McDonalds’ Workers Replaced by These Machines, Thanks to Minimum Wage Increase: Nice Job Dems..

[dropcap type=”3″]T[/dropcap]here’s a war on out on Main Street USA. Labor unions want you to think it’s the 30s all over again and McDonalds and Jack in the Box are the auto industry and the coal mines. The fight is over the minimum wage, and the unions are calling for a “living wage.”

“The Fight for Fifteen” is their rally cry. They want the minimum wage raised to $15 per hour so, in theory, a minimum wage worker can support a family. Tugs at your heart strings doesn’t it?

The problem for minimum wage workers is that their knights in shining armor, the union leaders who will be collecting dues from them and the Democrats who will expect them to vote for Democrats, are ignorant about basic economics.

First of all, “minimum wage jobs” are designed as an entry point into the workforce. A job where an unskilled young person can learn the basic skills of holding a job. They are not designed to be permanent positions. They’re designed for workers with little to no skill who require training and supervision and who will gain some skill at the job and some elsewhere and move up to a better job.

Second, when you demand to be paid more than you are worth, bad things happen to you. Your jobs disappear. Minimim wage workers in Seattle and San Francisco are discovering that as their companies either close their doors or reduce staff.

And then there’s the third thing that happens, it’s called automation. Check out McDonalds new minimum wage order taker.

By the way, the people who were saying “Want fries with that?” last week are sleeping in this week. They also made a startling discovery, their new minimum wage is now zero.

Service jobs are fairly easy to automate. Remember when you had to go to a teller during banking hours to make a deposit or take out some cash? If banks can replace tellers who handle large sums of money, fast food restaurants will be lining up to install automated ordering screens, automatic fryers, and machines that will build a custom burger.

Those touch screens don’t need much in the way of time off, they don’t have legally mandated health care, and they don’t whine.

Dear GOP Candidates: It is bad optics when you've Duggar self into a hole.
Weekend Caption Contest™ Winners May 29, 2015
  • Par4Course

    The minimum wage causes outsourcing and automation, among other ills. Either wages can be set by market forces or by government. Any government-set wage is, by definition, arbitrary. GOP Presidential candidate Rick Santorum is trying to make himself more likable to Dems by calling for an increase in the minimum wage. Good luck with that, Rick.

  • Obamaroid_Ointment

    I’ve got a good idea, let’s import millions more Mexicans to do the jobs Americans &/or machines won’t do for <$15/hr.

    • jim_m

      The only reason for increasing illegl immigration is to increase dem voters. Recent polls show that the dems strongly favor letting anyone who is present inside the country at the time of an election to cast a ballot. They have no concept of citizenship and no understanding that this would allow our enemies to dictate the outcome of our elections.


    Perhaps people can read the recent book, “What Does the Minimum Wage Do?” by Dale Belman and Paul J. Wolfson. It won the winner of the 2014 William G. Bowen Award.

    Belman and Wolfson have compiled the most comprehensive, analytical, and unbiased assessment of the effects of minimum wage increases that has ever been produced. Based on a rigorous meta-analysis of more than 200 scholarly publications published since 1991 (most after 2000) that address the various impacts of raising the minimum wage, the authors observe several outcomes influenced by increases in the minimum wage, how long it takes those outcomes to respond, the magnitude of effects, why increases in the minimum wage have the results they do, and the workers most likely to be impacted.

    One of the results? Despite continued dire warnings, it does not affect employment rates.

    • Right. So my son SHOULD be able to find a minimum wage job.

      Maybe I should tell him to fake up a Spanish accent and work for pay under the table.

  • Larry Brown

    The problem with saying fast food is an “entry” level job is that, any more, it’s not. Without any training or advanced degrees where are they to go?
    No, I’m not advocating a higher minimum wage. I don’t have an answer. And sadly, I don’t think anyone else does either.
    Welcome to our new overlords…I Robot!

    • jim_m

      Well, heck, since you need a BA in Art History to be a Starbicks baristaI suppose that even a job at McD’s is going to demand more form its labor pool.

  • Paul Hooson

    McDonald’s business model was always built on selling franchises as a real estate business model, where only hamburgers was a product to sell compared to “widgets”. In an effort to increase profits, regardless of a higher minimum wage, more automation or cost-cutting seemed likely at any point that technology was available…

    • Commander_Chico

      Right. What’s the cost per automated sales point amortized over a three-year span, or a subscription/lease cost vs. the wages and employer paid FICA of a worker?

      Wages would have to be $2 an hour to make McDonald’s happy.

      • jim_m

        Equipment will be depreciated over a 5 to seven year timeline. But the equipment is likely to last ten years or more. The issue is that it hasn’t happened because the upfront costs have been too high. Now with labor puching for higherr wages, the upfront costs are less important than is the protection against work stoppages.

        The labor unrest simply comes at a convenient time when the technology is righht and society’s willingness to accept a transaction without human contact is rapidly increasing.

        And with electronic sales kiosks, wages will be zero. THAT will make any employer happy.

        • Commander_Chico

          Yeah I looked up some of the models, Ziosk is one. Looks like little up front costs.

          • jim_m

            Capital equipment can be brought in under many different finanial models depending upon the needs of the buyer. Any company worth its salt can deliver their equipment at zero upfront cost. You spread your costs out across the term of the deal and you play with operating costs until the deal makes sense in terms of margin.

      • Paul Hooson

        During the 1972 presidential election, there was one report that McDonald’s Corporation made a $1 million dollar donation to the Nixon Campaign in exchange for Nixon nixing any efforts to increase the minimum wage. If the report is true as stated, Nixon was selling favors in exchange for donations to his campaign in addition to his Watergate crimes. Johnson was also said to be involved in much less than honest activity by his opponent Barry Goldwater who claimed that people looking for favors used to be lined up outside his office while he was senator and vice president.

  • GarandFan

    I found it funny as hell that unions in LA are asking that they be exempt from the new minimum wage laws.

  • pooteeweet

    Well actually the laws of economics 101 have already kicked in as McDonalds announced they will be opening their first fully robotic run restaurant in Phoenix AZ July the 4th 2015, and based on its success 25,000 more will be converted in 2016. The new minimum wage for McDonalds is zero. Sorry folks, the laws of economics are sometimes devastating. Fast food workers will soon be a relic of the past.

    • harlan

      You do know that Robotic Phoenix McDonalds was a spoof in the Examiner right? Check out then go feel silly for believing what you read and posting your comment

  • Matt

    Automation is the new reality we are living in. Like it or not, if we want our $2.50 combo meal, McDonald’s is going to have to automate or it will go under.