Posted by Richard Rider at 8:25 am on Oct 22, 2013 Comments Off on An army of robot baristas could mean the end of Starbucks
Raise the minimum wage! To $10, $12, $15 — more!
Help the downtrodden fast food worker. It all comes out of
corporate profits, and so who cares? What could be more
fair?
Two problems:
1. Economic reality.
2. Technology.
Dramatically raising wages (coupled with all the ancillary costs
of labor) is a huge incentive to replace labor with machines.
Below is a highly sophisticated coffee dispensing kiosk (not
yet in commercial production) that is potentially
thecompletereplacement for a
Starbucks store. It’s a highly specialized, heavily
customized “coffee shop” with next to ZERO labor.
Don’t get me wrong. For years to come, many clueless liberals
will still pay $5 or more for their handmade coffee at Starbucks.
Saving the world, one cup of java at a time.
But if (more likewhen) this technology
innovation wave is fully commercialized, market forces (and lower
prices) will have a devastating effect on unskilled fast food
labor. Unemployment will grow, with fewer and fewer able to
get even… Read More