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This is a capex vs opex question. Raise minimum wage enough and firms cross the border to investing in capex such that they replace employees.


If they’re on the fence already, then they should be doing it. A few hundred dollars a day means next to nothing to McDonald’s, and everything to the workers. Don’t hold the threat of automation over them, if it’s gonna happen rip the bandaid off.


It’s not a matter of a few hundred dollars a day. It’s a matter of whether the decision to replace workers is NPV positive. It’s clearly only so up until the point they are at now with the kiosks.


A few hundred a day means a lot to the franchise owner. It really means a lot to the mom and pop pizzeria down the street or the owner of the convenience store.


And the plantation owner. Cheap labor is not a right.


I’ve asked this before, how much “labor” could the average money losing, VC backed, startup afford?




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