways to keep from passing on increased costs to customers. Under these circumstances, automation makes even more sense from employers’ perspectives because it solves an urgent problem.
A local McDonald’s also made a mark in the national conversation. They put up one of the automatic “machines” to replace cashiers with a sign saying, “Coming Soon.” Well played.
McDonalds' response to minimum wage increase
This story demonstrates one reason minimum wage laws promote unemployment. They provide strong incentives for businesses to replace expensive employees with inexpensive automation. If, however, employers could offer lower wages, some workers would be willing to work for less, leading to lower unemployment and increased advancement opportunities for those workers.
In short, the left’s call for higher wages is self-defeating–setting out to avoid one circumstance (poverty), ends up causing it (vis a vis unemployment).
Please share this on Facebook and Twitter if you look forward to ordering your hamburger at a kiosk, having it made in less than one minute, and getting it exactly as you ordered…all for less money than you’re paying now. The future looks delicious.

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