Raising Minimum Wage Is Just Promoting Automation

If raising minimum wage really worked, then why not raise it to a hundred dollars an hour?

Happy Day, Hal. You’re hired! Touch-screen Number Five… you’re alive!

Via the Daily Signal:

The president only has to look at McDonald’s restaurants in France to see the impact a higher minimum wage would have. France’s minimum wage is $10.60 an hour. Not surprisingly, every McDonald’s has resorted to using touch screen ordering rather than workers. It simply doesn’t make sense, when minimum wage starts that high, to employ people when machines can do the job.

This is reality. When faced with high operating costs, corporations such as McDonald’s will find ways to cut costs, whether by substituting technology for labor or forgoing improvements and investments in the company’s future.

Companies substituting machines for employees is just one potential outcome of raising the minimum wage.

If companies choose not to eliminate employees, they’ll make up costs in a different way, often by passing the costs to consumers by charging higher prices. Ultimately, top businesses such as McDonald’s operate on thin margins that require efficiency and operational optimization that an artificial wage raise would undermine.

Ultimately passing a minimum wage hike would provide fewer, not more, opportunities to Americans. If Obama wants to see all Americans thrive, he should make sure they have as many opportunities to do so as possible—and stop promoting a minimum wage hike.

If you raise the “minimum wage” above the value of what a human worker can produce, you inevitably exacerbate unemployment, and increase opportunities for computers and technology.

The additional benefit: Businesses don’t have to navigate the tyranny and insanity of Obamacare on behalf of a computer.

Unlike government—which can seemingly rob taxpayers and print money without end—businesses actually have to pay their bills with real earnings. As James Sherk of the Heritage Foundation says in a similar context:

The true minimum wage remains $0.00 an hour. Businesses will not pay workers more than the value they produce. A $15 minimum wage forbids anyone whose labor produces less than that from working.

Here’s an idea: Since the vast majority in government couldn’t successfully run a lemonade stand in Florida (which would probably get shut down by tyrannical local authorities anyway), they should simply keep their noses out of the marketplace.

Nowhere in the Constitution are they given the right to do half the things they meddle with, and this is one of them.