Thursday, January 30, 2014

Minimum Wage Stimulates Automation


From the article:

Microsoft co-founder Bill Gates made the connection in a recent interview on MSNBC. Asked if he supported a higher minimum wage, Mr. Gates urged caution and said the policy would create an incentive for employers to "buy machines and automate things."

Mr. Gates is right, but the transition toward self-service began long before tabletop computers were a viable option. Self-service soda machines, available at fast-food restaurants since at least the late 1970s, were a labor-saving device. Even coffee carafes left on the table for customers to serve themselves allowed restaurants to reduce the staff needed to fill cups. More recently, major restaurant chains such as Bob Evans and Chili's have updated their service model to eliminate bus boys, relying on servers to clear tables themselves.

Source: Michael Saltsman, "The Employee of the Month Has a Battery," The Wall Street Journal, January 29, 2014

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