Interesting article....
https://www.realclearmarkets.com/ar...t_is_not_a_creation_of_naive_wage_floors.html
Up front, the minimum wage should be abolished. People should be free to transact with whomever they want, and at any wage. They should even be free to pay companies and individuals for the right to work for them. Many would do just that if they could apprentice under Jeff Bezos, Anna Wintour, Nick Saban, or Jose Andres.
Still, what’s missed by the right is that Flippy and others like him would be even more common if the minimum wage were zero. As for the loony left, Flippy is a reminder that companies don’t seek out low-wage workers as much as they go to great expense to avoid them. Caliburger’s experimentation with Flippy vivifies each of the previous assertions.
Regarding the silly notion that excessive wage floors brought on Flippy, let’s be serious. What led to Flippy is the basic truth revealed by Caliburger executives that human burger flippers were tough to keep employed. Simply stated, they were quitting too often. Well, of course they were. Low-wage jobs have long been marked by high turnover. That’s why they’re low-wage and entry level. People don’t stay in them long. They attain skills, then trade them for better pay. The turnover is very expensive for businesses given the time-wasting cost of training new employees. Automation is a logical response to turnover; turnover that – if anything – would be exacerbated if the minimum wage were zero. Think about it. Are people more likely to leave low wage, or high-salaried jobs?
https://www.realclearmarkets.com/ar...t_is_not_a_creation_of_naive_wage_floors.html
Up front, the minimum wage should be abolished. People should be free to transact with whomever they want, and at any wage. They should even be free to pay companies and individuals for the right to work for them. Many would do just that if they could apprentice under Jeff Bezos, Anna Wintour, Nick Saban, or Jose Andres.
Still, what’s missed by the right is that Flippy and others like him would be even more common if the minimum wage were zero. As for the loony left, Flippy is a reminder that companies don’t seek out low-wage workers as much as they go to great expense to avoid them. Caliburger’s experimentation with Flippy vivifies each of the previous assertions.
Regarding the silly notion that excessive wage floors brought on Flippy, let’s be serious. What led to Flippy is the basic truth revealed by Caliburger executives that human burger flippers were tough to keep employed. Simply stated, they were quitting too often. Well, of course they were. Low-wage jobs have long been marked by high turnover. That’s why they’re low-wage and entry level. People don’t stay in them long. They attain skills, then trade them for better pay. The turnover is very expensive for businesses given the time-wasting cost of training new employees. Automation is a logical response to turnover; turnover that – if anything – would be exacerbated if the minimum wage were zero. Think about it. Are people more likely to leave low wage, or high-salaried jobs?
