Machines
Written by: Grant Basile
Imagine a world where all forms of human communication was replaced with automated messages. That pesky “press one if you want…, press two for... “ is the everyday form of communication. For most, the idea that simple interactions are replaced with computers is very unsettling. But, yet this is exactly what former McDonald’s CEO Ed Rensi is saying, “it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee whose inefficient making $15 an hour bagging french fries,(The Guardian).” Mr. Rensi is speaking of the risks to raising minimum wage, although it seems like it would be helping, it could in fact lead to a snowball effect leading to higher rates of unemployment, inflation, and lastly a massive change in today’s workforce.
Although the unemployment rate has fell by as much as 4 percent over the last 7 years, this is likely to change if the talk of robots stealing jobs in the fast food industry continues to occur. Although this is simply just talk right now, in some countries such as India, this has become a reality.
Another problem that Mr. Rensi presented was the effects this would have on the value of a dollar. If businesses are required to pay their workers a minimum of $15 dollars, then more skilled workers wage rates would adjust to scale. This would could reverse all positive trends the economy has.
Lastly, a problem not discussed in the article, is structural unemployment. If minimum wage is raised, and wage rates are adjusted accordingly, many companies will be forced to release some employees, causing many highly skilled people to be unemployed. The jobs available will not utilize the skills they have.
Works Cited
Kasperkevic, Jana. “Ex-McDonald's CEO Suggests Replacing Employees with Robots amid Protests.” The Guardian, Guardian News and Media, 25 May 2016,
“McDonalds Responds To Minimum Wage Hikes, Launches McCafe Coffee Kiosk” Zero Hedge, Tyler Durden, 06 April 2016
"United States Unemployment Rate, 1948-2017, " United States Unemployment Rate, 14Feb. 2017.
0 Response to "Machines"
Post a Comment