Wednesday, May 25, 2016

McDonald's former CEO says humans to be replaced by robots

Link:

Former McDonald’s President Ed Rensi warned Tuesday that replacing workers with robots is far less costly than hiring new employees at $15 an hour.

Democratic lawmakers and advocates from across the country have fought to raise the minimum wage to $15 an hour. Those in support believe the policy could help address poverty, but critics say it could also lead to less employment opportunities. Rensi noted it will be cheaper for many businesses to purchase a $35,000 robot instead of hiring a new employee at $15 an hour.

“If you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries,” Rensi told Fox Business. “It’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe.”

This is exactly what many including me have been predicting. If you are paid $15/hr but produce only $7.50/hr in value the owner of the business is losing money. Businesses exist to provide goods and services at a profit. If a business can do what it needs to do with no humans believe me they will do it. If you are a business owner or manager who wants to deal with this crap? Not me bring on the robots.



Here is a tip for these dim bulbs. The reason fast food jobs pay minimum wage is because they require little to no skill and anyone can do it. The pool of available labor for these jobs is large so the cost goes down. If these stoops want to protest something that depresses wages they should protest immigration into the US both legal and illegal which increases the labor supply and pushes down wages for low skilled Americans. You should be careful what you wish for because you never knpow about unintended consequences.

After the automation of these fast food jobs and the disappearance of any low paying jobs I expect what we will see is a call by our "leaders" and the unemployed for a minimum guaranteed stipend. Don't say it will not happen. The Swiss are going to vote on this exact plan in June.

In early June the Swiss will be called upon to make a historic decision. Switzerland is the first country worldwide to put the idea of an Unconditional Basic Income to a vote and the outcome of this referendum will set a strong precedent and establish a landmark in the evolution of this debate.

The Swiss public will have to approve or reject a change in the constitution that would allow for the introduction of an Unconditional Basic Income (UBI), or a preset, monthly minimum income to be paid out by the government to every adult and child in the country if their income falls below a specific threshold. Even though details of this proposal have been few and far between, the most commonly cited amount of this guaranteed income would be 2,500 Swiss Francs for adults and 625 francs for children. The architects of the proposal stress that this government-guaranteed payment, unlike the current benefit programs, will be entirely “no questions asked”, i.e., it will not be means-tested and will apply to every person legally living in Switzerland.

Of course no thought is given to how this will be paid for except the same old "tax the rich" (however that is defined) bullshit the left always repeats. The proponents of this bill say that it is a defense against continued automation and rise of the robots. It will also supposedly give people more freedom to pursue the arts and self development. LOL! Yeah like if everyone wasn't working we would have an explosion in music, painting, and poetry. What it will create is a class of immoral, shiftless layabouts and a morally and economically bankrupt society. I guess the pot dealers and video game companies will do ok though.



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