Bill Gates on labor substitution...

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_Kevin Graham
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Re: Bill Gates on labor substitution...

Post by _Kevin Graham »

you really do speak about things you know little about, don't you


Well if the technology is already here, and it is far "better and cheaper," then why isn't anyone using it?

This is what I know. About three times a week I stop by Burger King in the morning and pick up my double-croissant, Hershey pie and Dr. Pepper. I usually go there between 6am-7am. Each and every time I go, there is never more than two employees working. This, even during the morning rush when everyone is picking up food on their way to work. On most occasions, it is just the one woman, usually a bi-lingual Latina who happens to be the manager. She is running back and forth making the food, taking orders with her headset, and swiping debit cards. I saw this when I first came back from Brazil and thought OK, everyone called in sick. But then I noticed it was happening all the time at all the restaurants.

This is very different from the days when I was working fast food as a teenager making $3.35 an hour. Most of the employees were kids in high school, save a couple of college students including the manager.

Nowadays, these places are operated mostly by grown adults, sometimes overqualified adults, who support families. These companies have been doing essentially what corporate America at large has been doing since the 80's, and that's making the worker do more work for the same pay. Making them "more productive" so the CEO can get his bonus and shareholders are happy with their quarterly statements. So what is the limit of a person's productivity? When does a corporation decide that an employee had reached his or her limit of productivity? Simply put, it doesn't. It just keeps throwing the whip at them and say like it or leave it.

Hasn't anyone ever noticed that these places don't even use the first drive through window anymore? "Pull up to the second window please." Managers running these places are told that their promotions are dependent on their ability to cut costs better than other store managers, so you generally see them doing all the functions other employees are supposed to be doing.

So these places have been cutting costs left and right for decades now. I don't think there is room for investing is burger machines because these places will still need someone there to run the store and make sure nothing malfunctions. Since these places generally have only one to three people doing all of the necessary functions these days anyway, it is hard to imagine how it would be beneficial to invest in such a machine.

But I've said several times over the years that absolute automation is in our future no matter what. At some point in time, whether it be 50 or 200 years from now, everything is going to be automated. During the first phase of this transition the only jobs available will be for computer programmers. That is, until they figure out a way to make computers program themselves, and then even they will be jobless. So what happens to all the low skilled workers who have no hopes of ever having a job because computers and robots are doing it all without complaining about vacation time or restroom breaks? It freaked me out when I came back from Brazil in 2008 and saw people scanning/bagging their own groceries and paying a computer. This is the trend, and it isn't about to change now no matter what the minimum wage is.

There will eventually be a point in human history when we'll all have no choice but to move towards some kind of universal socialism. It is inevitable. I mean, if no one is working because everything is automated, then how does anyone live? Except of course, the wealthiest .05%, who will own 98% of all the world's wealth? Not because they ever worked a day in their lives or earned anything themselves, but because they were lucky enough to be born into families that had invested in automation years before it completely took over.
_cinepro
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Re: Bill Gates on labor substitution...

Post by _cinepro »

Kevin Graham wrote:Having said that, who cares what Gates says? He's never made or paid anyone minimum wage. The minimum wage argument by the Right Wing has been thoroughly dismantled by recent history. Your fighting tooth and nail to keep it at $7.25 when in fact many states have implemented minimum wages significantly higher than that already. In Oregon and Washington it is well above $9.00, and yet the thousands of fast food restaurants in those states still manage to rake in profits. Imagine that.



This study appears to bear that out:

http://www.mitpressjournals.org/doi/abs ... Code=rest&

But that burger-making machine is awesome, because if it does what the company says it does, it's not a matter of equivalency. The machine actually makes a better, fresher burger than what customers are getting now. So even setting aside "wage" issues, it would allow restaurants to improve the quality of their food.

If they can do this while at the same time hiring fewer people, that's the future of fast food.
_Kevin Graham
_Emeritus
Posts: 13037
Joined: Fri Oct 27, 2006 6:44 pm

Re: Bill Gates on labor substitution...

Post by _Kevin Graham »

But that burger-making machine is awesome, because if it does what the company says it does, it's not a matter of equivalency. The machine actually makes a better, fresher burger than what customers are getting now. So even setting aside "wage" issues, it would allow restaurants to improve the quality of their food.


But I think the reason it isn't being used is because the fast food industry has already lowered their workforce while requiring that they take on more work. They've been paying people less to do more work for decades now.

So given my examples above, how is it really going to save a Burger King a lot of money when the entire store is being run by two just employees who are going to be needed, with or without a burger machine? Will the burger machine also make breakfast from 6am-10:30am? Will it take someone's order, take their money, clean the bathrooms, sweep the floors, clean up spills, pick up around the parking lot, make sure there is enough carbonation in the fountain drink, see that the store isn't being robbed, etc?

Why buy a machine when the industry has already started making management and the cleaning guy take up those duties?

I can think of only a few Burger Kings or McDonald's that are so busy that they might benefit from such a product.
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