There has been much discussion and debate over whether to raise the minimum wage, and this debate is still going strong. The positions range from minimum wage advocates who are part of the #FightFor15 movement, claiming that everyone should make enough money to live on, to opponents of a minimum wage who believe that minimum wages are counterproductive to both employees and businesses, in the sense that anyone whose work isn’t worth the minimum wage wouldn’t be hired, or that the business cannot afford the minimum wage and therefore, no one would have a wage at all, since the business cannot operate.
The latest proof that a minimum wage is counterproductive to a business is the case of McDonald’s replacing cashiers with kiosks.
As reported by CNBC, McDonald’s shares have hit an all-time high, having gone up 26% this year. This is largely due to the company’s announcement that cashiers will be replaced with kiosks in 2,500 restaurants this year, and there are plans for mobile-ordering technology to reach 14,000 U.S. locations by the end of 2017.
The reason for this technology transition, according to Forbes, is the push for a higher minimum wage. The call for $15 per hour as a starting wage “has negatively impacted the career prospects of employees who were just getting started in the workforce while extinguishing the businesses that employed them.”
According to Independent Journal Review, McDonald’s has been frequently targeted for the #FightFor15 movement, due to the company’s success and its high employment of younger people.
The example of McDonald’s is proof that in order to cut costs and not have to pay a wage that a prospective employee isn’t worth, why not replace these prospective workers with kiosks that don’t fight for raises, don’t take sick days, and don’t show up to work late?
This is a consequence of a leftist policy. The Left, in general, does not care if a policy actually works; they care much more if the policy they push makes them feel good. The results of the policy can be catastrophic over time, as we’ve seen time and time again, from the New Deal to the Great Society to Obamacare. Not to mention the nonstop government intervention in the free market, which generally yields a recipe for disaster.
The examples are endless, but at least the Left gets to successfully virtue signal once more.