
If you want to solve structural problems you need structural solutions, and raising the minimum wage is not a structural solution.
In case you missed it, I outlined my thoughts on the matter in the post: The Pitchforks are Coming…– A Dire Warning from a Member of the 0.01%.
Equally important, the entire argument of raising the minimum wage cannot be had without discussing the impact of technology. As I and many others have highlighted over the past several years, one of the most troubled segments of the U.S. economy consists of fast food workers. They simply cannot survive on the wages being paid to them by employers and need food stamps, disability and second jobs merely to make ends meet. In theory, raising the minimum wage will help these folks the most, but will it really? I think not.
The main reason is that if employers are forced to pay these employee more, the employers in this industry are likely to move as quickly as possibly to fast-food preparing robots. This isn’t just some pie in the sky fantasy either, there’s a company called Momentum Machines that has already assembled a product that can make a burger in 10 seconds, or 360 burgers per hour. Raw Story recently reported on this and here is what they said:
A robot that can make 360 burgers an hour could put many fast-food workers out of a job – exactly as its designers intended.The folks at Momentum Machines are very serious about their undertaking and boast an impressive pedigree. Its website boasts that:
Silicon Valley-based Momentum Machines developed the device, which is more like an assembly line than a humanoid robot, reported Singularity Hub.
“Our device isn’t meant to make employees more efficient,” said Momentum co-founder Alexandros Vardakostas. “It’s meant to completely obviate them.”
The company says the burger-flipping robot could take the place of two or three line cooks and save restaurant owners about $90,000 a year in salary and benefits.
The robots also reduce liability, management duties, and the space needed to prepare food, the website reported.
Some restaurant owners could use those savings to improve the quality of ingredients – basically offering gourmet burgers at fast-food prices – but others could offer the same quality food at lower prices.
Oxford University researchers predicted in a recent study that 47 percent of U.S. jobs were at risk of being automated within 20 years – especially service occupations, where most recent job growth has occurred.
Our team was trained in mechanical engineering, control systems, and physics at top tier institutions: Berkeley, Stanford, UCSB, and USC. We draw from work experience that includes cutting edge firms such as: Tesla, NASA, Semiconductor Technology Associates, etc. Our investors are tier one venture firms and we are advised by the best in the restaurant industry.Moreover, if Oxford University is correct, up to half of U.S. jobs could be threatened by automation. Raising the minimum wage doesn’t do any good if it causes your job to disappear faster.
As I have written for years, we need radical structural change to address the real root problems in America. These problems including central banking and the Federal Reserve‘s unaccountable power, TBTF banks, corporate interests running Washington D.C., a disappearance of the rule of the law, the surveillance state and out of control intelligence agencies, the militarization of the domestic police force, corruption, and an overly aggressive foreign policy.
Calling for an increase in the minimum wage sounds good, but it is a superficial and ultimately meaningless solution. If we want to be serious about change, we need to seriously and radically address the issues listed above.
In Liberty,
Michael Krieger
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