The Real Minimum Wage

Progressives, awash in worry about income inequality, will barber on and on over whether the minimum wage should be $10, or $11.50, or even a Seattle-sized $15/hour.

Conservatives know that the real minimum wage is zero.

“Diggity”, a new fast-food restaurant concept in Coon Rapids, gets a jump on McDonands, does away with the server:

Diggity functions on an elaborate and expensive system of self-serve, touchscreen kiosks and software that allow customers to place orders directly from smartphones or tablet devices. Diners watch monitors (or their phones) to track the progress of their order and pick it up at the counter when ready.

Customers can also order takeout online, drive into a designated spot in the parking lot and check in using the restaurant’s wireless Internet connection, which will ping the staff with a request to bring the order out.

“You don’t even have to make a telephone call, which is one more convenience factor,” Cary said.

The system cost six-figures (Cary wouldn’t be more precise), but he said he has no doubt it will pay for itself. The setup from Michigan’s Nextep Systems allowed Hemipshere to hire half the staff a restaurant of Diggity’s size would normally need.

But wasn’t it just the “wow” factor that led to the innovative design?

Cary and Managing Partner Anoush Ansari said the new model was inspired by Minnesota law mandating a gradual bump in the minimum wage.

Thanks, DFL! The teen unemployment rate is going to take another hit.

Posted

July 16, 2014

Business, The Economy and The Markets, Entitled America!, Taxes

Mitch Berg

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Comments

34 responses to “The Real Minimum Wage”

Scott Hughes

July 16, 2014

Teens, retirees, and those looking to make an extra buck are going to be hurt by the minimum wage increase nonsense. I wouldn’t be shocked to see tech advancement at the local pub before long.

Forbes has done some good articles that speak directly to this:
http://www.forbes.com/sites/modeledbehavior/2013/07/30/doubling-mcdonalds-salaries-a-great-way-to-get-workers-replaced-by-machines/
Joe Doakes

July 16, 2014

Thanks for the heads-up, Mitch. I’ll check it out but I’m skeptical. I don’t think the “no-humans-involved” concept will catch on until they replace Hooters girls with Austin Powers Sexbots — THEN we’ll see some action in the restaurant business. I wonder what the Dayton boys think now?
.
TheFedSucks

July 16, 2014

The DFL morons don’t get that the negative adjustments, layoffs, and workarounds are just getting started. Look at Winker’s twitter.
Bill C

July 16, 2014

I bet the creator of this meme pic had no idea it would happen so soon:

http://www.powerlineblog.com/admin/ed-assets/2014/01/Min-Wage-Replacement-copy.jpg
nate

July 16, 2014

Honestly, Bill, that machine might be more intelligent than some of the counter staff I’ve dealt with lately. And significantly more accurate than shouting at a the tinny speaker in the drive-through.
nate

July 16, 2014

On the other hand, can the machine handle substitutions? I don’t want a Big Mac, I want a lightly grilled weasel on a bun with French Fries. Where’s the button for that?
,
bikebubba

July 16, 2014

If the system is in the low six figures, it pays for itself in a year by replacing just five employees. I think it’s going to happen. Ouch.
mnbubba

July 16, 2014

“Honestly, Bill, that machine might be more intelligent than some of the counter staff I’ve dealt with lately.”

might? MIGHT??? Surely you jest. And as a bonus, it speaks english.
MtkaMoose

July 16, 2014

Lund’s & Byerly’s Kitchen in Wayzata has eliminated wait staff. You order from an iPad at your table and someone brings your order when it’s ready. More jobs priced out of the market.

When are minorities going to figure out that they get screwed by higher unemployment every time the libs “help” them?
Powhatan Mingo

July 17, 2014

MitkaMoose wrote:
“When are minorities going to figure out that they get screwed by higher unemployment every time the libs “help” them?”

They don’t look at it that way — and they are not all minorities. Not by a long shot.
They think the business owner is evil for not paying them the new wage. That is how most minimum wage workers will think of it.
Emery

July 17, 2014

“Conservatives know that the real minimum wage is zero.”

Yes, I can hardly wait until MN has the Conservative–Tea Party utopia that’s been foisted upon Kansas and Wisconsin. Two states where the the conservative economic agenda has run it’s course.
Mitch Berg

July 17, 2014

I’m almost tempted to ask, Emery, what you think is wrong with Wisconsin and Kansas, if only to try to predict which chanting points we’ll get back.

So go for it. Enlighten us.
Mitch Berg

July 17, 2014

By the way, Emery: “Conservatives know the real minimum wage is zero” means “if you lose your job because your skills aren’t worth what your employer is forced to pay for them, then it doesn’t matter if the “minimum wage” is $25/hour; you’ve got nothing”.
bikebubba

July 17, 2014

It’s worth noting that Kansas and Wisconsin are not exactly Tea Party dream worlds. Kansas has been roiled by former governor Kathleen Sebelius’ unwillingness to prosecute clear evidence of abortion clinics hiding evidence of statutory rape (so much for Democrats protecting women!), and Wisconsin still bears the marks of decades of liberal mismanagement–a low tax haven it is not yet.
TheFedSucks

July 17, 2014

I forget where I saw this, but Kansas is really just doing a bunch of supply side wishful thinking. You can get away with this on the Federal level, which is what the GOP did.

They are all venal ignorant whores that don’t understand economics and that can’t cut or say no.
Emery

July 17, 2014

“Voodoo Economics”
GHW Bush
TheFedSucks

July 17, 2014

Come on Emery, finish it, you started it.

