The minimum wage, sitting at $7.25 on the federal level and up to $13 in states like Washington and California, has been a hot topic on political agendas recently. As early as 2016, most Americans supported a $15 federal minimum wage.
The idea of a high minimum wage makes sense. Like all policies, some will benefit while others pay. Like most palatable policies, the middle and lower class workers should benefit from higher wages while large corporations might lose some profits.
But beyond the Walmart cashier or Amazon warehouse worker who sees a pay bump when the minimum wage is raised, we should examine who else benefits: Big Tech. Or, more aptly, Big Automation.
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Regardless of any minimum wage law, one fact remains: automation is cheaper than labor. The consequences are seen everywhere. Call center jobs are replaced by automated chatbots, grocery self-checkout is growing, and Uber is pouring money into autonomous vehicle research so it can one day turn a profit. At Creator, San Francisco’s most innovative burger joint, you can order an entirely robot-made burger.
Minimum wage laws further promote this incentive. Following minimum wage hikes in California, Massachusetts, and Alaska, Wendy’s installed self-serve kiosks in 1,000 of its restaurants. Other restaurants like McDonald’s and Panera are following suit. ADP sees inevitable minimum wage increases as a wake-up call for businesses to “accommodate the automation revolution or face extinction.”
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