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There is an "App" to replace me

There is an “App” to replace me

In September 2014 I wrote a blog about the push for a $15 per hour minimum wage. I cautioned that it was a very bad idea and described what would happen if it were to be implemented.  You can read about that by clicking here.  As it turns out the push has continued and the fast food industry has reacted well before the rate has reached $15.  Click here to read what a former CEO of McDonalds has to say about this in a recent article.

My prediction of what would happen is coming true and instead of helping those who work in minimum wage jobs or at entry-level jobs near minimum wage it will hurt. There will be fewer entry-level jobs.  Please don’t hail me as an economic genius; this is really simple to anyone who has any business sense.  The technology has been available for a long time and now that labor is becoming more expensive a switch to automation becomes more viable.

At the beginning of June, Chick-Fil-A launched their mobile ordering app similar to the wildly popular Starbucks app. This switch to automation was inevitable and the ruckus that the $15 per hour movement caused simply accelerated the move to machines.  I applaud the move to more technology only because it is a more efficient way to “deliver the goods”.  My wife and I use the app that Panera Bread has to order food and pick it up when we are ready.  It is a fantastic way to avoid the lines and save time. I am worried about where all the low skilled workers, students and people looking for part-time work to augment their income are going to find employment.

Have a great week.

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Written by pacelinebiz

July 10, 2016 at 8:01 am

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