Econ 101

Whether you call it economics, econ, or eco — and whether the course number is 1, 10, 101, or something similar — one of the first things you learn (or did learn before PC-ness set in) was that unionization and the minimum wage reduce employment. Why? Because the objective of unionization and the minimum wage is to dictate a wage that is higher than workers would otherwise attain. The result, of course, is that employers will hire fewer workers than they would otherwise hire.

Ed Rensi, former CEO of McDonald’s USA, offers this testimony:

As of 2020, self-service ordering kiosks will be implemented at all U.S. McDonald’s locations. Other chains, including fast-casual brands like Panera and casual-dining brands like Chili’s, have already embraced this trend. Some restaurant concepts have even automated the food-preparation process; earlier this year, NBC News profiled “Flippy,” a robot hamburger flipper. Other upcoming concepts include virtual restaurants which eliminate the need for full-service restaurants (and staff) by only offering home delivery….

My concern about this is personal. Without my opportunity to start as a grill man, I would have never ended up running one of largest fast food chains in the world. I started working at McDonald’s making the minimum wage of 85 cents an hour. I worked hard and earned a promotion to restaurant manager within just one year, then went on to hold almost every position available throughout the company, eventually rising to CEO of McDonalds USA.

The kind of job that allowed me and many others to rise through the ranks is now being threatened by a rising minimum wage that’s pricing jobs out of the market. Without sacrificing food quality or taste, or abandoning the much-loved value menu, franchise owners must keep labor costs under control. One way to combat rising labor costs is by reducing the amount of employees needed.

Low-skill workers have to start somewhere. Unionization and the minimum wage kill entry-level jobs. This should be taught in 9th grade social studies (or whatever it’s called now), but it won’t be because the unionized lefties who control public schools wouldn’t allow it. They are greedy, hypocritical idiots who proclaim compassion for the poor while ensuring that they stay poor.

(H/T Dyspepsia Generation)


Related posts:
A Short Course in Economics
Addendum to a Short Course in Economics
Does the Minimum Wage Increase Unemployment?
The Public-School Swindle (a parallel treatment of the effects of unionization on teachers’ wages and employment)
Why I Am Anti-Union

Leave a reply, insult, anecdote, or money -- as you wish. Comments are moderated, to maintain the intellectual standards of this blog. :-)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.