Acton Institute Powerblog

Why we should oppose both Skynet and minimum wage increases

Share this article:
Join the Discussion:
Terminator-2-Judgement-Day-poster
Terminator 2: Judgment Day poster / TriStar Pictures

I oppose implementing Skynet and increasing minimum wage laws for the same reason: to forestall the robots.

It’s probably inevitable that a T-1000 will return from the future to terminate John Connor. But there is still something we can do to prevent (at least for a time) a TIOS from eliminating the cashier at your local fast food restaurant.

For example, Wendy’s is adding customer service machines to at least 1,000 restaurants, or about 15 percent of its stores, by the end of the year.

In Europe, McDonalds ordered 7,000 TIOSs (Touch Interface Ordering Systems) to take food orders and payment. In America, Panera Bread is moving to replace all of their cashiers with wage-free robots in all of their 1,800 nationwide locations. There is even a burger-making robot that can churn out 360 gourmet hamburgers per hour.

As Andy Puzder, the head of Hardee’s and Carls Jr.’s parent company and briefly US president Donald Trump’s nominee for secretary of labor, said in a 2016 interview, “With government driving up the cost of labor, it’s driving down the number of jobs. You’re going to see automation not just in airports and grocery stores, but in restaurants.”

“This is the problem with Bernie Sanders, and Hillary Clinton, and progressives who push very hard to raise the minimum wage,” added Puzder. “Does it really help if Sally makes $3 more an hour if Suzie has no job?”

I, for one, welcome our new fast-food robot overlords. I’m just not ready for them yet. And neither are millions of American workers.

Over the long run, the adoption of technological innovations tends to increase prosperity and economic flourishing. For example, we are all much better off because of 19th century workers who lost their farm jobs. Likewise, we’ll also be better off (again, in the long run) because a HAL 9000 is flipping our burgers and freeing up the human Hals and Hallies of the world for more productive labor. But in the short-run, the use of robot replacements for low wage employees will hurt the poorest, most low-skilled workers.

The main advantage such workers have now is that they are cost efficient. Fast-food businesses are currently willing to hire low-skilled workers and serve as remedial-training vocational schools because it’s in their economic self-interest to do so. But raising the minimum wage takes away that incentive and will motivate businesses to replace those workers with automated machines.

It’s certainly the rational choice. If you were the owner of a fast-food restaurant, would you rather be staffed by efficient, reliable robots or low-skilled workers (e.g., teenagers, ESL-adults) who tend to have higher than normal human problems? As Puzder said, “[Robots are] always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall, or an age, sex, or race discrimination case.” If it suddenly becomes cheaper to buy robots than pay a premium for human labor, what do you think businesses will choose?

We already have the answer — you can find it at your local gas station. If you’re younger than 40 you aren’t likely to remember full-service filling stations (unless you live in Oregon or New Jersey where self-service if forbidden by law). Yet they were once the norm.

In 1950, there were over 81,000 gas stations and only about 200 self-service stations (almost all in California). It wasn’t until the two gas shortages in the 1970s (1973 and 1979) caused higher fuel prices which led consumers to look for pricing relief. Almost overnight, full-service stations became all but extinct — taking an entire sector of low-skilled jobs with it.

The recent move in California and New York to rapidly increase the minimum wage to $15 over the next several years will have the same effect. A small group of employees will see their pay increase while many more will find their jobs disappearing completely, never to come back. Keeping the minimum wage at it’s current rate (or, better yet, eliminating wage floors completely) won’t prevent the robots from taking those jobs in the long run. As even the Obama administration’s own internal team of economists admitted, low-paying have an 83 percent chance of being automated. But letting the free market determine the price of labor would allow for a smoother transition and give low-skilled workers time to adjust.

Sometimes what initially appears to be a noble and humane idea has unforeseen and dramatic consequences. Proponents of minimum wage increases have (mostly) good intentions. But so did Dr. Miles Bennett Dyson and the engineers at Cyberdyne Systems. And we know how that turned out.

Work: The Meaning of Your Life

Work: The Meaning of Your Life

Where do we find the core of life's meaning?  Right on the job!  At whatever work we do -- with head or hand, from kitchen to executive suite, from your house to the White House. New Foreword by Stephen J. Grabill and Afterword by Greg Forster

Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

p

Comments