Business

Why Increasing Wages Will Lead to Less Jobs

The goal of a corporation is to make a profit. The only way to do that is to lower the cost to deliver a product or service to a customer or charge more to the customer.

Business owners are experts at pivoting. By pivoting I mean when there’s an obstacle in the way of profit, they just go around it. The higher the minimum wage gets, the faster business owners will have no choice but to pivot towards automation. Automation is cheaper and more efficient – exactly what corporations want.

McDonalds have already made the move by adding touch screens to their restaurants. Restaurants like Eatsa in San Francisco are completely automated.

It’s inevitable that jobs will start to disappear but increasing wages is the fastest way to get there.


Also published on Medium.



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