American Elephants


Raise the Minimum Wage, But Beware Unintended Consequences! by The Elephant's Child

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McDonalds has added 62.000 employees in the United States. My guess would be that to be their response to ObamaCare, cutting back workers to 30 hours a week or less to conform to the mandate to pay for health insurance for all full-time workers. If everybody gets their hours cut in half, you need twice as many workers.

In Europe, McDonalds is drafting instead, 7,000 touch-screen kiosks to replace cashiers. The touch screens will accept only debit or credit cards, helping to spell an end to cash and coins. The move is intended to boost efficiency and make ordering more convenient for customers. McDonald’s Europe President Steve Easterbrook notes that the new system will open up a goldmine of data. They could potentially track every Big Mac, McNugget and shake in your order. What that information tells them, I’m not sure. A follow up with a mandatory diet program?

People who are sure that we need to raise the minimum wage to $15 an hour or more, need to be aware that there are consequences. Momentum Machines automates the whole process, and there is a point where a machine that doesn’t demand sick leave and always shows up for work on time is cheaper than paying an undependable person.

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