by 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.