Minimum Wage and Automation

Is technology—automation—really going to kill jobs?  No.  As many, including me, have written before, automation is only going to shift the nature of jobs.  Minimum wage laws are killing jobs, and will continue to and at increasing rates, by making robots cost effective despite their high up-front costs.

Wal-Mart, for instance, used to employ humans to track individual stores’ cash and manage their books.  Now at roughly 4,700 Wal-Marts, roughly 4,700 of those employees have been replaced by a machine that can track the books and while counting bills and coins at rates of 480 and 3,000 per minute, respectively.  Because it’s Wal-Mart, those folks, where they’ve wanted to, have taken jobs elsewhere in their store at the same pay, but those jobs are at risk, too.  Cashiers are being replaced by automated check-out stands, for instance.

Machines are made cheaper by current and rising minimum wage mandates from Government.

It’s not just Wal-Mart, either; it’s retail in general.  This graph, also from The Wall Street Journal, shows how widespread the risk is.

That’s good for us consumers, as those machines enable us to avoid much of the damage to our pocketbooks minimum-wage laws would do through labor-driven price increases.  Notice that the industries in the graph are especially labor-driven.  So far.

There’s another, this time insidious, impact of this increasing minimum wage driven increasing automation.  Lots of those jobs being lost are moderate-skill ones—counting the money and tracking the books, for instance—and those folks, as the Wal-Mart example illustrates, can find other work.  But what about the low skill work, where the employee truly is being paid minimum wage, because that’s all the work itself is worth (Wal-Mart’s money counter got $13/hr, above the current minimum wage, albeit threatened by $15/hr mandates)?

Those folks—the teenagers looking for summer work for the experience and to build money for college and a resume for later employment, the low/no skill worker trying to work at anything, the single mom or married spouse trying to work a second job to add income to the family—are going to be SOL.  Because Government won’t let them work for less than what Government deigns permit them to work.

The mandated minimum wage does a wannabe worker no good at all, if the job paying that mandated wage no longer exists.

That doesn’t make automation bad; as I wrote above, it’s good for us consumers.  What’s bad is minimum wage mandates—they drive automation, but the bad thing about them is they deprive the unskilled of jobs, with the knock-on failure of preventing them from becoming consumers, too.

EPA Jobs?

The Environmental Protection Agency has sent out more than 1,000 buy-out notices to its employees….

The positions are being eliminated, and the incumbents aren’t being offered positions elsewhere on the government’s teat payroll.  The horror.  The union-demanded, if not God-given, sinecures are not sinecures, after all.  American Federation of Government Employees Local 704 President Michael Mikulka is quite vocal with his dismay.

EPA wants over 1,200 of us to leave, purportedly to save money going forward and claiming that they no longer need the positions occupied by staff that in some cases worked at EPA for over 30 years[.]

Because the existence of a union-protected job means the employer needs that job, and the longer its existence, the deeper into perpetuity that need must be.  Sure.

Mikulka also insisted that the EPA would be less active without those jobs, speaking like that would be a bad thing.  He said this, too:

We’re going to have to do less with less.

Recall that, during the Obama government shutdown in 2011, the EPA rated over 90% of its workforce as unessential and furloughed them for the duration of the shutdown.  Certainly, that per centage was true only for the short-term, but a huge fraction of those 90% really are unessential, and they could be released were the EPA to be returned to its original mission of science-based protection of the environment and moved away from supporting its politically motivated pseudo-science climate funding industry.

The agency certainly can do less with less.  And it should.

It’s Time

…to sweep the ones we can’t trust from the Republican Party of Castrati and from Congress.

When Republicans voted on the repeal-only bill in 2015, they knew Mr Obama would veto it, making their vote largely symbolic. Of the GOP senators currently in the chamber, 49 voted for it at the time.  …

Moreover, many GOP lawmakers have already acknowledged that they would vote differently now that the stakes are far higher….

