Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Minimum Wage Hurts Whom It Claims to Help – Michael Munger

% of readers think this story is Fact. Add your two cents.


Not long ago, I flew into a small Ohio airport. Don’t ask why, sometimes Ohio just happens and you have to deal with it. Arriving late (having flown Delta: “Delayed Every Last Time Always”), I didn’t get in until after 11 pm. And I was worried about picking up my rental car, because all the car company desks were dark.

Then my phone vibrated; I had a notification on the Hertz app: “Slot B17, code 2946,” and some instructions. I went to a box, entered the code, and removed my key from the B17 door. My car was in parking spot B17, and I got in the car and drove off.

In 2011, Marc Andreesen famously said “Software Eats the World.” His claim was that the “problem is even worse than it looks because many workers in existing industries will be stranded on the wrong side of software-based disruption and may never be able to work in their fields again.” Well, my experience in Ohio made me wonder: have the folks who once worked at the Hertz counter found new jobs? Their experience was in public-facing retail, but those jobs are disappearing fast.

You’ve seen it in other industries. Once you walked up to the fast food counter and read some words from the menu board out loud. Giant burger, enormous fries, vat of drink, a combo meal. The person behind the counter then looked for the corresponding printed words on his cash register. Unsurprisingly, software ate this world. All you have to do is turn the cash register around. You can press those buttons yourself on a kiosk touch screen. You can enter the payment yourself, and get your own receipt, because software is recording, charging, and transmitting your order to more software on the back line of the restaurant.

At grocery store, self-checkout is now a replacement for a cashier. When I was growing up, the only place you could “check yourself out” was a mirror, but now some stores don’t have any cashiers at all except for handicapped customers who make a special request.

The coronavirus pandemic also contributed to the decline in service jobs, of course, so we can’t attribute all the employment loss to software. But overall, the number of people working service jobs, and the number of hours worked by those who have jobs, have fallen steadily since 2019.

The overall problem can be put in the form of an analogy, the kind you used to work on when you were studying for the SAT:

[software] is to [_________]

as

[robotics/automation] is to [manufacturing].

The correct answer to the “fill in the blank” is service jobs. In other words, where in the 1960s and 1970s we were all talking about automation causing “technological unemployment,” the new low-hanging fruit for job replacement is service jobs. Bizarrely, the solution of many current political analysts is that the solution is to raise the minimum wage, which disproportionately affects service work.

Let’s think about that logic for a second.

Minimum Wage

Service jobs are falling because software is replacing human workers at an extraordinary rate. We all see it in some areas — groceries, rental cars, fast food, movie tickets, and so on — but it is also happening in other areas that we don’t see — accounting, information requests, scheduling, reservations, almost any service that can be routinized. What will happen if we try to fix this problem of disappearing jobs with an increase in the minimum wage?

You don’t have to have a PhD in economics to be able to predict the consequences. But I do have a PhD in economics, so let me give it a shot:

Recently, I wrote about the conflict between directionalists and destinationists. Some destinationists — such as my good friend Richard Salsman — would argue that the problem with the minimum wage is that it interferes with freedom of contract.

But you don’t have to buy that argument to be persuaded that raising the minimum wage right now is a terrible idea. If you care about the people struggling to keep their jobs in a difficult economy, you should oppose raising the minimum wage: it hurts the very people you want to help. Being able to work, and feel productive, is an important part of the social aspect of our economy. Service jobs are disappearing fast enough, without having the process accelerated by misguided support for increasing the minimum wage.

THIS ARTICLE ORIGINALLY POSTED HERE.


Source: https://wallstreetwindow.com/2023/03/minimum-wage-hurts-whom-it-claims-to-help-michael-munger/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.