The Arrogant Elite

Walter E. Williams

A basic economic premise holds that when the price of something rises, people seek to economize on its use. They seek substitutes for that which has risen in price. Recent years have seen proposals for an increase in the federal minimum wage to $15 an hour. Some states and localities, such as Seattle, have already legislated a minimum wage of $15 an hour.

Nobody should be surprised that fast-food companies such as Wendy’s, Panera Bread, McDonald’s and others are seeking substitutes for employees who are becoming costlier. One substitute that has emerged for cashiers is automated kiosks where, instead of having a person take your order, you select your meal and pay for it using a machine. Robots are also seen as an alternative to a $15-an-hour minimum wage. In fact, employee costs are much higher than an hourly wage suggests. For every employee paid $15 an hour, a company spends an additional $10 an hour on non-wage benefits, such as medical insurance, Social Security, workers’ compensation and other taxes. That means the minimum hourly cost of hiring such an employee is close to $25....Enter the arrogance and callousness of the elite. Their vision of what a person should earn, expressed by higher minimum wages, destroys people’s best alternative without offering a superior one in its place........To Read More.....