The CEO of Hardee’s and Carl’s Jr., Andy Puzder, has been following the presidential election quite closely this year, and it’s for a really good reason. He just made a bombshell announcement about his companies’ plans, and they’re completely dependent upon Hillary Clinton or Bernie Sanders getting elected.
Like most other businessmen, Puzder realizes that labor is the single largest cost that a company endures. Aside from hourly wages, employers are forced to pay for worker’s compensation insurance, payroll taxes, and other expenses most people don’t even know about, which means that even the difference of a dollar per hour can cost a company a lot of money every year.
With both Clinton and Sanders promising to raise the federal minimum wage substantially, Puzder is concerned that his companies will have to raise their prices to the point they’ll no longer be competitive. However, he has a contingency plan he’s working on, should either of the two socialists get elected – automation.
Business Insider has more:
The CEO of Carl’s Jr. and Hardee’s has visited the fully automated restaurant Eatsa — and it’s given him some ideas on how to deal with rising minimum wages.
“I want to try it,” CEO Andy Puzder told Business Insider of his automated restaurant plans. “We could have a restaurant that’s focused on all-natural products and is much like an Eatsa, where you order on a kiosk, you pay with a credit or debit card, your order pops up, and you never see a person.”
Some may say that Puzder is simply looking ahead since automation has always been a reality of technology, but they’d be wrong. He said exactly the reason he would switch to automation, and it doesn’t have anything to do with being futuristic.
“This is the problem with Bernie Sanders, and Hillary Clinton, and progressives who push very hard to raise the minimum wage,” says Puzder. “Does it really help if Sally makes $3 more an hour if Suzie has no job?”
Ouch. This is what we in the conservative world like to call the “law of unintended consequences.” When wages are artificially raised by an arbitrary amount, businesses are forced to make cuts in other places to make up for the difference while maintaining their narrow profit margin. Those cuts come in all forms, including cutting back the workforce since it’s the single largest expense for a business.
The problem, as Puzder explains, is that you’re increasing the cost to produce a product without increasing the revenues from the product. So there’s two options; find a way to make the product cheaper to produce, or raise the prices on your product and risk losing customers.
Puzder says he’s going with the first option.
“If you’re making labor more expensive, and automation less expensive — this is not rocket science,” says Puzder.
He also noted that the added bonus of automation is that you never have to worry about getting complaints about customer service.
“They’re always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall, or an age, sex, or race discrimination case,” says Puzder of swapping employees for machines.
Unfortunately, most far-left ideologues like Clinton and Sanders haven’t ever employed anybody, let alone run a business, so they have absolutely no idea how they operate. That also means they fail to realize that artificially raising wages will kill jobs.
But let’s not ever let facts get in the way of trying to buy votes with an increased minimum wage, right?