My heart goes out to all those fast food workers protesting for higher wages, but I’m sad to have to watch them experience the harsh lesson in real-world economics that’s about to hit home. By taking to the streets and demanding $15 / hr. in wages, fast food workers are unintentionally making themselves economically obsolete. They are, in essence, guaranteeing their own unemployment.
Sadly, few of the protesters realize this. Nor will they realize why they are being fired when that day soon arrives. Entry-level fast food workers, after all, tend to have relatively little knowledge of how business really works, where money comes from, where money goes and why no private sector business can stay in business for very long if its operating costs exceed its income.
Fast food workers have a tough life. Getting by on anything less than $10 / hour is almost impossible these days. The relentless debasement of the U.S. currency by the Federal Reserve (the global banking cartel) has caused mass price inflation across the board, and that’s why food costs more, housing costs more, cars costs more and clothing costs more. Even pursuing an education costs way more than it should these days, too.
It’s no wonder fast food workers are desperate to fight for higher wages, but the raw truth of the situation is that a $15 / hour wage mandate would simply cause many fast food companies to close their doors and go out of business. There’s very little profit margin in the fast food industry, and businesses can’t simply raise their menu prices because “low cost food” is the primary reason why people buy fast food in the first place.
Amnesty will wipe out low-end jobs for most Americans
But the real kicker here is that President Obama is on the verge of legalizing about five million illegal immigrants via executive order. This is apparently supposed to happen after the election, at which point Obama will sign a piece of paper and announce citizenship for five million immigrants who are currently in the country illegally.
This creates five million new legal workers who won’t demand $15 / hour. These previously-illegal workers have been toiling away at maybe $6 an hour, and they’ll be thrilled to take on a legal job at $8 / hour in fast food, especially when they now get some employee benefits as part of the deal.
What we are about to witness is a massive wave of worker displacement where newly-legalized workers will sweep in and take all the low-paying jobs currently held by the very same American fast food workers who currently believe they can protest in the streets and command $15 / hour.
Ain’t gonna happen, folks. Because even if these workers do manage to convince local politicians to pass $15 / hour wage rules, all this does is accelerate the fast food industry’s transition to automated robot workers.
Robotics will also replace low-end workers
Here’s a robot that can prepare 360 hamburgers per hour all by itself. Notably, this hamburger-prepping robot:
• Don’t belong to any unions
• Doesn’t complain about working overtime
• Never smokes weed during its break
• Doesn’t spit in the customer’s food
• Doesn’t sue its employer for on-the-job injuries
• Never protests for higher wages
• Doesn’t need time off for vacations
• Never steals food from the company
• Doesn’t sexually harass the female workers
As a result, from the point of view of the fast food industry, a robot is the perfect worker.
Fast food companies to replace human workers with robot workers
“Our device isn’t meant to make employees more efficient,” said Alexandros Vardakostas, co-founder of the robot manufacturer in the Xconomy.com article linked above. “It’s meant to completely obviate them.”
Workers’ push for $15 / hour in wages only accelerates the industry’s rush to robotics automation. Even if this robot costs $100,000, the return on investment for the corporation is less than three years.
The way out of all this for fast food workers is not to demand higher wages but to pursue a higher education and improved job skills so that their job contributions rise above the capabilities of a robot.
Sources for this story include: