Do not think about, write about or deal with human behavior without determining the effects of incentives. It’s not their money, of course they’ll waste it.
When amateurs intervene in the market, and politicians are always amateurs when they interfere, markets adjust. This is one such story.
McDonald’s Workers Don’t Need To CRY Over Minimum Wage for Very Long
This is precisely what I warned these dingbats about. The Fight for 15! crowd is going state to state demanding that the minimum wage be raised to $15 an hour. In a number of states they have succeeded: California, Oregon, Washington and New York come to mind, with others following suit. Franchises and small businesses cannot afford this in the current market, so what does McDonald’s do? They automate. Fast food outlets all over the place are now going to computerized kiosks where you place your order via a touch screen. Your food is served basically by a robot at the counter. You pay via a computer as well. The only humans that will be needed in the end are probably a manager in case something goes wrong, a cleaning staff and maintenance. And even those can be automated at some point in the future. They are developing technology that can be implemented in restaurants so they automatically clean themselves. It’s a brave new world folks.
At McDonald’s, they’ve combined a computerized kiosk with a brand new menu, and it appears to be a big hit around the country:
So, what’s the reason for these changes?
Some people suspect it’s no coincidence these advances at Mickey D’s have corresponded with the protests by SEIU and other unions, along with fast food workers, demanding $15/hour pay.
As a result, cities including Los Angeles and Seattle have voted to dramatically raise their minimum wage.
The minimum wage idiots have just protested themselves right out of work. The automated McDonald’s outlets are never rude… you don’t get food poisoning and they speak a variety of languages. You don’t wait forever and they get your order right… the first time. Plus, in the long run, food will be cheaper. What’s not to love here? Whereas this is very new and novel here in the States, in Europe, these are popping up everywhere. In Australia, McDonald’s has 300 of these outlets and people love them. The protesters are about to go from $15 an hour to $0 an hour. Way to go!
This is similar to the United Auto Workers, the Steel Workers and many others. Their members are not working at jobs with great benefits and wages. Success. You can’t see these jobs, but you can see the few workers working at the new minimum wage. As Bastiat says, it’s the unseen that’s the most telling.
Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Power Teaching: How to Find Someone to Teach Your Child when the Education System has Failed.”
Cui Bono–Cherchez les Contingencies