Two months after its wage hike, Amazon opened a store featuring “cashierless checkout technology” in Washington state. As customers who visit the Amazon Fresh store “Just Walk Out” with their items, the building’s technology will automatically track the products and charge the user’s Amazon account. The store will also feature Alexa kiosks and Amazon package pickup.
McDonald’s likewise began pioneering voice-automated drive-thrus in the Chicago area. Executives expect that the technology will appear across the United States within the next five years.
Both firms’ seemingly contradictory actions — raising wages while preparing the technology that will soon enable mass layoffs — perfectly reflect federal analysts’ warnings about the labor market distortions caused by minimum wage hikes.
For instance, a recent study from the Congressional Budget Office proved that although President Biden’s $15 minimum wage plan would increase salaries for 900,000 Americans, it would leave 1.4 million unemployed.
In keeping with the decades-long trend of technological unemployment, the embrace of low-cost technology — accelerated by legislative pressure to raise wages — will continue to displace American workers.
Large Businesses Are Using Technology To Dodge Minimum Wage Hikes
McDonald’s likewise began pioneering voice-automated drive-thrus in the Chicago area. Executives expect that the technology will appear across the United States within the next five years.
Both firms’ seemingly contradictory actions — raising wages while preparing the technology that will soon enable mass layoffs — perfectly reflect federal analysts’ warnings about the labor market distortions caused by minimum wage hikes.
For instance, a recent study from the Congressional Budget Office proved that although President Biden’s $15 minimum wage plan would increase salaries for 900,000 Americans, it would leave 1.4 million unemployed.
In keeping with the decades-long trend of technological unemployment, the embrace of low-cost technology — accelerated by legislative pressure to raise wages — will continue to displace American workers.
Large Businesses Are Using Technology To Dodge Minimum Wage Hikes