Impact of Minimum Wage Increase on Fast-Food Industry and Automation
Fast-food workers in California received a raise to $20 per hour, prompting discussions about automation in the industry. The opening of a "fully autonomous restaurant" in Pasadena sheds light on the complexities of AI and automation in the service sector, highlighting the need for worker input and industry-wide standards.
Key Points
- Automation does not always lead to greater efficiency and cost-cutting
- New technology in the service sector can result in chronic understaffing and increased risk of injury and wage theft
- Automation often benefits techno-middlemen selling hardware and software solutions
Pros
- Minimum wage increase benefits low-wage workers
- Discussion on automation prompts consideration of industry-wide standards
Cons
- Automation may lead to job displacement and income inequality
- High costs of automation could burden small businesses