Now that these persons have to take action more concrete than virtue signaling, they’re exposing themselves as porch dogs.  They’re betraying their country, and more specifically, they’re betraying their constituents, to whom they promised for the last seven years, they’d repeal Obamacare and replace it.

However,

Both [Susan, R, ME] Collins and [Shelley Moore, R, WV] Capito said Tuesday they were unlikely to support the procedural vote for a repeal-only approach.

Senators even are too timid to face debate on the floor of the Senate on so simple a measure.

Capito is being especially disingenuous.

I did not come to Washington to hurt people.  I cannot vote to repeal Obamacare without a replacement plan that addresses my concerns and the needs of West Virginians.

Yet, that’s exactly what she’s doing by supporting Obamacare’s continued existence.  That program not only is devastating the pocketbooks of Americans, including West Virginians, Americans across the country are losing their health coverage plans in droves as health plan providers abandon the market in counties after counties, even whole States.  This is happening now, and it will be increasingly so as long as repeal is blocked by Senators like Capito, with or without a replacement program in hand.  Capito knows this.

Serious reform takes courage.  These worthies don’t have it; they’re quailing, even now, at a first step of repeal.

Senate Majority Leader Mitch McConnell (R, KY) is suggesting he’ll call for a vote on a straight-up repeal, to take effect in two years, during which Congress could work out and pass a replacement program or set of programs.

McConnell should hold the vote, even knowing the porch dogs will vote against repeal and so defeat it (many of whom will vote even against open debate); will vote against their promise; will contradict their vote in 2015, cast as it was deep in the safety of an Obama veto.  Put the porch dogs on record with their votes.  Let them stand exposed and identified.

This is what primaries are for.

A Union

doesn’t like Amazon buying Whole Foods.

[United Food and Commercial Workers International Union President, Marc] Perrone plans to file a complaint to the Federal Trade Commission, arguing that letting Amazon buy Whole Foods would trigger a wave of store closures and eventually quash customer choice.

With a straight face, he argued in his complaint (which somehow fell into The Washington Post‘s hands before the filing) that

Regardless of whether Amazon has an actual Whole Foods grocery store near a competitor, their online model and size allows them to unfairly compete with every single grocery store in the nation.

So, doing a better job of competing in an industry, doing a better job of selling products customers want, is in some way unfair.  Hmm….

And

I’ve got concerns, and our organization has concerns, about what technology does and at what cost to society[.]

Sure he does.  So long as society is defined as union society.  Because technology improvements benefit the broader society of ordinary American citizens.  Just compare tech-developed and built cars with buggies and wagons.  Compare today’s house with yesterday’s.  Compare today’s communications media with yesterday’s.  Compare today’s cars with yesterday’s, come to that.

The union, Perrone said, is worried that America’s shifting shopping preferences will spark a crisis in its industry the same way automation and trade with China and Mexico has wiped out factory work.

Our factory work hasn’t been wiped out; it’s just changed its character because competition made those manufacturing industries get better and do better.

The union just wants a protection from competition.

Imagine that.

Grievances

Thousands of State Department and US Agency for International Development employees indicated in a survey they are worried about the future of their agencies, with some expressing particular concern about lack of support from the Trump administration and Secretary of State Rex Tillerson.

And

Many of the more than 35,000 State Department and USAID employees responding to the survey indicated longtime frustration with the way the agencies function, including poor technology and duplicative and redundant processes that make frequent workarounds necessary. They also cited pet projects created by ambassadors and Congress, according to the report reviewed by the [Wall Street] Journal.

Well, that’s the reason for attempts in the Trump administration to efficient-ize things.  More really can be done with less money if there’s less duplication and fewer useless projects created for the sake of virtue signaling.

On the other hand,

USAID employees in the report said they are particularly concerned about the consequences of a move to fully absorb USAID into the State Department, which officials are considering.

This “concern” is just about turf preservation, not about improving efficiency—which contributes to why these kinds of problems are of such long standing.

These guys can always resign if they don’t like the new direction.  Government jobs are not an entitlement.