When government uses force, people and companies adapt
No one likes to be a punching bag. If government says a company must pay someone $15/hr no matter what, companies adjust. First, they will let go the employees that are not productive enough or skilled enough to earn the $15/hr.
Wendy’s Adding Self-Service Ordering Kiosks:
Companies will also consolidate tasks. For example, if someone was being paid $8/hr to sweep the floor, that person will be fired and (A) either the floor won’t be swept at all, or (B) someone else will just add that job to their list of responsibilities.
Companies will not pay $15/hr for an $8/hr task just because the government tells them to. Government can go pound sand.
This hurts all the individuals that can’t earn $15/hr at the moment. Now their chances of getting hired to do anything dwindle to zero. They must go fill out their unemployment forms instead of working.
If government forces companies to unjustifiably pay $15/hr for employees, the incentive to automate skyrockets.
Wendy’s is yet another example of a company that is moving to automation. They are putting self-serve kiosks in all 6,000 of their restaurants by the end of this year.
Blowback is not reserved for government’s insane foreign policy. It also occurs with boneheaded domestic interventions as well.
Employees who were earning their market rate will now be laid off and will earn nothing.
They can thank government “help”. source
Original Article:http://www.nowtheendbegins.com/15-per-never-fast-wendys-food-companies-answer-back-by-rolling-out-self-serve-kiosks/
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