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Minimum Wage Push by Democrats Gains Support…of Robots and Overseas Call Centers
Dignitas News Service ^ | May 21, 2014 | Paul M Winters

Posted on 05/21/2014 12:32:05 PM PDT by dignitasnews

Minimum Wage

You may not realize it, but the next time you run through your local fast food drive-thru, that sweet and helpful voice on the other end may not be coming from the register, but half-way around the world, and if left-wing activists have their way, it may become an industry standard. Democrats frustrated by the lack of enthusiasm for their election-year push to increase the federal minimum wage need only look to outsource destinations such as India, the Philippines and elsewhere to find vocal support, as well as the reasons for apprehension among American voters for their signature policy initiative.

As the Democratic Party works on a $10.10 federal minimum wage in the halls of Congress, and rabid leftists activist colluded with local officials for even greater hikes in cities across the nation, economists warn that these feel-good policies place an already sluggish recovery in jeopardy and could serve to increase the number of lower-wage US jobs replaced by overseas workers or done away with altogether via automation.

Senate Majority Leader Harry Reid (D-NV) relied on his typical rhetorical obsession to describe a recent move by Republicans to block Democrat attempts to pass the "Minimum Wage Fairness Act" which would increase the nations minimum wage from its current $7.25 per hour rate, bringing it incrementally to $10.10 within two years. "The will of the Koch brothers seems to be the top priority for my Republican colleagues,” Reid complained. “They said they’re going to score this vote. It means if you vote 'yes,' you’re not going to get the help of Charlie and Dave.”

GOP leaders in the Senate, however, point to a recent Congressional Budget Office (CBO) assessment that predicts such a move will result in a loss of 500,000 to as many as 1 million US jobs. “Voting for an increase for the minimum wage is saying your jobs don’t matter to me because they will get taken away,” remarked Republican Senator Ted Cruz of Texas, “This bill, if it were to pass, would hammer those at the bottom of the economic ladder and cost them their jobs.”

While the election-year rhetoric of Democrats is designed to highlight the positive aspect of increased wages for low-skilled workers, even many of liberal economist acknowledge privately that such moves do have negative economic consequences. A study conducted by University of California, Irvine surveyed 100 different studies on the subject, and found that full two-thirds of economists concluded that increased national minimum wage rates would cost the United States significant number of jobs, as well as increased prices while decreasing overall quality of products and services.

These fears have been increased with the advent of improved technology that is enabling industries that traditionally higher low-wage workers, such as fast food, to more easily outsource certain job functions to overseas call centers, or eliminate these jobs altogether through automation. McDonald's unveiled its latest technological marvel, an ATM-like ordering system in which customers choose their selections on a touch screen and pay with a debit or credit card. The company announced it will be installing 7,000 of these machines throughout Europe, in an attempt to combat increased labor costs as a result of recent minimum-wage hikes.

Panera Bread also announced it has begun to implement robot-kiosks to eventually replace all its human cashiers by 2016. The move particularly highlights the hypocrisy behind the minimum wage movement, as Panera CEO Ron Shaich has been a vocal supporter of President Obama and increased minimum wage laws. Shaich is shrewdly playing on the emotions of Democrat sentiments, while quietly positioning the company to be in a position to crush lesser-prepared competitors, who will be forced to pay their employees the new rates, while Panera simply lays off much of their human staff, replacing their functions with robots.

minimum wage "Would you like fries with your order?"

Fast food companies have also begun to prepare for potential federal wage mandates by increasing their stake in the global outsourcing market. While some chains have already been utilizing overseas call centers for back office and accounting work, technology exists to create a seamless process flow in which drive-thru customers placing their orders will have these requests handles by an off-premise workers, who will log the information into a computer which notifies the kitchen and cashier (human or otherwise), all the while able to communicate to a customer unaware this individual isn't physically at the location.

Stateside, businesses have to be wary of their reputation with a public generally soured on the notion of overseas outsourcing. To combat this, they will often field test a process change, utilizing outsourced workers and centers in the United States, where they can better develop their process flow before shipping these functions off.

