Former McDonald’s CEO Just Explained How a $15 Minimum Wage Would Blow Up in Workers’ Faces

Source: Foundation for Economic Education
by Brad Polumbo

“Proponents of a federal $15 minimum wage like progressive Senator Bernie Sanders argue that it would lift millions of workers out of poverty. But the former CEO of McDonald’s just warned that artificially spiking the cost of labor could hasten the drive toward automation and instead leave many workers replaced with machines. … McDonald’s across the country have raised prices to offset nearly all the costs associated with past minimum wage hikes. Basically, average people were no better off. At some point, if they are unable to keep raising prices, stores will instead be incentivized to start aggressively pursuing automation and cutting current workers out of the picture. McDonald’s is already exploring this strategy. It is testing new automated voice-ordering technology at 10 Chicago restaurants, so far boasting an 85 percent accuracy rate, with staff needing to assist on just 1 in 5 orders.” (06/09/21)