As the new year begins, liberals are celebrating the fact that many cities across the nation will implement higher minimum wages.
Fortune magazine reported that in 2018, 18 states and 20 cities are raising their minimum wage.
That may sound great to liberals, but to those with a basic understanding of economics, forcing companies to pay employees more is bad news.
As usual, liberals are not thinking the minimum wage hike through to its logical conclusion because, if they did, they would realize what a catastrophe it is.
For example, many studies have explored the negative impacts of higher minimum wages.
Data from the American Action Forum revealed that minimum wage increases in 2017 cost 383,000 jobs.
To deal with higher labor costs, employers only have a few choices. They can decrease production expenses, which would result in financial loss. They can raise prices to offset the cost of paying higher wages, which could result in more financial loss, and this hurts consumers.
Businesses can also cut jobs, which results in higher unemployment.
Another more cost-effective solution is going the way of automation and simply replacing employees with machines.
Wendy’s, for example, has installed self-serve ordering kiosks at hundreds of locations to help reduce labor costs.
Carl’s Jr. CEO Andy Puzder told Business Insider that trying automation as a way to deal with rising minimum wages was a no-brainer.
“If you’re making labor more expensive, and automation less expensive — this is not rocket science,” he said.
“They’re always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall, or an age, sex, or race discrimination case,” Puzder said of the machines.
Other businesses are catching on to the benefits of automation.
Those who find themselves unemployed or replaced by a machine have liberals to thank for it.
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H/T Zero Hedge