McDonald's response to flight$15

http://www.thefederalistpapers.org/us

        For years workers have pleaded for a an increase in the federal minimum wage. Their argument is that a higher minimum wage will bring millions out of poverty and provide a wage that they can live off of. Theoretically this sounds like a good plan, however the businesses that employ minimum wage workers are typically running on tight margins and in order to answer to the increase they must lower prices or let people go. Businesses are getting extremely clever to answer to the minimum wage increase and make payroll. Recently, McDonald's introduced a  computerized kiosk with a brand new menu and experienced extremely successful results. 

       For the fast food industry, who makes profits though the narrow margins of their transactions, the spike would bring many unintended consequences. After the $15 minimum wage was pioneered by Seattle, the city is now experiencing the consequences to the change. According to "Seattle sees fallout from $15 minimum wage, as other cities follow suit" the author Dan Springer argues "many minimum wage workers are eligible for basic welfare programs and with the increase workers are now asking for fewer hours". The whole point to increase the minimum wage was to take away the peoples dependence on the government, but many workers have found that they can stay just under the poverty line and continue to receive subsidies. The minimum wage increase will increase prices and unemployment while the individuals dependence on the government stays constant. 

      McDonald's took their own stance on the proposed federal minimum wage increase by introducing computerized kiosks'. If a computer can do a job more efficiently for less resources then McDonald's will take the business minded approach and computerize the industry. The unskilled minimum wage protesters are now going to be making zero and will be replaced with skilled workers who will program and fix the machines.

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