While the innovations cited appear to be inevitable, it is undeniable the impetus for their creation come from repeated efforts by left-wing politicians and activists to hit businesses with punitive actions, under the guise of helping out lower-income workers. They have been celebrating their "victory" of pushing the City Council of Seattle to implement a $15 minimum wage, or "living wage" as they refer to it. In their self-righteous zeal, however, they of course fail to acknowledge the reality that these actions will not only result in job losses for lower-skilled workers, but will affect consumer prices as well.

minimum wage "Welcome to Burger World, how may I help you?"

The problem is only exacerbated as federally mandated wages are pushed higher and higher. Obviously an increase to $10.10 an hour pushes all those below that level to a higher wage (or the unemployment office), but then has a ripple effect throughout the labor market. The worker today that is earning, say $10.50 per hour will rightfully complain that he or she secured this wage through hard work and an improvement of their job skills, and thus deserves a higher rate, commensurate with their value, given that someone just entering the job market with no skills is now making nearly the same as they. This continues up the ladder to the point where wage adjustments either cause massive job cuts or quicken the pace of inflation to compensate for drastic increases in production costs. The end result will likely be that the buying power of the "living wage" is ultimately lower at $10.10 per hour than it was at $7.25.

For the "Barista-house Bolshevik" however, this is of little concern, as they view things from a very narrow lens. The only true winners of a push to increase minimum wage laws so desired by Democrats are either robotics companies or call centers in India, the Philippines, Nicaragua and elsewhere. The question that remains for us to investigate, however, is it that the left-wing is unaware that their activism will result in higher costs, prices and an increase of unemployed workers who will be forced to seek sustenance through government-run social welfare programs, or the truly frightening reality that they know exactly what they are doing.

By Paul M Winters

 

Sources:

UniversityofCaliforniaIrvine CBSNews DailyCaller TheHill Business2Community CaliforniaWorkersCompensationDefemse KOATTV7 YouTube


TOPICS: Business/Economy; Government; Politics
KEYWORDS: automatedordering; democrats; minimumwage; outsourcing
Are Democrats unaware that such policies increase unemployment and drive more workers into bureaucratic dependence or do they know exactly what they are doing?minimum wage, democrats, mcdonalds, automated ordering, outsourcing
1 posted on 05/21/2014 12:32:06 PM PDT by dignitasnews
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To: dignitasnews
They know exactly what they are doing. Their ultimate goal involves work camps and ovens.
2 posted on 05/21/2014 12:36:10 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: E. Pluribus Unum

Isn’t Government control of a minimum wage, a form of Government Wage Control?

If that is true, then is Government Wage Control a form of Private Business Control?

Since few in Government have ever worked for a wage in a Private Business, are we not allowing the ignorant and incompetent in Government to control Private Businesses?

Consider the fact that Private Businesses employ the vast majority of Americans, and we have a situation where we vote in the incompetent Government politicians to control how most of us make a living.

It is time, - - - time for a change in 2014.


3 posted on 05/21/2014 12:52:04 PM PDT by Graewoulf (Democrats' Obamacare Socialist Health Insur. Tax violates U.S. Constitution AND Anti-Trust Law.)
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To: Graewoulf
Two big Lefty politicians, George McGovern and David Bonior, went into private business after leaving office and completely repented of their sins.

George McGovern, Small Business Owner

Ex-lawmaker David Bonior gets firsthand biz perspective

4 posted on 05/21/2014 12:55:31 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: dignitasnews
You may not realize it, but the next time you run through your local fast food drive-thru, that sweet and helpful voice on the other end....

That might be an improvement, the "sweet helpful voice" usually starts with a brusk "YO ORDUH!" (and after getting the order wrong)ends with an even more brusk "PULL FOWAD!"

5 posted on 05/21/2014 1:06:26 PM PDT by apillar
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To: dignitasnews

of course they are aware. They don’t care. Higher minimum wages means unions, and that means a chunk of that higher wage will go to mandatory union dues.

Union dues are used to elect Democrats.

For Democrats, it’s never about the people, it’s about how people can be used as stepping stones to keep themselves in power and kobe beef.


6 posted on 05/21/2014 2:18:58 PM PDT by blueplum
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