The math on this will be inescapable. Fast food, and Fancy Coffee, have a bit of price elasticity. They are not necessities.
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Artificially pushing wages above where the market will sustain them will accelerate those kind of productivity improvements and worker replacements.
I am in no way demeaning the role, or the work done by a barista, or a burger flipper, but adding too much to the price of those products will cause a fall in sales.
I think maybe your misunderstanding @Astro14 post. Maybe better said, this is the way I read his post.Who's artificially pushing wages up? The unions didn't, they're reacting to rising wages across the board because companies are paying more just to fill entry level jobs. That part was organic. As far as screen replacing people, that's probably not what's going on here. They raised pay because people weren't working there. I'm sure there are very few cases where people have been let go because screens were added. They can't seem to hire the people needed to do it without adding technology.
(no politics) just factual data. The Federal Min Wage is $7.25 an hour.
It is individual state governments pushing the min wage into the $15 and $20 range. I take that as artificially.
They are not raising pay because people wont work there in most all cases. Granted with the cat out of the bag now and with state governments pushing the wages so high, even in state without sky high min wage it becomes a problem with closing the disparity.
Fast food workers in CA will be getting a min wage of $20 an hour in April. This puts pressure on other places across the board.
I personally know small business owners on the other coast in NYC it's KILLING small mom and pop businesses with a min wage of $15 an hour.
The screwy thing about all this is, it kills the small business and makes the mega corporations more powerful then ever. We already know there will be no more small business. So depending on the wording of Astro14 Im not sure and I do see your point too.
Without unions in the coming decade corporations would be controlling the entire labor market because crazy high laws raising the min wage will put all the small competition out of business. I do think, the more I type this, unions will play even a more important roll.
The more regulations their are, the more powerful large companies get because the small companies do not have the means to meet the new regulations.