- Aug 4, 2009
- 281,428
- 142,857
- 2,615
A lot of cities are establishing their own "living wage" hourly rates around the $15 level. LA recently bumped it up to $18. Even here in Austin, fast food chains can't get or keep workers unless they pay around $12.
Many fast food restaurants, retail stores and small contractors are beginning to see their profits being squeezed at this level and are having problems passing this extra cost along to their customers. If they raise their prices, they lose business.
We are getting close to a tipping point where a lot of these companies will choose to automate functions currently performed by restaurant workers and sales clerks. It's already begun to happen in many cities on the East & West coast. If the wage rate for employees reaches $20, companies will either automate or fold up. Contractors and builders can't automate, but they will survive by hiring people off the books (illegals).
Each year our dysfunctional education system graduates hordes of kids from high school that are barely literate. Who is going to take care of these people if they can't find jobs and have no skills -the Federal government?
We are getting robots today even though we have a $7.25 minimum wage
If they can replace you with automation, they will do it regardless of the wage
They put in self serve gas pumps even though the minimum wage was $2.85