LOOK AROUND. It’s so obvious: too many non-public goods and government lies and lies about actuarial science. Rent seek or die. Government is a *net* minus to life and living.
TheFedSucks

July 17, 2014

Here it is http://bit.ly/1qiSS1v

Emery, why are you defending government? It sucks.
Emery

July 17, 2014

I am simply pointing out the myth that ‘cutting taxes raises revenue’.
If the GOP hates debt so much, why is Kansas near the top?
http://www.usgovernmentspending.com/state_debt_rank

I’ve always said that if the GOP were free to do whatever they wanted it would be the death of them.
TheFedSucks

July 17, 2014

Government has to be cut.

Look at the article. The whole thing was dumb.

Taxes suck money out of the productive economy and away from people spending on what they genuinely need and want. It’s net negative to life as it stands.
TheFedSucks

July 17, 2014

R E N T S E E K I N G

W A S T E

Government is stupid. It ruins life.
TheFedSucks

July 17, 2014

We would all be better off if the government just provided genuine public goods and overspent / wasted money on getting them right. Kevin Williamson says 80% of government is non-public goods.
TheFedSucks

July 17, 2014

Think about it. Why does the government allocate capital better than the private sector? Think about every non-public good. Hell, think about the public goods.

100 years of Neo Keynesian and anti- republican governance (17th amendment etc) have made us inured to the obvious. Then throw in the rent seeking.
TheFedSucks

July 17, 2014

Emery, this would be good for you. Seriously. http://bit.ly/1qj1dT9
Emery

July 18, 2014

Kansas’ Governor Brownback has a legislature with Republican super-majorities. Together they have reduced income taxes not once but twice, eliminated taxes on corporate profits that are passed through to individuals.

And what do these policies reveal? The state’s (Kansas) revenues have plunged. Both Kansas’ and Wisconsin’s job growth and income growth are behind the rest of the USA. It’s also worth mentioning that this has come in a year where two rounds of income tax cuts have taken effect. Do you need any more proof that tax cuts don’t create jobs? I supposed it won’t stop some bloggers and others from claiming ‘the jury is still out’.
http://econbrowser.com/wp-content/uploads/2014/07/jun14pix0.jpg
http://online.wsj.com/articles/sam-brownbacks-tax-cut-push-puts-kansas-out-on-its-own-1402448126
bosshoss429

July 18, 2014

Of course, we can also look at those sterling examples of Democrat economics; Michigan, Illinois and California to see what real economic stupidity looks like!
TheFedSucks

July 18, 2014

Brutal article about California http://thebea.st/1r8YXeQ
Mitch Berg

July 18, 2014

Emery,

Wisconsin’s job growth is going to lag no matter who does what, because it’s economy is much more tied to manufacturing than most. Compare that to MN, where the biggest industries are healthcare, insurance and financial services – all of which have not only been growing, but heavily subsidized by taxpayers; no wonder MN is doing well.

As far as KS goes – “shrinking revenues” isn’t necessarily a bad thing, provided you cut enough government to fit within the budget.

Do you need any more proof that tax cuts don’t create jobs?

Stop mixing correlation and causation. Which is, in fact, the entirety of your comment.
Emery

July 18, 2014

My point is to compare states after a change implemented to increase employment? Did it work? States with more progressive economic policies that reach everyone, not just tax breaks for a few rich people have better growth. Seems simple, but some would like to obscure the facts.
Bill C

July 18, 2014

more progressive economic policies that reach everyone, not just tax breaks for a few rich people

Because we all know that “progressive economic policies” is just code words (liberals LOVE the phrase “code words”) for….

tax increases that reach everyone, not just tax breaks for a few rich people.

FTFY.

When the rich people quit paying the vast majority of taxes, and those who pay nothing or get net tax benefits from the government, start paying something into the kitty, then I’ll stop ignoring the whole “tax breaks for the rich”/”the rich don’t pay their fair share” chanting point. The POOR don’t pay their fair share. The rich are paying more than their fair share AND the poors’ share as well.
Bill C

July 18, 2014

progressive economic policies

Code words for “increased government spending” which necessitates “increased taxes on the wealthy” which will result in increased taxes on the poor as the wealthy will move their money around to avoid taxes. They didn’t get wealthy by being stupid.

Dayton and other trust fund brats don’t count in that categorization.

Increased government spending means decreased private sector revenues, which means decreased productive employment, which means decreased tax revenue.

In liberal la-la-land, it’s a linear process to rainbows. In the reality-based community, it’s a vicious downward spiral.
TheFedSucks

July 19, 2014

“States with more progressive economic policies that reach everyone…”

MOTHER OF GOD MITCH GIVE HIM SOME BLOG SPACE TO EXPLAN THIS.

It’s nonsense. Nice in theory, it’s all rent seeking and waste in reality.
TheFedSucks

July 19, 2014

Look at California. Every possible edge and advantage you could imagine, overridden by stupid statist rent seeking. Everyone is a whore or parasite, so this stuff gets unmanageable and intractable quick. If you aren’t a gated community liberal or living off the government you are screwed.

Gated community liberals vote for placation of the lower classes instead of prosperity.
TheFedSucks

July 19, 2014

The ultimate issue is, Fed policy and the regulation of finance just sucks the life out of the economy and / or makes it literally more risky than it needs to be; so people try to “fix” it with government or better yet, MAKE MONEY OFF THE GOVERNMENT, which is impossible in the long run.