You may want to dust-off your resume and search elsewhere if you work at or were considering working at McDonald’s.
The company has announced that it is installing digital kiosks starting this year. 2,500 restaurants will have them by the end of 2017, and another 3,000 will have them at the end of the following year.
Even if this affects only one cashier per store, this is a total of at least 5,500 cashiers lost by the end of 2018.
It all comes down to math, the economics, as Zero Hedge explains. This is for two reasons.
Yes, it does cost less to “pay” a machine than an actual human being. Employees are a cost, even if not many people want to admit that.
You, as an employer, want to take on the costs of someone that helps produce a profit for you. In the likes of retail and food services, a mandatory $15 minimum wage is unfortunately too great of a cost for these corporations with minor margins.
Because minimum wage is state law and federal law, a company cannot reduce their costs to maintain a profit by paying the employees less. They have to reduce their hours and/or let many of them go. It’s just the nature of economics.
These companies are not withholding profits from their employees, either. That’s not a substantial argument because you’ve likely seen at least one major store in your area close, and retailers are bankrupting.
Into unemployment and the not-in-the-labor-force category they go.
Not in the labor force is my favorite statistic because it shows that conservatives understand economics while simultaneously fueling my antinatalism.
People not in the labor force are those who are beyond unemployed. Simply, they chose to not look for work anymore. There are more than 95 million such people out of more than 320 million in the United States, and not all of them are students or senior citizens. I have more to speak on this for another time.
I would say that if you believe that employers generate the sort of profit to hire these 93 million people plus the more than 16 million who are unofficially unemployed, you have to look into the economics quite a bit more. You can subject any potential offspring to such odds if you must. I won’t.